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Consumers
Azizah wants to buy a car so she can get out of Montreal more easily. Her dream has never been to own a big luxury car. She’d prefer a small one that’s easy on the environment. A work colleague suggested she consider a used car.
Azizah is wondering if this is a good idea. She knows the law protects buyers of used cars, but she is not sure how these rules work. In this Infosheet, Éducaloi explains how the law protects you when you buy a used car or motorcycle from a merchant.
No. That law only protects you if you buy a used car or motorcycle from a merchant.
Merchants are individuals or companies in the business of selling for a profit on an ongoing basis. So if your friend sells you her used car to make a bit of money, this doesn’t make her a merchant and you won’t be protected by the Consumer Protection Act.
Yes. The merchant must place a clearly-visible sticker on each used car or motorcycle with information for potential buyers. Buyers must be able to read the entire sticker from outside the car or motorcycle. The sticker must contain the following:
Feel free to contact the previous owner to ask questions. This will help you make an informed decision. Since he is no longer the owner, he has no interest in hiding information from you. By asking questions, you’ll find out whether the car or motorcycle handles well in winter, whether it has ever been in an accident, etc. If the merchant is not required to give you an inspection certificate, try to have the car or motorcycle inspected by a mechanic to find out what condition it is in. You will be responsible for the cost of the inspection. If you are buying a used car, the law says it is your right to have it inspected by a mechanic, as long as the mechanic is located a reasonable distance from the place of sale.
It is important to check whether there are any outstanding debts or charges on the car or motorcycle you want to buy. Why?
Imagine that you buy a used car without checking for outstanding debts and charges. One morning, you get a call from the bank explaining that the former owner of your car gave it as security for a loan. Since he didn’t pay off his loan, the bank wants to seize the car. You could be stuck giving the car to the bank since it was up to you to check for any outstanding debts on the vehicle. To check for debts or charges, you must consult the Registre des droits personnels et réels mobiliers (RDPRM). The RDPRM is an electronic registry, accessible to everyone, that allows you to check if there are any debts or charges on certain items you might like to purchase, such as a car. You can check the registry in the comfort of your own home by visiting the RDPRM website. The registry is also accessible by telephone, mail or fax. To learn more, consult the RDPRM’s website.
Once you have made your decision, the merchant must prepare a written contract. You should read the contract carefully before signing and be sure you understand everything. Feel free to ask the merchant questions or to consult a legal professional.
The contract must contain the following information:
The sticker that was on the car or motorcycle is also part of the contract and must be attached to it. The only sticker information that can be changed (with your agreement) is the sale price and specifications of the warranty. You can ask a judge to cancel the contract if you suffered a loss as a result of the missing information that had to be included in your contract with the merchant.
Under the Consumer Protection Act (CPA), used cars and motorcycles are covered by a general warranty of good working order. This is a "legal" warranty, which means it applies automatically without you having to sign anything.
The length of the warranty depends on the following:
For cars, the length of the general warranty of good working order varies according to the following classes:
For motorcycles, the general warranty of good working order varies according to the following classes:
As mentioned in the previous question, the general warranty of good working order applies to cars in classes A to C, and motorcycles in classes A and B.
This warranty covers parts and labour and takes effect on delivery of the car or motorcycle to the buyer. The following are not covered by this warranty:
Cars and Motorcycles
If the car or motorcycle came with a warranty for a certain length of time or certain mileage when it was bought new, and this time or mileage has not run out when a merchant resells it, then the warranty is still valid. In this case, the original manufacturer or dealer must pay for all repairs covered by the warranty. When buying a used car or motorcycle, you should find out whether this original warranty is still valid. Cars Only When the original warranty is still valid and repairs are needed, the original manufacturer or dealer must pay for all reasonable expenses for towing or breakdown service.
CAMVAP (the “Canadian Motor Vehicle Arbitration Plan”) is a system set up to resolve disputes between car manufacturers and buyers. Car manufacturers cover the cost of this service. You are only responsible for your own expenses (e.g., photocopies, any costs for experts, subpoena costs).
Under CAMVAP, a neutral and impartial arbitrator hears disputes and makes a decision that both parties must follow. To qualify for CAMVAP, your dispute must meet certain requirements, such as:
For more details on this program, consult the CAMVAP website.
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