New Used Car Giving you Trouble? Here are some solutions (Canadian version)

So you bought a new used car and decided to trust the seller with some of the information that was provided, but are now faced with a mini crisis that will cost a whole lot of money to solve. Not to worry, we have you covered. Keep reading to find out tips and tricks to try to assist you through this time. 

Well first things first, clearly my “In the market for a new car? Here’s some tips and tricks – and even the BEST time to buy – that is important to keep in mind” post didn’t make it to you in time. But don’t worry about that. Still worth the read after you get out of this problem though. 

This brings me to Tip/Trick #1: Always ask for a vehicle history report 

For those of you who don’t know, a vehicle history report can reveal very important information about the car’s past. This way if the seller isn’t being truthful of every accident/issue with the car, you will get to know first hand. Through the vehicle history report, you will also get to learn the uses of the car (i.e taxi, rental). It is important to note that any undocumented work (i.e illegal extensions) may not be reported and in this case it may be wise not to go for a car that looks like it’s been illegally modified.  

Solution #1: If you do find yourself in this situation however, you need to try and contact the person that sold you the car to really get an understanding of what to do next. If the seller is unreachable or you don’t feel comfortable enough you can always go to www.CarFax.ca or even www.AutoCheck.com to get one as soon as possible using the VIN number. On CarFax you can expect to pay $54.95 (CDN) for just the report but there are other options that provide more information if needed (of course that comes at a price though). Check out their website for more information. You can also take the vehicle to your trusted mechanic for a second opinion as well if you feel like it’s necessary.

Tip/Trick #2: Beware of your consumer rights 

Consumer rights apply to every purchase made nowadays, it just looks slightly different depending on what you are planning on buying. In Ontario, consumers have several key rights (again this will depend on your province/territory that you live in) according to the official government website www.Ontario.ca. We will be going through some of the points below although all may not be mentioned. I urge you to direct your attention for the rest of the list to the website linked above. 

• Right to Cancel (in certain situations) – If a dealer fails to disclose pertinent information regarding the car, a buyer may have the right to cancel the contract 
• No Cooling Off Period – There is an automatic no “cooling off” period after the used car purchase contract is signed in Ontario which really means you need to know what you are getting into before signing anything 
• All-In-Price Advertising – If a dealer advertises a price, all fees and charges must be included, excluding HST and licensing of course, which also must be clearly stated that it is not included 
• Right to Understand Terms – Consumers should receive a full clear explanation of the purchase terms, including things like costs, and financing/leasing options, before an agreement is made to proceed with the purchase   

Solution #2: Okay so now you bought the car and didn’t exactly do everything from the list above or from the governments website, and of course there’s an issue, so what are you going to be able to do about it? Well first things first, the whole “Cooling Off Period” point was missed on your side but not to worry, there are a couple of things you can do. You can start by hiring a lawyer to represent you in small claims court or to seek legal advice on how to proceed. But just a really important thing to note about the “Cooling Off Period”, it does not apply to the situation when there are undisclosed defects or misrepresentations. Now when it comes to handling things like this, even if unintentional, it can lead to the dealer being held liable for the damages. This statement will apply to “as-is sales” as well unless specific disclosures are made. If all else fails or you feel like you really want to take your issue further you can always contact OMVIC (the Ontario Motor Vehicle Industry Council) to obtain further assistance.  

Tip/Trick #3: Test Drive the Car Before Making the Purchase 

Of all of the tips and tricks you will read out there and on this list, this one might by far be the most wisest. Test driving a car as you can tell from the article I posted previously is so important in helping to make the decision. Test drives allow for the driver to experience actually driving in the vehicle before agreeing to anything further. Now it is important to note that the seller, whether a dealer or a private seller, can legally refuse for you to test drive the vehicle, although it may be in their best interest to allow for it. They can also offer something called a demonstration drive where they are in the vehicle themselves with the potential buyer while all of this is happening. 

Solutions #3: If the car is purchased and you didn’t get a test drive and now you are discovering potential problems (that would have been obvious enough to be seen in the test drive) you need to contact the seller. If this doesn’t work or you don’t feel comfortable enough to do so, the next step would be to get a pre-purchase inspection from a trusted mechanic and ensure everything is documented. In this case, if the problems are significant you may be able to cancel the agreement or negotiate a lower price. 

For those of you who don’t know, a pre-purchase inspection is typically something that is done before the purchase is made although can still be done after in some cases as well. Also known as PPI, it is a thorough inspection of a used vehicle (or other asset like a house, or an aircraft) that is performed by a qualified professional before the purchase is finalized. The purpose is to highlight potential problems or issues to the buyer so that there are no surprises down the road. 

Final Thoughts

Now that you made it to the end of the article we hope we have helped you solve your problem. The tips/tricks and solutions suggested above are just a couple of ways to help you out and although sound promising they aren’t always are. Make sure to always do your research and if you don’t know much about buying used cars, talk to your trusted mechanic, friend, or family member to help you out.