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Buying a used car? Find out what mandatory disclosures you need to know.
As the scent of freshly sharpened pencils and the promise of new beginnings fill the air, the back-to-
school season is upon us once again. For many, this time of year marks more than just a return to classrooms; it’s also a perfect moment to consider purchasing a vehicle, whether it’s for a college-bound
student or a family gearing up for another year of activities. However, before you dive headfirst into the
exciting world of car shopping, it’s essential to understand the critical role that Ontario’s Motor Vehicle
Dealers Act (MVDA) plays in ensuring your purchasing experience is both transparent and secure.
The MVDA, administered and enforced by the Ontario Motor Vehicle Industry Council (OMVIC),
mandates a series of disclosures that all used car dealers must make. These disclosures amount to 22
crucial details about a vehicle’s history, ranging from any accidents it may have been involved in, to its
previous intended use. This level of transparency is designed to empower consumers, allowing them to
make informed decisions that align with their needs and budget.
Price transparency and caution before commitment
In addition to these mandatory disclosures, the MVDA enforces all-in price advertising, guaranteeing that
the price displayed (with the exceptions of taxes and licensing) is the final price you’ll pay, sparing you
from any last-minute surprises. However, it’s important to note that there is no cooling-off period after
signing a contract in Ontario. Therefore, the onus is on you to carefully consider your decision before
putting pen to paper.
Putting it in writing: disclosures and dealership responsibilities
Dealers are required by law to provide these essential details in writing on the contract, eliminating any
ambiguity and ensuring that you have a concrete record of the information shared. Concealing
information not only breaches legal regulations but can also lead to administrative penalties for dealers.
Among the many details to be shared, incidents resulting in over $3,000 in damage must be part of the
disclosure package. As a consumer, having access to this information enables you to gauge the vehicle’s
safety and its potential impact on its resale value.
Tools for verification
When it comes to verifying a vehicle’s history, accidents, and odometer readings, tools like Carfax come
in handy. This service provides comprehensive reports that serve as a valuable resource in evaluating a
vehicle’s past. While dealers aren’t obligated to provide this report for free, many of them do, or at a
minimal cost. As a consumer, you may also run your own report before the dealer even looks at the
vehicle, so long as you have the VIN (vehicle identification number).
Undisclosed information can affect the value of the vehicle you’re considering. In situations where
discrepancies arise, OMVIC can provide you with assistance.
OMVIC can offer an array of resources to aid car buyers. From educational services to webinars, OMVIC
is committed to arming consumers with the knowledge they need to navigate the car purchasing journey
with confidence. Their monthly newsletter provides updates on consumer car-buying rights.
So, as you gear up for the back-to-school rush, don’t overlook the importance of making an informed car
purchase. The MVDA, with its mandatory disclosures and consumer-focused provisions, acts as your
guiding compass in the automotive world.
Explore your options with OMVIC
Purchasing from an OMVIC-registered dealer offers the assurance of a regulated and transparent
transaction, emphasizing the potential hazards of private purchases. Most of the time with an OMVIC
dealer, consumers benefit from legal protections, accurate vehicle information, and avenues for recourse
in case of issues. This highlights the contrast in risk when compared to the uncertainties often associated
with private sales.
To learn more about the protections afforded to you under the Motor Vehicle Dealers Act and resources
when purchasing from an OMVIC-registered dealer, visit omvic.ca. (omvic.on.ca) For advice and
answers to all your car buying questions, reach out to OMVIC’s consumer support team at
[email protected] or 1-800-943-6002. Plus, explore their free education services and webinars
by emailing [email protected].
Stay connected and updated on all things OMVIC by following them on social media:
Facebook: Ontario Motor Vehicle Industry Council (OMVIC)