How to avoid buying a lemon in Ontario

Purchasing a car in Ontario is a significant investment and protecting yourself from buying a “lemon”—a vehicle with hidden defects—is crucial. Ontario’s automotive industry is regulated by the Ontario Motor Vehicle Industry Council (OMVIC), working to safeguard car buyers’ rights. Knowing what to look out for, and understanding the legal protections in place, can help you make an informed decision and avoid potential pitfalls. 

Under the Motor Vehicle Dealers Act (MVDA), which sets out the rules for registered dealers and salespersons in Ontario. Under this legislation, dealers are required to provide mandatory disclosures about a vehicle’s history and condition. This includes details like previous use (such as a taxi or rental car), any damage over $3,000, branding status (for example, salvage or rebuilt), and accurate odometer readings 

Beware of curbsiders 

One of the biggest risks in the car-buying process is dealing with curbsiders—unlicensed sellers who pose as private individuals but are actually in the business of selling vehicles. Curbsiders often sell vehicles with undisclosed issues, including those that have been in accidents or have rolled-back odometers. 

Curbsiders operate outside the law and are not bound by the strict standards imposed on registered dealers, often failing to provide the crucial disclosures that protect buyers. This puts you at a higher risk of buying a lemon. To avoid curbsiders, always verify the seller’s identity and check if they are a registered dealer through OMVIC’s website. If the deal seems too good to be true, it probably is. 

Steps to protect yourself 

Research and verify: Before purchasing a vehicle, research the make and model to identify any common issues. Verify the seller’s credentials by ensuring they are a registered dealer with OMVIC. Avoid sellers who are unwilling to provide their dealer registration information or who only accept cash. 

Request a vehicle history report: Always ask for a comprehensive vehicle history report, such as one from Carfax. This report will provide details about the vehicle’s past, including any accidents, previous ownership, and potential mileage discrepancies. It will also provide details regarding any open recalls.  

Get a pre-purchase inspection: Have a trusted mechanic inspect the vehicle before finalizing the purchase. A mechanic can identify issues that may not be immediately obvious, helping you avoid costly repairs down the road. 

Ensure all disclosures are in writing: Insist that all mandatory disclosures, including previous use, accident history, and odometer readings, are provided in writing. Verbal assurances are not legally binding and may not hold up if issues arise later. 

Avoiding a lemon in Ontario is about being informed and vigilant. By understanding your rights under the law, working with OMVIC-registered dealers, and taking steps to verify the vehicle’s history and condition, you can significantly reduce the risk of buying a defective vehicle.  

OMVIC also offers resources to help consumers understand their rights and avoid scams. By visiting OMVIC’s website, you can access information on registered dealers, learn about common issues like odometer fraud, and even file a complaint if you suspect a dealer is not being honest. 

Remember, OMVIC is here to help you navigate the car-buying process and protect your rights as a car buyer.