What do you do next?
As a car buyer, knowing your consumer rights can help protect you from making a deal you might not be happy with. Read the following car buying scenarios and decide what to do next.
You’re buying a vehicle, but when the bill is prepared, you see the dealer has added a licensing fee, HST and a dealer preparation fee on top of the advertised price.
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The dealer has prepared a contract, but you mention that you’re going to run the deal by your parents within the 24-hour “cooling off period.” The dealer tells you that the law doesn’t entitle you to a cooling off period.
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In Ontario, for a cash purchase, only HST and licensing can be added to the dealer’s advertised price, and the advertisement must clearly state that these charges are extra. Insist that the “dealer preparation fee” can’t be added to your bill.
Under the Ontario Consumer Protection Act there
is no cooling-off period for buying a car, unless you both agree to add a cooling-off clause to the contract. Once you and the dealer sign the contract, it becomes a legally binding document.
When buying a used vehicle, the Ontario Motor Vehicle Dealers Act requires dealers to disclose if
the vehicle was in an accident where damages exceed $3,000 — in writing. Heavily damaged vehicles can be safety hazards, so written disclosure allows you to make an informed decision. The consumer should inquire about the accident, and ask to see repair records, so they can make an informed decision about the purchase.
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As the salesperson prepares the bill, you see on the contract that the car was involved in a collision, but that the previous owner spent $4,000 to repair it.
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