In our final Understanding Contract series, we’ll finish by reviewing two final sections.

Trade-In Description

This section should be filled out if you are trading in a vehicle. It will include your vehicle’s details (e.g. VIN, mileage), the amount the dealer is paying for your old vehicle, and information about any outstanding loan balances.

The Acceptance of Terms

This is the shortest section of a contract, but arguably, the most important. Both you and the dealer will sign here meaning you are legally agreeing to purchase the vehicle based on the contract’s terms.

 

The next section we’ll review is the Basic Vehicle and Options Section. Though short, this is where you will find Optional Extras such as trim packages or other upgrades that might include leather upholstery, heated seats or audio systems. Ensure when you read the contract all additional features you requested on your vehicle are listed.

In the Purchase Price and Payment section of a contract, you can expect to find itemized fees like freight and air conditioning (if you are purchasing a new vehicle), administration (if the dealer charges one) and the OMVIC fee. This is also where you should see your old vehicle's value if you are trading it in.  The terms below are meant to provide a general overview of car contract terminology – the corresponding prices are examples only.  Note: not all terms listed here may be on your contract. Contracts vary depending on whether you’re buying a used or new vehicle.

Vehicle purchase agreements or contracts can be confusing. To help you feel more confident, we will look at each contract section and explain the terms, so you can better understand the document you may agree to sign.

This week, we will focus on the Vehicle Description Section, typically found at the top of a car contract. In the graphic below, each term is numbered so it corresponds with the numbered definition below.

Recently, OMVIC received this question: “I was planning to buy a used car, but my financing didn’t get approved, can I get my deposit back?"

Let’s assume that the person who wrote this question, signed a contract and the dealer was to arrange financing.

How did Black Friday — the day of mega-amazing colossal unbelievable can’t-be-beat blow-out sales signifying the unofficial start of the Christmas shopping season — get its name? Some would say Black Friday marks the point many retailers turn a profit for the year, going from being “in the red” to being “in the black.” The more cynical among us might argue it’s consumerism run amok and a black mark on our society.  Though the origins of the name may be debatable, the lure of Black Friday is undeniable.

 

Two friends at a café:

Scott: Why do you look so happy?

Dee: I’ve met someone perfect—kind, thoughtful and romantic.

Scott: You say that after every date!

Dee: But this one’s different! He’s seen me wearing my mouth guard and he doesn’t care that I can’t cook. I have finally found unconditional love!

Ah, the elusive unconditional love; while it may be what so many of us long for, it is not the type of love you should pursue when you buy a vehicle. To put it bluntly: steer clear of falling in unconditional love with a car. In fact, when buying a car, conditions can be your best friend.

 

You've signed on the dotted line and taken possession of your new vehicle—congratulations! It was everything you dreamed of and more.

Suddenly you discover that 2018 Nissan 370Z Coupe has 3,000 more kilometres on it than what’s noted on your bill of sale.

Can you cancel the contract and take it back?