September 2008

CONSUMER PROTECTION

Is there a cooling off period when I purchase a vehicle?

questionmark Before signing a vehicle contract, make sure you read and understand its contents. If not, ask questions. Also make sure the vehicle you’re purchasing is really the one you want. Don’t sign anything until you are ready to commit; once you pay a deposit and/or sign a contract, you have agreed to purchase (or lease) that vehicle. Remember, your agreement with the dealership is a legal and binding contract that you have entered into. Under Ontario law, there is NO “cooling off” period when buying or leasing a motor vehicle, so if you happen to change your mind about the vehicle after you sign your contract, you may not be able to get your deposit back, and the dealer may even choose to exercise its rights to force you to accept delivery of the vehicle!. More tips here.

INDUSTRY HEADLINES

Barrie Dealer sentenced to three years in jail

flood Former Barrie-area R.V.dealer Donald Earle recently plead guilty to 190 counts of fraud and was sentenced to three years in prison. OMVIC originally revoked Earle’s licence to operate his R.V. dealership in 2005 after receiving a string of consumer complaints. Customers left vehicles with Earle to sell on consignment, but proceeds from the sales were never given back to the owners. It is estimated Earle bilked consumers out of $2 million. Read more here.

HAVE YOU HEARD?

New Legislation on the way

The Ministry of Small Business and Consumer Services announced the Motor Vehicle Dealers Act, 2002 (MVDA 2002) will become law on April 1, 2009. The MVDA 2002 was introduced by the Ministry to enhance consumer protection laws and strengthen confidence in the market-place. The current Motor Vehicle Dealers Act, as well as the new MVDA 2002, governs the business practices of Ontario’s motor vehicle dealers and salespeople, and is enforced by OMVIC. More information on how the Act benefits you will be delivered in coming issues of Consumer Line.

Auto Talk

Consignment sale – In a consignment deal, a vehicle owner gives the vehicle to a dealership to sell. Once sold, the dealership gives the money to the owner and keeps a fee. Con-signments can be arranged between a dealership and a con-sumer or between two registered dealerships. A consignment agree-ment should be completed and signed by both parties.

If you have any questions, comments or suggestions for Consumer Line, email us at consumerline@
omvic.on.ca and let us know what you think!

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Consumer Line is a monthly publication by the Ontario Motor Vehicle Industry Council - OMVIC, and is sent to you because you have requested it. If you have received this e-mail in error, or prefer not to receive more issues, you can unsubscribe at any time by following the link below.

OMVIC is the self-management organization of the motor vehicle dealer industry and administers the Motor Vehicle Dealers Act -- a public protection statute -- on behalf of the Ministry of Small Business and Consumer Services. OMVIC's mandate is to maintain a safe and informed marketplace by ensuring registration of motor vehicle dealers and salespeople, regularly inspecting all of Ontario's 8,800 dealerships, maintaining a complaint line for consumers and conducting investigations. OMVIC also administers the Motor Vehicle Dealers Compensation Fund.