Essential Tips for Buying a Car in Ontario: Stay Informed

Purchasing a vehicle, whether new or used, can be an exciting milestone. However, potential buyers in Ontario should proceed with caution and arm themselves with essential information before making this significant investment. The Ontario Motor Vehicle Industry Council (OMVIC) offers valuable resources and guidelines to help buyers navigate the complexities of the automotive market.

Understanding Your Rights as a Buyer

As the regulatory body overseeing vehicle sales in Ontario, OMVIC aims to protect consumers by ensuring that registered dealers comply with the law. One critical aspect to be aware of is the requirement for all advertisements from OMVIC-registered dealers to display the “all-in price” of a vehicle. This is mandated by the Motor Vehicle Dealers Act (MVDA) and means that the listed price must include all fees and charges, with the exception of the Harmonized Sales Tax (HST) and licensing fees.

When evaluating a vehicle’s price, buyers should confirm that all administrative costs, freight, pre-delivery inspections, and tire levies are factored into the final price. If the total on the bill of sale differs from the advertised amount, it is crucial to investigate further for potential discrepancies.

Verifying Vehicle Information

Before finalizing a purchase, it is essential to verify the vehicle’s history and basic details, particularly for used cars. Key information to check includes the make, model year, Vehicle Identification Number (VIN), odometer reading, and any required history disclosures. Under the MVDA, there are 22 mandatory disclosures that salespersons and dealerships must provide. These disclosures include critical facts such as whether the vehicle has been involved in any accidents exceeding $3,000, if it has undergone repairs, or if it has been utilized as a taxi, rental, or emergency vehicle.

Once you have identified a vehicle that meets your needs, consider your financing or leasing options carefully. OMVIC emphasizes the importance of reading all terms thoroughly. Key elements to review include interest rates, payment schedules, and total costs after interest, as well as any add-on products like rustproofing or extended warranties.

Commitment and Documentation

In Ontario, signing a contract signifies a legal commitment to the purchase. Buyers are encouraged to scrutinize clauses regarding refunds, damages, and cancellations before signing. It is vital to ensure that all agreements, including financing documents, are fully understood. Pay particular attention to cancellation policies and any potential liquidated damage clauses, which could result in significant fees or loss of deposit if you decide to withdraw from the deal.

It is important to document all aspects of the sale, as verbal promises are not legally enforceable. Any assurances made by a dealer, such as complimentary oil changes or delivery timelines, should be clearly included in the written contract. A well-drafted bill of sale should outline trade-in values, remaining loan balances, and any changes to the final price.

As OMVIC advises, clarity is crucial; only signed documents hold legal weight. Trusting your instincts and asking questions throughout the process can help ensure a successful transaction.

Buying a vehicle for the first time is an exhilarating experience. OMVIC plays a pivotal role in fostering a fair marketplace by overseeing more than 8,000 dealerships and 30,000 salespeople across Ontario. For more information about your rights and responsibilities as a buyer, visit the OMVIC website to stay informed and make educated decisions.