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Consumers - Consumer contracts

Buying a used automobile or used motorcycle from a merchant

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.

Does the Consumer Protection Act (CPA) apply to the purchase of all used vehicles?

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.

Does the merchant have to provide me with certain information about the vehicle?

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:

• the vehicle’s price if it is for sale or its retail value if it is offered for long-term lease;
  
• the number of miles or kilometres registered on the odometer;
  
• a complete description of the vehicle, including the year of manufacture, the serial number, the make, model and cubic capacity of the engine;
  
• whether the automobile has ever been used as a taxicab, driving school automobile, police car, ambulance, leased automobile or rental, as well as the identity of every business or public organization that owned the vehicle or rented it on a long-term basis;
  
• every repair done on the vehicle since it has been in the possession of the merchant;
  
• the class of vehicle and the specifications of the warranty;
  
• in some cases, a notice of the merchant’s obligation to give the consumer a certificate of mechanical inspection;
  
• information indicating that the merchant must, at the consumer’s request, provide him with the name and telephone number of the previous owner. You should feel free to contact the vehicle’s former owner to ask questions. Since she no longer owns the car, she has nothing to gain by hiding anything from you.

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!

What must be included in the contract?

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 number of the licence issued to the merchant;
  
• the place and date of the contract;
  
• your name and address;
  
• the merchant’s name and address;
  
• the price of the automobile or motorcycle;
  
• the amount of applicable taxes;
  
• the total amount you must pay;
  
• the specifications of the warranty.

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.

Are used vehicles covered by a warranty?

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:

• A: for cars on the market 2 years or under, with less than 40,000 km on the odometer, the warranty is 6 months or 10,000 km, whichever comes first;
  
• B: for cars on the market 3 years or under, with less than 60,000 km on the odometer, the warranty is 3 months or 5,000 km, whichever comes first;
  
• C: for cars on the market 5 years or under, with less than 80,000 km on the odometer, the warranty is 1 month or 1,700 km, whichever comes first;
  
• D: for other cars, no extended warranty applies beyond the basic warranty of good working order.

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:

• A: motorcycles on the market 2 years or less are covered for 2 months;
  
• B: motorcycles on the market more than 2 but less than 3 years are covered for 1 month;
  
• C: other motorcycles are not eligible for coverage beyond the basic warranty of good working order.

What is covered under the extended warranty in the Consumer Protection Act?

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:

• normal maintenance of the vehicle;
  
• interior upholstery or exterior decorative items;
  
• damage resulting from abuse by the consumer after delivery of the automobile;
  
• for motorcycles, accessories not essential to their good working order.

How long do I have if I wish to take action against a merchant?

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 demand letter to the merchant by registered mail, informing him of the problem. For more information, consult the Infosheet entitled The demand letter  (http://www.educaloi.qc.ca/en/loi/citizens/31/).

If the merchant does not cooperate, you can file a claim against him in Small Claims Court as long as your claim does not exceed $7,000.

Does the warranty offered by the original manufacturer or dealer remain valid?

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.

What other precautions should I take when buying a vehicle?

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  (http://www.rdprm.gouv.qc.ca). 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.

If things don’t work out with the dealer, is there a way to assert my rights without spending a lot of money?

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:

• Your vehicle must be the current year’s model or a model made in the last four years;
  
• Your vehicle must have less than 160,000 km on it;
  
• The vehicle can be bought or rented, new or used.

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).

Useful Links :

1. Office de la protection du consommateur website  [http://www.opc.gouv.qc.ca/e_HotLine/map_Site.asp]
2. Registre des droits personnels et réels mobiliers  [http://si2.rdprm.gouv.qc.ca/rdprmweb/html/engls_publication.asp]