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OMVIC Blog: Car Buying Tips

5 Examples of What Car Dealers Must Disclose

Oct 21

Written by: OMVIC Communications
Friday, October 21, 2016  RssIcon

Thinking about buying a car? Do you know what a dealer must tell you about a vehicle’s past use, history and condition?

One of the key pillars of protection offered to Ontario consumers who purchase from a registered dealer is the mandatory disclosure requirement. Ontario’s Motor Vehicle Dealers Act requires OMVIC-Registered Dealers to disclose in writing a vehicle’s past use, history and condition. For example, dealers must disclose incident or collision damage repairs exceeding $3,000.

This transparency helps ensure you know what you’re buying before signing a contract and driving the car off the lot. This is just one example of the 22 mandatory disclosures dealers in Ontario are required to make.

 

5 More Examples of What Car Dealers Must Disclose

When applicable, dealers are also required to include written disclosure statements on the purchase contract for the following:

  1. If the vehicle was previously registered outside the province of Ontario in the last seven years. A dealer must clearly state, in writing, where the vehicle was previously registered.
  2. If the vehicle was previously used as a daily rental, and was not subsequently owned by someone other than a dealer.  
  3. The total distance the vehicle was driven.
  4. If the vehicle was branded under the Highway Traffic Act as irreparable, salvage or rebuilt, or was declared a total loss by an insurer.
  5. If the vehicle needs repairs to major components including the engine, transmission, computer or air conditioning, to name a few. 

To learn about all of the 22 required disclosures, click here.

So when consumers purchase or lease from a registered dealer, they are protected by Ontario’s consumer protection legislation enforced by OMVIC. They are entitled to full disclosure of a vehicle’s past use, history and condition, all-in price advertising, rescission rights, as well as access to the Motor Vehicle Dealers Compensation Fund. Those who choose to buyClint Eastwood 2 privately, however, may actually enter a marketplace much like that of Dodge City, where larcenous crime was the norm and lawmen scarce, because consumers who buy privately have no protection. In Ontario, no consumer law covers private transactions and OMVIC cannot assist if problems arise with a private deal. Further, consumers who buy privately may become the unwitting victim of a curbsider – an illegal, unlicensed car dealer. So, know your rights in a regulated marketplace and understand how and when those protections apply.

 

OMVIC Protects Car Buyers in Ontario

 

An educated and informed consumer is a protected consumer. Visit OMVIC’s website to learn more about your car-buying rights and when they apply, as well as additional tips on buying a car in Ontario.

As the regulator of motor vehicle sales in Ontario, OMVIC protects consumers and maintains a fair and informed marketplace by:

  • Maintaining strict registration requirements for Ontario’s 8,000 dealerships and 26,000 salespeople
  • Regularly inspecting all Ontario dealers (new and used)
  • Providing free complaint handling to consumers
  • Developing/delivering consumer and dealer education/awareness programs
  • Investigating and prosecuting non-compliance of registered dealers and salespeople
  • Investigating and prosecuting illegal car sales (curbsiding)

Looking to buy a new or used car in Ontario? Understand all-in price advertising and learn how consumers are protected by the Compensation Fund, which is your right if something goes wrong.


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