Buying a used car in Ontario can be a great way to save money, but it also comes with risks. Without proper inspection, you might end up with unexpected repairs and hidden problems. Here’s a checklist of 10 essential things to check before purchasing a used car to avoid costly mistakes. But first, let’s take a closer look at the legal side of buying a used car in Ontario.

Legal Aspects of Buying a Used Car in Ontario

When buying a car in Ontario from a registered dealer, you are protected by the Motor Vehicle Dealers Act (MVDA) and the Consumer Protection Act (CPA), including access to the Motor Vehicle Dealers Compensation Fund. However, private sales are not covered by these protections.

1

Buying a used vehicle from a Registered Dealer:

• OMVIC Registration: Ensure the dealer and salesperson are registered with the Ontario Motor Vehicle Industry Council (OMVIC).
• Check for OMVIC decal: Look for the blue and yellow decal on dealership doors and windows.
• Use OMVIC search: Utilize OMVIC’s search feature to verify registration.
• Ask to see registration: Request to see the dealer or salesperson’s OMVIC license.

2

Your rights under the Motor Vehicle Dealers Act (MVDA)

Under the Ontario Motor Vehicle Dealers Act (MVDA), key consumer rights include the right to all-in-price advertising, mandatory disclosures about a vehicle’s history and condition, cancellation rights for non-specified disclosures, and access to the Motor Vehicle Dealers Compensation Fund (MVDCF) for financial losses.

All-in-Price Advertising:

When an OMVIC-registered dealer advertises a vehicle, the price must include all fees and charges they intend to collect, except for HST and the actual cost of vehicle registration and plates, which must be clearly stated as not included. This helps protect consumers from hidden fees.

Mandatory Disclosures:

• Car buyers are entitled to full disclosure of a vehicle’s past use, history, and condition, as well as any material facts that could influence their decision to purchase.
• Dealers must disclose if a vehicle has been used as a police vehicle, emergency services vehicle, limo, taxi, or daily rental (unless subsequently owned by someone other than a dealer).
• They must also disclose if a vehicle has been branded (irreparable, salvage, or rebuilt) and how it was last classified, and the actual distance the vehicle has travelled, or make an appropriate disclosure statement if that cannot be determined.

Cancellation Rights:

• If a dealer fails to make specified disclosures, a car buyer may be able to cancel the contract within 90 days of delivery of the vehicle.
• This applies to disclosures regarding the vehicle’s previous use as a taxi, limo, police vehicle, emergency service vehicle, or daily rental, as well as its make, model, and model year, branding, and actual distance travelled

Access to the Motor Vehicle Dealers Compensation Fund (MVDCF):

You can access the Motor Vehicle Dealers Compensation Fund if you suffer a financial loss due to a purchase from a registered dealer.

Warranty:

Dealerships are required to provide a mandatory warranty on certain components of a used vehicle, typically covering specific vehicle components for a period of 30 days or 1,500 kilometers, whichever comes first.

3

Your rights under the Consumer Protection Act (CPA):

When buying a used car in Ontario from an OMVIC-registered dealer, you have rights under the Consumer Protection Act (CPA) and Motor Vehicle Dealers Act (MVDA), including the right to full disclosure of the vehicle’s history and condition, all-in-price advertising, and the ability to cancel the contract within 90 days if certain disclosures are missing or inaccurate.

However, you have to know about these two very important things:

1. There is no cooling-off period for motor vehicle contracts in Ontario, so be sure of your decision before signing.
2. Private Sales: Consumer protection legislation only applies when buying from an OMVIC-registered dealer, not in private sales.

10 Things to check before buying a used car in Ontario

1

Mandatory disclosures of vehicle history and key features

Dealers are obligated to disclose a vehicle’s true condition and history, including structural and flood damage, and the cancellation of the manufacturer’s warranty. In addition, when advertising, specific vehicle’s past use as a taxi or police cruiser, which often entails harder driving, must be disclosed.

Start by getting a vehicle history report from services like Carfax or AutoCheck. This report provides crucial details about:

• Past accidents or major repairs
• Odometer discrepancies
• Title status (clean, salvage, or rebuilt)
• Number of previous owners
• Any recalls or theft reports

2

Exterior Condition

Inspect the car’s body for dents, rust, scratches, or mismatched paint, which could indicate past accidents. Check for even gaps between panels—uneven spacing could mean previous repairs. Also, look under the car for signs of rust or fluid leaks.

3

Interior Condition

A clean and well-maintained interior is a good sign. Check for:

• Seat and upholstery wear or stains
• Functioning dashboard lights and controls
• Working air conditioning and heating
• Any foul smells (like mildew, which could indicate water damage)

4

Tires and Wheels

Uneven tire wear can be a sign of alignment issues or suspension problems. Ensure all tires have enough tread and no visible cracks. Check the spare tire and jack as well.

5

Engine and Under-the-Hood Inspection

Pop the hood and look for:

• Oil leaks, corrosion, or loose wires
• Clean engine components (excessive dirt or oil buildup can indicate neglect)
• Proper fluid levels (oil, transmission, brake, coolant)
• Unusual noises when the engine is running

6

Test Drive the Car

A test drive is crucial for spotting potential mechanical issues. Pay attention to:

• How the car accelerates and brakes
• Steering responsiveness and alignment
• Any unusual noises (knocking, grinding, or whining)
• Transmission smoothness (no jerking or hesitation)

7

Check the Brakes

Test the brakes in different conditions. Soft or spongy brakes, vibrations, or screeching sounds indicate issues that may require costly repairs.

8

Examine the Mileage

Compare the car’s mileage to its age. An average car is driven about 12,000–15,000 miles per year. Extremely low or high mileage can both be red flags. High mileage means more wear, while very low mileage on an old car could suggest long periods of inactivity, which can cause mechanical issues.

9

Inspect the Lights and Electronics

Turn on all lights, including headlights, brake lights, and turn signals. Test the power windows, locks, infotainment system, and all electrical features. Malfunctioning electronics could indicate wiring or battery issues.

10

Get a Pre-Purchase Inspection

Before committing, take the car to a trusted mechanic for a professional inspection. They can spot hidden issues that aren’t obvious to the untrained eye, potentially saving you from expensive repairs later.

Doing your due diligence before buying a used car can save you thousands in repairs and headaches. Always inspect the vehicle thoroughly, get a history report, and invest in a pre-purchase inspection. A little caution now will ensure you drive away with a reliable car instead of a costly mistake!

Common Costly Mistakes When Buying a Car and How to Avoid Them

Despite the protections in place, consumers often make mistakes that can lead to unnecessary expenses. Being aware of these pitfalls can help you navigate vehicle purchases and repairs more effectively.

1

Not Conducting Thorough Research

One of the most common mistakes is failing to research the vehicle’s history and market value. This oversight can lead to overpaying or purchasing a vehicle with hidden issues. To avoid this:

• Use Vehicle History Reports: Services like Carfax can provide comprehensive reports on a vehicle’s history, including past accidents, ownership history, and maintenance records.
• Compare Prices: Research similar vehicles in the market to ensure you’re getting a fair deal.
• Inspect the Vehicle: Consider hiring a trusted mechanic to inspect the vehicle before finalizing the purchase, especially when buying used cars.

Overlooking the Fine Print

Contracts and repair agreements often contain terms and conditions that consumers may overlook. Not understanding these terms can lead to unexpected costs. To mitigate this:

• Read All Documents Carefully: Ensure you understand all aspects of the agreement before signing.
• Ask Questions: If any terms are unclear, seek clarification from the dealer or repair shop.
• Get Everything in Writing: Verbal agreements may not hold up in disputes, so always have important terms documented.

Not Budgeting for Additional Costs

Buying a vehicle involves more than just the sticker price. Consumers often forget to factor in:

• Taxes and Licensing Fees: Ensure you account for HST and registration fees.
• Ongoing Maintenance: Budget for regular maintenance such as oil changes, tire replacements, and brake servicing.
• Insurance Costs: Insurance premiums can vary widely based on the vehicle’s make, model, and your driving history.

Skipping Vehicle Inspections before Purchase

Many buyers trust sellers too easily and skip professional inspections. This can lead to expensive repairs later. To avoid this:

• Request a Pre-Purchase Inspection: A licensed mechanic can identify hidden problems before you buy.
• Check for Recalls: Verify if the vehicle has any outstanding manufacturer recalls that need to be addressed.

The 2023 Consumer Protection Act strengthens your rights when buying or repairing a vehicle in Ontario, but it’s up to you to be proactive and informed. By understanding the laws and avoiding common costly mistakes, you can ensure a smooth car-buying and repair experience while protecting your hard-earned money. Always research, read agreements carefully, and never hesitate to ask questions before making any commitments.