Protect yourself. Read these important car-buying tips before you sign!
March is Fraud Prevention Month, as such OMVIC is reminding consumers to beware of curbsiders; illegal unlicensed dealers who often pose as private sellers. Some operate from small automotive businesses (repair shops, rental companies, etc.). Others spend their time behind a computer screen, lying in wait in online marketplaces, ready to pounce on unsuspecting consumers. In fact, 25% of online private vehicle sale ads are 'actually' placed by curbsiders.
There’s a new danger riding in on a storm for used car buyers—flood-damaged vehicles. “Authorities in the US have told us they expect about half a million vehicles to be flooded as a result of Hurricane Harvey alone,” said Tom Girling, Director of Investigations for OMVIC, Ontario’s vehicle sales regulator. “And they expect many of them will end up being exported—including to Canada.”
Sending a “child” off to university or college can be traumatic – for the parents of course; the kid will be just fine. So to make it easier to keep ‘em coming home for more than just Thanksgiving and spring break, some parents will head out with their teens on an elusive hunt for a decent, but cheap, set of wheels. It’s worth noting decent and cheap can be difficult to find in peaceful coexistence in the automotive jungle.
So what exactly is a lien?
A lien is a legal “encumbrance” registered on a person’s property to secure a debt the property owner owes to another person/business (commonly a bank/lender). In the case of a car loan, a bank (or finance company) will register a lien against the vehicle giving them the right to take possession of it should the borrower default on the loan and to sell the vehicle to recoup the outstanding debt.
So it’s really important you DON’T buy a vehicle with an outstanding lien!
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