Follow Us:

Share:

 

Blog Archive

Archive
<October 2023>
SunMonTueWedThuFriSat
24252627282930
1234567
891011121314
15161718192021
22232425262728
2930311234
Monthly
September 2023 (2)
August 2023 (2)
July 2023 (1)
June 2023 (1)
May 2023 (2)
April 2023 (2)
March 2023 (2)
February 2023 (1)
January 2023 (2)
November 2022 (1)
October 2022 (1)
September 2022 (2)
August 2022 (2)
June 2022 (2)
May 2022 (1)
April 2022 (1)
March 2022 (1)
February 2022 (1)
January 2022 (2)
November 2021 (5)
October 2021 (2)
August 2021 (2)
July 2021 (2)
June 2021 (2)
May 2021 (2)
April 2021 (1)
March 2021 (1)
February 2021 (5)
January 2021 (3)
December 2020 (4)
November 2020 (4)
October 2020 (5)
September 2020 (4)
August 2020 (5)
July 2020 (4)
June 2020 (4)
May 2020 (4)
April 2020 (5)
March 2020 (4)
February 2020 (5)
January 2020 (4)
December 2019 (3)
November 2019 (5)
October 2019 (4)
September 2019 (4)
August 2019 (5)
July 2019 (4)
June 2019 (4)
May 2019 (5)
April 2019 (4)
March 2019 (5)
February 2019 (3)
January 2019 (6)
December 2018 (3)
November 2018 (5)
October 2018 (3)
September 2018 (3)
August 2018 (5)
July 2018 (4)
June 2018 (2)
May 2018 (2)
April 2018 (4)
March 2018 (4)
February 2018 (4)
January 2018 (4)
December 2017 (4)
November 2017 (4)
October 2017 (2)
September 2017 (1)
August 2017 (5)
July 2017 (3)
June 2017 (4)
May 2017 (5)
April 2017 (4)
March 2017 (5)
February 2017 (5)
January 2017 (4)
December 2016 (5)
November 2016 (4)
October 2016 (4)
September 2016 (5)
August 2016 (4)
July 2016 (4)
June 2016 (5)
May 2016 (4)
April 2016 (5)
March 2016 (4)
February 2016 (4)
January 2016 (4)
December 2015 (5)
November 2015 (4)
October 2015 (4)
September 2015 (3)
August 2015 (2)

Go

 

 

OMVIC Blog: Car Buying Tips

I Signed a Contract for a Car – Can I Cancel?

Aug 19


Friday, August 19, 2016  RssIcon

Signing contract Are cooling-off periods (i.e. an opportunity to cancel a contract and get back your money) the law in Ontario or simply urban myths? Well before answering that question, let’s take a quiz to test your consumer rights knowledge.

 

Quiz: Test Your Consumer Rights Knowledge

If you sign a contract to join a gym that requires you to pay $50 (or more) in advance, which of the following is true:

  1. You can cancel within 24 hours
  2. You can cancel within 48 hours
  3. You can cancel within 10 days
  4. You can cancel within 20 days
  5. There’s no cooling-off period; you signed a legal, binding contract

If you sign a contract in your home to buy a hot water heater, which of the following is true:

  1. You can cancel within 24 hours
  2. You can cancel within 48 hours
  3. You can cancel within 10 days
  4. You can cancel within 20 days
  5. There’s no cooling-off period; you signed a legal, binding contract

If you sign a contract to purchase a vehicle, which of the following is true:

  1. You can cancel within 24 hours
  2. You can cancel within 48 hours
  3. You can cancel within 10 days
  4. You can cancel within 20 days
  5. There’s no cooling-off period; you signed a legal, binding contract

 

Answers

So let’s see how you did. The cooling-off period for most fitness club contracts is 10 days; that’s the law; and the right to cancel is provided by the Consumer Protection Act (CPA). The CPA also grants a 20-day cooling-off period for hot water heater contracts signed in your home. As for vehicle purchases, the cooling-off period is…a great urban myth.

Sales final contract  

“Unfortunately, the belief that there is a cooling-off period for vehicle purchases is a common misperception,” explained Terry O’Keefe, Director of Communications and Education for OMVIC, Ontario’s vehicle sales regulator. “Unless there are conditions written into the contract allowing for cancellation, there’s no cooling-off period – period.”

OMVIC recently commissioned a survey on this matter; the results even surprised the regulator. Of 800 Ontarians questioned, only 13 per cent knew there was no cooling-off period when buying a car; 44 per cent weren’t sure; the remaining 43 per cent believed there was.  

So what can a consumer do if they sign a purchase agreement and then want to back out? “Be honest with the dealer,” suggests O’Keefe. “We find many dealers will cancel a contract and return a deposit as a gesture of goodwill.” But not all dealers may be so inclined, nor do they have to be. It’s perfectly acceptable for dealers to seek compensation for liquidated damages from the consumer. These are the costs the dealer will incur for letting the consumer out of the contract; they might include additional advertising or financial carrying costs. According to O’Keefe, “Liquidated damages must be reasonable and provable. If a consumer thinks the damages a dealer is claiming are unreasonable, they should contact OMVIC’s Complaints and Inquiries Team for assistance.”

So while buying from an OMVIC-Registered Dealer is unquestionably the safest way for most consumers to purchase a vehicle (buying privately comes with NO consumer protection), it’s still vital consumers educate themselves and learn to ask the right questions.

 

7 Car-Buying Tips:

  1. Ensure the salesperson understands your needs – not being listened to? Shop elsewhere.
  2. Take a thorough test drive –  not just around  the block.
  3. Understand “all-in” pricing –  dealers cannot charge more than the advertised price (except to add HST & licensing) – should they try, shop elsewhere and report the dealer to OMVIC.
  4. For used vehicles: ask for or purchase a history report – consider a mechanical inspection, particularly if the vehicle is out of warranty.
  5. Get all conditions in writing (e.g. “subject to spouse’s approval” or “xxx to be repaired”).
  6. Get all disclosures in writing (e.g. “no accidents”).
  7. Carefully read the contract (and loan agreement) before signing – because remember, once signed, sales are FINAL.

Click here for more tips on buying a car from an OMVIC-Registered dealer. 

For more information about your car-buying rights, visit omvic.ca. To contact OMVIC’s Complaints and Inquiries Team, call 1-800-943-6002x5105 or email consumers@omvic.on.ca.

Connect with OMVIC on social media!


facebook    Ontario Motor Vehicle Industry Council

twitter@omvic_consumers

instagram   @omvic_official


LinkedIn   Ontario Motor Vehicle Industry Council


omvic www.omvic.ca


cpo  www.ontario.ca/page/consumer-protection-ontario



Copyright OMVIC ©2016

Print