New car dealer law gives buyers protection against lemons.
Ontario Minister of Consumer Services Ted McMeekin explains the details of the new Motor Vehicle Dealers Act Tuesday at Auto Showplace. The act will provide enhanced consumer protection for vehicle buyers in Ontario.
Staff photo/ERIC HEINO
A friend of a friend got a great deal on their dream vehicle, only to discover that after unexpected repair bills began to add up, their unlicensed dealer had left town and left the purchaser with a costly transportation nightmare.It's an all too familiar situation the Ontario government is hoping to eliminate with the implementation of the Motor Vehicle Dealers Act that came into force on Jan. 1. Ontario Minister of Consumer Services Ted McMeekin was on hand at North York's Auto Showplace on Tuesday, Jan. 12 to explain how the new act will make it easier for vehicle buyers to protect themselves from getting stuck with a lemon."Whenever the economy goes through a rough period consumers want to ensure they get the very best value and they are somewhat more selective about the purchases they make," said McMeekin. "The regulations we have worked on collectively with the Ontario Motor Vehicle Industry Council (OMVIC) to develop will insure that in this industry in particular, the confidence that is there will remain strong and will grow. Consumers will be much more willing (to buy) knowing that they have enhanced protection to make the kinds of purchases that we hope will stimulate the motor vehicle industry."The government has left administration of the act in the hands of the OMVIC, which represents 8,300 registered dealers and 22,000 salespeople in Ontario. McMeekin stressed the importance of buying from a dealer registered with OMVIC, because consumer protections in the new legislation don't apply to unregistered "curbsiders" that may misrepresent the history and condition of what seems like a great vehicle purchase.Dealers are now obligated to disclose important information about the vehicle's history, include all additional fees when advertising prices, and adhere to a standard code of ethics. If dealers fail to disclose important information, consumers are eligible for significantly increased pay-outs while maximum fines for dealers have more than doubled.The Auto Showplace is a long-time member of OMVIC and staff there played a role in laying the ground rules for the legislation. Manager John Wallischeck predicts a more level playing field with competitors who used tactics that would get customers in the door, only to learn the price they would end up paying was much higher than advertised."It's so hard to compete with someone who is selling a car that looks like it's really cheap, but then adds on $1,500 for a sales fee and a bunch of administration fees, so really the car is not that cheap after all," said Wallischeck.The most common complaint he hears about other dealerships is a failure to disclose the history of a vehicle, which can lead to big repair costs in the future."We do a car proof and a ministry search so it tells you the amount of owners and accidents, but just because it's not written on that paper doesn't mean it hasn't been in an accident because it could have been fixed privately," said Wallischeck. "That's always a big key because dealers can say that it shows clean in a car proof, but it has been repaired privately after a big accident."He said there is not necessarily anything wrong with a car that has been repaired, but the customer deserves to know. The confidence given to potential buyers by knowing the legalities surrounding dealerships should stimulate the motor vehicle industry.The need for such laws should be given attention by those that give up their trust, and money, too easily."This might be a wake-up call for people because a lot of people are still very trusting," said Wallischeck. "It's amazing how many people come to me and regret they never looked at the paperwork."