Buying a car requires research, knowledge and careful deliberation as it is one of the biggest purchases you’ll ever make. It’s important to know what your protections are.
In Ontario, when you buy from a dealer who is registered with OMVIC, you are protected by the MVDA. If you purchase privately and something goes wrong, we cannot assist and you cannot make a claim to the Motor Vehicle Dealers Compensation Fund (MVDCF).
The Code of Ethics is a basic requirement of the MVDA which states that motor vehicle dealers must conduct business with honesty, integrity and in a financially responsible manner, in accordance with the law.
The Motor Vehicle Dealers Compensation Fund (MVDCF) is available to car buyers who purchase from an OMVIC registered dealer. It reimburses eligible car buyers who have suffered a proven financial loss related to a vehicle purchase, lease or consignment transaction. This consumer protection program is funded by Ontario’s dealers. If the fund drops below $3 million, dealers must make a payment to cover any shortfall.
People who buy from OMVIC registered dealers have the right to all-in pricing.
If an advertisement includes the price of a vehicle, that price must include all fees and charges the dealer intends to collect. HST and licensing (actual cost of vehicle registration and plates) do not have to be included in the price so long as the ad clearly states they are not included.
Mandatory disclosures under the MVDA
Car buyers are entitled to full disclosure of a vehicle’s past-use, history and condition as well as all material facts that could otherwise change the mind of the individual entering into the contract.
Cancellation rights (for non-specified disclosures)
If a dealer does not fully disclose specified information about a vehicle, a car buyer may be able to cancel the contract.
If a car buyer suffers a financial loss arising from a transaction with an OMVIC registered motor vehicle dealer, they may be eligible to make a claim to the Motor Vehicle Dealers Compensation Fund (MVDCF).
The following regulations are overseen by the Ministry of Public and Business Service Delivery and Procurement and the Ministry of Transportation. OMVIC can use these regulations in situations related to the motor vehicle industry when certain conditions are met.
