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I'm having trouble with a used car I bought from a registered dealer. What should I do?
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I'm having trouble with a used car I bought from a registered dealer. What should I do?
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Debt and Consumer Rights - Buying a used car
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CLEO (Community Legal Education Ontario / Éducation juridique communautaire Ontario)
CLEO (Community Legal Education Ontario / Éducation juridique communautaire Ontario)
Ministry of Government and Consumer Services
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I'm having trouble with a used car I bought from a registered dealer. What should I do?
Reviewed:
December 31, 2016
Answer
The law says that first you must try to fix the problem by speaking directly with the dealer. The best way to do this is to write the dealer a letter about the problem with the car and send it to them by registered mail. If that doesn’t work, you can try other options.
The letter should be short, clear, and specific. Ask if they will agree to have the car repaired, or if they will give you a refund on all or part of the purchase price.
The letter should also give a specific date by which you expect to hear back from them.
Filing a complaint against a dealer
If you cannot resolve your problem with the dealer directly, you can file a complaint with the Ontario Motor Vehicle Industry Council (OMVIC).
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. If you and the dealer cannot come to a solution with OMVIC’s help, you may want to sue the dealer in court.
Motor Vehicle Dealers Compensation Fund
If you lost money because you bought a car from a registered dealer, you may be able to get money from the Motor Vehicle Dealers Compensation Fund. The fund can give you some or all of your money back, depending on the situation.
Reviewed:
December 2016
Get a different mechanic to inspect the car
It’s good to get a second opinion about your car’s problems from an independent mechanic. After they inspect your car, ask the mechanic to give you a written report.
A report from an independent mechanic can help you convince the dealer that the car has problems. If you choose to sue the dealer, the report can help you prove it in court.
Keep copies of all your receipts, invoices, cheques and credit card statements related to the car. These can help you prove that the problems with the car are real and how much they have cost you.
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Reviewed:
December 2016
Contact the dealer about the problem
You must try to solve the problem by speaking with the dealer before you try other options. The best way to do this is to write the dealer a letter about the problem with the car and send it to them by registered mail.
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 the problems you are having with the car
- 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
- 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.
Registered dealers have to comply with the Ontario Motor Vehicle Industry Counseil (OMVIC) code of ethics. Most of them will try to work with you to fix the problem.
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Ministry of Government and Consumer Services
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
Apply to the Motor Vehicle Dealers Compensation Fund
If the problem cannot be solved with the help of Ontario Motor Vehicle Industry Council (OMVIC), you may be eligible for financial compensation from the Motor Vehicle Dealers Compensation Fund.
Depending on your situation, the fund may give you some or all of your money back. For example, you might get some money back if:
- the dealer is bankrupt and owes you money
- the dealer fails to pay a court judgment, refund a deposit for a car or truck that it didn’t deliver, or honour a warranty claim
- the dealer is convicted of certain offences or has its licence revoked
- the dealer made false or misleading statements about the car or truck when selling it to you
- the car or truck was seized by the police
- the car or truck was seized because there was a lien on it
The most you can receive from the fund per car or truck is $45,000. You must make the claim within 2 years from the date you first learned of the problem.
For example, if:
- 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.
Before you apply to the compensation fund, you must first send a letter to the dealer by registered mail. The letter should be short, clear, and specific. The letter should also specify a time by when you expect to hear back from the dealer (5-7 days is reasonable).
To apply for compensation from the fund you must complete the Compensation Fund Application Package. Your claim forms must be signed and notarized. Your forms can be notarized by a notary public or lawyer.
You must include any supporting documents or evidence about your claim.
OMVIC staff will review your application. If it meets the requirements, they will prepare the claim for the Board of Trustees to consider. Once the Board of Trustees makes a decision, OMVIC staff will contact you. If your claim is rejected you can appeal to the Licence Appeal Tribunal.
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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 when you first learned about the problem.
For example, if:
- you bought a used car on December 1, 2013, and
- learned your car has a problem 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
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Ontario Ministry of the Attorney General
Reviewed:
December 2016