Buying or leasing a used car from a used car dealer
If you buy or lease a used car from a registered dealer, you are protected under the Motor Vehicle Dealers Act. You do not have this protection when you buy a car from a private seller, or from an unregistered or unlicensed dealer (known as a curbsider).
Used car dealers must be registered with the Ontario Motor Vehicle Industry Council (OMVIC). A registered dealer usually has a yellow-and-blue OMVIC sticker on their office door or window. You can also check on OMVIC’s website at omvic.on.ca or call 1-800-943-6002.
What are my rights before I decide to buy?
Before you buy or lease a used car, the law says the dealer must give you certain information, including:
- the make, model, style, colour, and year of the car
- the total number of kilometers the car has been driven
- if the car was used as a rental car, a police cruiser, taxi, or an emergency services vehicle
- if the car is now different from its original design and feature
- if there are problems with the car
- any other fact about the quality of the car that could affect your decision to buy it
Do I have to get it in writing?
Yes. The dealer must give you a written contract when you buy the car. This contract is usually called a purchase agreement. The contract must include:
- your name and address
- the dealer’s registered name, registration number, and the business address
- the salesperson’s registered name and registration number
- the date of the sale and the date the car is delivered
- the VIN number (Vehicle Identification Number)
- information about the total price, including all charges and taxes, and
- any deposit or down payment you made, and the balance due.
What if I change my mind?
You cannot cancel just because you changed your mind or because your situation has changed.
But you can cancel at any time within 90 days after you receive the car if the dealer did not tell you:
- the total mileage
- the make, model, or year
- that the car was used as a rental car, a police cruiser, taxi, or an emergency services vehicle
- that the car was ever declared or branded a total loss by an insurer
- that the car ever qualified as irreparable, salvage, or rebuilt
What if I was pressured or misled into purchasing the car?
Dealers are not allowed to use “unfair practices” to convince you to buy or lease a car. An unfair practice is any false, misleading, or unfair statement made by a seller. For example, if a dealer tells you that the car is better quality than it actually is.
If the dealer used any unfair practice, you can cancel at any time within one year after you signed the contract.
What if I have a problem with a dealer?
If you are having a problem with the dealer, the law says you must first try to resolve the problem directly with them.
It is a good idea to send the dealer a letter explaining your problem or concerns. Keep a copy for yourself. If you can, send the letter by registered mail or courier. That way you will have proof that the dealer got it.
You might want to have a different mechanic inspect the vehicle to confirm your concerns. You should also get a Used Vehicle Information Package from a Service Ontario office.
Filing a complaint with OMVIC
If you cannot reach an agreement with the dealer, you can file a complaint with OMVIC. OMVIC cannot force the dealer to do anything, but it will work with you and the dealer to try to find a solution. OMVIC also runs the Motor Vehicle Dealers Compensation Fund. This Fund can give you some or all of your money back in certain situations. To get more information, visit omvic.on.ca or call 1-800-943-6002.
If OMVIC does not solve your problem, you can also sue the dealer in Small Claims Court. If the amount you are asking for is $50,000 or less, you can file a claim in Small Claims Court. You must do this within 2 years of when you first knew about the problem.
For more information and help
See stepstojustice.ca/legal-topic/debt-and-consumer-rights and CLEO’s other consumer law resources for more information.
You can contact Consumer Protection Ontario for more information about your rights or for help making a complaint. Call 1-800-889-9768 or visit their website at ontario.ca/page/filing-consumer-complaint.
You can contact Pro Bono Ontario’s legal advice help line for up to 30 minutes of free legal help and advice. Call 1-855-255-7256.
Some community legal clinics can help you with consumer law problems. Visit legalaid.on.ca/legal-clinics or call 1-800-668-8258.
To find a lawyer or paralegal in your area who can give you a free 30-minute consultation, visit findlegalhelp.ca.
For a directory of lawyers and paralegals who provide help at reduced rates to financially eligible people, visit justicenet.ca or email info@justicenet.ca.