The Cost of a “Good Deal” When Buying a Car

This article is the second instalment in OMVIC’s Financial Considerations series, which explores the true costs of buying a vehicle in Ontario and how to protect yourself from financial loss. 

With the holiday season quickly approaching, many Ontarians are feeling the strain of rising expenses and may be tempted to cut costs wherever possible, including when purchasing a vehicle. While a private sale might seem like a good way to save money, it can come with serious financial risks. Many so-called “private sellers” are curbsiders, illegal, unregistered sellers who often misrepresent vehicles and offer no legal protections.  

Curbsiders don’t follow these rules. What may look like a bargain can quickly turn into a costly financial setback, especially when hidden damage or unpaid liens surface after the sale. All dealers and salespersons must be registered with OMVIC and follow strict consumer protection rules and can offer safe, regulated financing. In addition, OMVIC can only assist consumers who have purchased their vehicle, new or used, from a registered dealer.   

What is a Curbsider?

A curbsider is an unregistered individual who illegally sells vehicles for profit. They often use fake names, multiple phone numbers, and provide misleading online advertisements. Curbsiders may claim to be selling their “own car” or a “family member’s car,” but are frequently selling vehicles that have significant hidden financial and safety risks. 

The Hidden Financial Costs

Curbsiders frequently sell vehicles with serious issues, often concealed at the time of sale. These problems can include: 

• Odometer tampering: The mileage may have been rolled back to make the car seem newer. 

• Undisclosed accidents: The vehicle may have been insurance write-offs and poorly repaired.  

• Stolen vehicles: Many stolen vehicles are re-VINned and then resold to unsuspecting buyers. When these vehicles are seized by police, the consumer often has little to no recourse to recoup their financial losses.  

• Salvaged vehicles: Some vehicles are salvaged and rebuilt with stolen parts at chop shops. Buyers may unknowingly drive these cars, unaware of the risks hidden beneath the hood. If police discover that a vehicle bought from a curbsider contains stolen parts, the buyer could lose both the parts of the car that are found to be stolen and the money they paid for it. 

• Outstanding liens: If you buy a vehicle with an outstanding lien (loan) from a curbsider, you may be responsible for paying off the debt, and the lender could repossess the vehicle if the debt isn’t paid. 

Because curbsiders operate outside Ontario’s consumer protection laws, you have little recourse if something goes wrong. That “bargain” car could end up costing you thousands in unexpected repairs, or worse, you could lose the vehicle entirely if it turns out to be stolen, contain stolen parts or have outstanding loans against it.  

How to Spot a Curbsider

Before you buy, look for warning signs: 

• The seller refuses to meet at their home or provide ID. 

• The name on the vehicle’s ownership does not match the seller’s ID. 

• The car is listed multiple times online with different contact numbers. 

• The price is much lower than similar vehicles. 

• The seller discourages you from getting a vehicle history report or inspection. 

Protect Yourself from Fraudulent Ads

Fraudulent ads often use real photos or details from legitimate listings. Watch out for ads that: 

• Offer vehicles well below market value. 

• Use vague or rushed communication. 

• Ask for deposits before you see the car. 

• Include stories meant to pressure you (“I’m moving tomorrow,” “Need cash fast”). 

Always take your time, ask questions and trust your instincts. 

How to Buy Safely

The safest way to buy a car in Ontario is through an OMVIC registered dealer. These dealers must follow strict rules under the Motor Vehicle Dealers Act, such as accurately reporting mileage, clearing all liens, and disclosing the vehicle’s full history. If something goes wrong, you have access to OMVIC’s consumer protection services and may be eligible to apply to the Motor Vehicle Dealers Compensation Fund. 

A Final Reminder

A curbsider’s deal might look good on paper, but hidden costs can turn that “cheap” car into a financial nightmare. Protect yourself, your investment and your peace of mind by slowing down the buying process and purchasing only from OMVIC registered dealers. A “good deal” should never come at the cost of your financial security.