Use these buyer-friendly tips before purchasing a new or used car in Ontario
So, you’re getting your first set of wheels. Have you already imagined the car’s cherry-red colour? Or, the fuzzy dice hanging above the dash?
Not so fast! Before you put the keys in the ignition, slow down, get informed, and do some genuine research on the car before buying anything.
That’s where the Ontario Motor Vehicle Industry Council (OMVIC) can lend a real helping hand. As the province’s vehicle-sales regulator, OMVIC’s goal is to protect car-buyers by making sure registered dealers and salespersons follow the law.
Learn about your rights as a buyer when you’re in the market for a new or used vehicle. Ready? Follow these handy OMVIC tips for an easy-breezy car buying experience.
All-included price
Does the price sound too good to be true? In Ontario, all OMVIC registered dealer advertisements must display the “all-in price” of a vehicle, under the Motor Vehicle Dealers Act (MVDA). This law means the advertised price must include all fees and charges, except for HST and licensing.
Double-check that admin fees, freight, pre-delivery inspection, and tire levies are included in the final price. How to be sure? If the total price on your bill of sale doesn’t match what was advertised, something could be incorrect.
Get all the facts
Before hitting the open road, make sure your vehicle’s history and basic information have been provided and verified. This is crucial for used cars, as important information can change over time.
A vehicle’s make, model year, VIN, odometer reading, and history disclosures should be double-checked. A “disclosure” is a fact or detail about a vehicle’s past use, history, or condition. Required by law, this info must be provided by salespersons and dealerships under the MVDA.
Fact: There are 22 mandatory disclosuresĀ under the MVDA, which must be included as written statements in a vehicle contract, including if the vehicle was involved in any accident over $3,000, if it’s been rebuilt, or used as a taxi, rental, or emergency vehicle.
Read the fine print
Now that you’ve found your dream car, you might be thinking about financing or leasing options. One thing that OMVIC encourages buyers to do is read all terms carefully!
Look for interest rates, payment schedules, term lengths and dates, and the total cost after interest. Add-on products like rustproofing or extended warranties should also be clearly outlined.
Only sign once you are 100%
In Ontario, once you sign on the dotted line, you are legally committed to the purchase. This is why OMVIC encourages buyers to verify any clauses referring to refunds, damages, and cancellations.
The entire contract and any other related documents (financing agreements) should be signed only after you have read and understood the terms and conditions of the contract.
Pay close attention to whether a dealer allows for purchase cancellations and specifically look for any liquidated damage clauses, which outline potential fees. If a cancellation fee is included, it can be extremely hefty and can include the loss of your deposit.
Write it down
Anything important to know about a vehicle should be documented, since verbal promises are no guarantee and may not hold up if issues arise.
Even if a dealer throws in free oil changes, outlines delivery dates, or mentions easy repairs, always get it written into the contract. Important info like a bill of sale should clearly state the trade-in value, remaining loan balances, or changes to a final price.
Cross your T’s and dot your I’s, as OMVIC says; verbal promises or handshakes are not enforceable, only clear documents and signatures are.
OMVIC is here to serve and protect Ontario
Just like any important first decision, it’s always best to trust your gut and ask questions. While a new vehicle is always exciting, don’t get distracted by that new (or slightly used) car smell!
Designed to protect car buyers and ensure dealers are operating with integrity and fairness, OMVIC is responsible for administering and enforcing the MVDA with a view to having a well-informed vehicle sales marketplace by overseeing more than 8,000 dealerships and 30,000 salespeople across the province.
If your next road trip includes your first car, that’s so exciting! Just visit the OMVIC website to make sure you’re up to date and learn about your rights and responsibilities as a buyer.
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