Ontario Motor Vehicle Industry Council
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Can I change my mind about buying a used car?
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Can I change my mind about buying a used car?
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Debt and Consumer Rights - Buying a used car
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Ontario Ministry of Government and Consumer Services
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Can I change my mind about buying a used car?
Reviewed:
December 31, 2016
Answer
In most cases, no.
There is no cooling off period when you buy a used car from a dealer. This means you usually cannot change your mind after you buy a used car. It is better to inspect the car carefully before signing a contract instead of trying to cancel a contract after it is signed.
There are a few situations when you can cancel the contract. For example, a contract can be cancelled within 90 days of when you receive the car if the dealer did not tell you the total mileage on the car or that the car was used as a daily rental car, police cruiser, taxi or emergency vehicle.
If the dealer made false or misleading statements about the car, you can cancel the contract within one year of when you signed the contract. Making false, misleading or deceptive statements in order to sell a car is known as an unfair practice.
Sometimes the dealer may agree to cancel the contract if you ask them to before you take possession of the car. If they do, they may refund all or only part of your deposit. A dealer may decide to use part of your deposit to pay for their expenses. Some examples of these expenses are:
- advertising
- administrative costs
- lost profits
Figure out if you can cancel your contract within 90 days
A contract can be cancelled within 90 days of when you receive the car if the dealer did not tell you:
- the total mileage on the car
- the make, model or year of the car
- that the car was used as a daily rental car, police cruiser, taxi or emergency vehicle
- that the car was ever declared or branded a total loss by an insurer
- that it was considered un-repairable or suitable for salvage, or
- that the car was rebuilt
Within one year
You can cancel the contract within one year of when you signed it if the dealer made false or misleading statements about the car. Making false, misleading or deceptive statements in order to sell a car is known as an unfair practice.
For example, a dealer must not tell you that:
- the car is of better quality than it really is
- the car is only available for a limited time, if that is not true
- you are getting a special price or benefit, if it is not true
Unfair practices also happen when a dealer:
- takes advantage of language difficulties that you may have
- takes advantage of physical, mental, or emotional disabilities that you may have
- charges far more than what is reasonable for the car
- pressures you to buy a car that the dealer knows you cannot afford
If the dealer used an unfair practice to get you to buy the car, and you are within 1 year of when you signed the agreement, you can cancel it.
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Ontario Motor Vehicle Industry Council
Reviewed:
December 2016
Tell the dealer you want to cancel the contract
If you believe you have a right to cancel the contract, tell the dealer with a letter that you want to cancel it.
You can use a sample cancellation letter or write your own. Send your letter by registered mail so you can make sure that the dealer got it.
Your letter should include the following information:
- your name and address
- the date
- the name of the dealer’s company and their address
- the date you purchased the car
- the make, model, year, and vehicle identification number of the car
- how much you paid for the car
- a detailed description of why you think you can cancel the contract
- the date by which you want a response from them (5-7 days is reasonable)
Be sure to include the following things with your letter:
- evidence, like copies, not originals, of receipts, invoices, contracts, or other relevant documents, and
- your signature and the date.
Keep a copy of your letter and your registered mail receipt so that you have proof that the dealer got your letter.
Keep your letter clear, short, and specific.
You May Also Need
Ontario Motor Vehicle Industry Council
Reviewed:
December 2016
Make a complaint
You might be able to complain to the Ontario Motor Vehicle Industry Council (OMVIC) or the Ministry of Government and Consumer Services.
Before making a complaint, you must first send a letter to the dealer through registered mail. If you are not happy with the dealer’s response to your letter, you might be able to file a complaint with OMVIC or the Ministry.
OMVIC
You might be able to complain to OMVIC if the dealer did not give you all mandatory disclosure.
There are three ways to do this:
- online: OMVIC Complaint form
- call: Complaints and Inquiries Department at 1-800-943-6002 x5105
- email: Complaints and Inquiries Department at consumers@omvic.on.ca
After you file your complaint, you will need to fill out a Complaints Process Acknowledgement Form. This allows OMVIC to contact the dealer directly.
OMVIC cannot tell a dealer to cancel a contract, return money, or do repairs. Instead, OMVIC works with you and the dealer to find a solution to the problem. If you and the dealer cannot come to a solution with OMVIC’s help, you may want to sue the dealer in court.
In some cases, OMVIC may investigate the dealer and take away (revoke) or suspend the dealer’s licence. If a dealer did something against the law, it can lead to criminal charges.
Get more information about this process on OMVIC’s website.
Ministry of Government and Consumer Affairs
If the dealer used an unfair practice, you might be able to file a complaint with the Ministry of Government and Consumer Services.
The Ministry can look into complaints and can order the seller to follow the rules. The Ministry can also take the seller to court for violating the Consumer Protection Act. If the seller is found guilty, they can get a warning, a fine, or even be sent to jail, and they may be ordered to pay some money to you.
To contact the Ministry for more information:
- online: www.ontario.ca/mcs
- call: 1-800-889-9768
- email: consumer@ontario.ca
Or you can mail:
Ministry of Government and Consumer Services
Consumer Protection Branch
5775 Yonge Street, Suite 1500
Toronto, ON M7A 2E5
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Ontario Motor Vehicle Industry Council
Reviewed:
December 2016
Think about going to court
If the Ontario Motor Vehicle Industry Council (OMVIC) cannot help you solve your problem, you can sue the registered dealer in Small Claims Court.
If you are asking for $35,000 or less, you can file a claim in Small Claims Court. You must file your claim within 2 years of the date when you first learned about the problem.
- you bought a used car on December 1, 2013, and
- learned it had been used previously as a rental car on September 14, 2014
then the last day you could file a claim would be September 14, 2016.
You do not need a lawyer to represent you in small claims court. But, talking to a lawyer can help you understand the court process.
The Ministry of the Attorney General has a self-help guide for Small Claims Court on its website.
If you want to sue for more than $35,000, you have to do this in Superior Court. It's very hard to do this without a lawyer. If you want to sue in Superior Court, you should try to get legal help.
If you have a low income, you might be able to get help from Pro Bono Ontario for cases in Small Claims Court or Superior Court.
There are some reasons why you might not want to sue in court, including:
- you have to pay court fees
- if you lose, the court could order you to pay some of the dealer’s legal costs
- it's complicated and a lot of work for you, especially if you don’t have a lawyer
- it usually takes a lot of time
- if you win but the dealer doesn't pay, it's up to you to try to collect the money
You May Also Need
Ontario Ministry of the Attorney General
Reviewed:
December 2016