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Consumers
Lured by lower prices, a growing number of consumers are turning to the used-car market. It's important to know that merchants selling used cars or motorcycles must comply with certain obligations provided by law.
In this Infosheet, Éducaloi explains how the Consumer Protection Act protects you in transactions with used-vehicle merchants.
No. The CPA provisions relating to the sale of a used vehicle only apply when you buy a used car or motorcycle from a merchant.
Therefore, if you buy a used car from an acquaintance or from an individual advertising in the classifieds, the CPA provisions are not applicable.
Yes. Used-car merchants must place a clearly visible sticker on each used vehicle they offer for sale. By law, you must be able to read the sticker in its entirety from the outside of the vehicle. This sticker displays information about the vehicle for the potential buyer and must include the following:
All of this information must be provided to assist you in making a clear and informed decision. If the merchant is not obliged to provide you with a certificate of inspection, you can have the mechanic of your choice evaluate the vehicle. This will give you a better idea of what you are purchasing. If the merchant refuses, you might want to reconsider the purchase, as he may be hiding something from you!
Once you have made your decision, the dealer must prepare a written contract. You should read the contract carefully before signing and be sure that you understand everything. Feel free to ask the merchant questions. The contract must contain the following information:
The sticker is also part of the contract and must be attached to it. Details such as the price and the length of the warranty may have been modified in the main contract. All other information on the sticker also forms part of the contract. A consumer can ask the court to annul the contract if the contract does not contain the information required by law and if this lack of information has harmed him.
All used vehicles come with a general warranty of good working order that varies depending on the price paid. A used vehicle costing $1,500 will not be covered by the same warranty as one costing $10,000, although no used vehicle should fall apart just two weeks after you bought it! The price paid will be a determining factor in the length of the basic warranty of good working order.
The law also provides for an extended warranty of good working order for certain categories of automobiles and motorcycles. For automobiles, the categories are as follows:
The date the automobile was put on the market is the date of issue of all vehicles of the same model and year of production in Quebec. It is strictly forbidden to tamper with the odometer to alter the distance indicated. Any person who commits such an offence can face a fine. The law also applies this extended warranty to motorcycles:
The extended warranty applies to automobiles in classes A to C and motorcycles in classes A and B (see above questions). This warranty covers parts and labour and takes effect upon delivery of the vehicle to the consumer.
The following are not covered under the extended warranty:
From the moment you notice a defect in the vehicle, you have three months to take action. You should act quickly - three months isn’t long! As soon as you become aware of a problem, you should send a notice of default to the merchant by registered mail, informing him of the problem. For more information, consult the Infosheet entitled Notice of default.
If the merchant does not cooperate, you can file a claim against him in Small Claims Court. In this case, your claim cannot exceed $7,000.
If the car came with a warranty when it was new (for example, for 5 years or 100,000 km) and these terms have not been met when the merchant resells it, then the warranty is still valid. When buying a used vehicle, you should find out whether the manufacturer’s original contractual warranty is still valid.
If so, the merchant or manufacturer must pay for all reasonable expenses relating to towing in the event of a breakdown, no matter where it occurs. This rule does not apply for motorcycles.
It is important to make sure that no debts or charges exist on the vehicle that you plan to buy. To do this, you need to consult the Registre des droits personnels et réels mobiliers (RDPRM). The RDPRM is an electronic register which is accessible to everyone and allows you to verify if property is charged by debts like a hypothec or reservation of ownership.
You can consult the register in the comfort of your own home, since it is available on the Internet. To do this, go to the RDPRM website website. It is also possible to consult the register by telephone, regular mail or fax. We invite you to visit the link above to learn the necessary details and contact information. Be careful: if you fail to carry out this important verification, you could be forced to pay any debts that are attached to the vehicle at the time of sale. You might even have to return the vehicle to the original owner, in some situations.
Yes. There is an inexpensive system called the “Canadian Motor Vehicle Arbitration Plan.” Here, a neutral and impartial arbitrator hears disputes between consumers and manufacturers, and makes a decision that is fair for both parties. The automobile manufacturers pay the entire cost of this service.
In order for you to benefit from this plan, your dispute must be with the manufacturer – not with the dealer. Your situation also must satisfy the following criteria:
For more details on this program, we recommend that you speak with the government agency that runs the service, the Office de la protection du consommateur (Consumer Protection Office).
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