Difference between revisions of "Problem with a Used Car"

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{{REVIEWEDPLS | reviewer = Ian Christman, Vehicle Sales Authority of BC |date= June 2018}} {{Dial-A-Law TOC|expanded = cars}}
{{REVIEWEDPLS | reviewer = [https://www.carboncure.com/ Mario Garcia], CarbonCure Technologies |date= October 2022}} {{Dial-A-Law TOC|expanded = cars}}
Buying a '''used vehicle''' can be risky. The vehicle might have hidden problems or the seller might be dishonest. Learn what to watch for and how to deal with any problems.
You bought a used car. Just days later, it broke down. Your mechanic says the problem will cost thousands to repair. What can you do? Learn your rights and steps you can take.


==Understand your legal rights==  
==What you should know==  


===Who you buy a used vehicle from affects your rights===
===You’re protected by the legal warranty===
You can buy a used vehicle from a '''dealer''' or a private seller. A dealer is anyone who sells or exchanges motor vehicles to try to earn income. Dealers must be licensed by the [http://mvsabc.com/ Vehicle Sales Authority of BC] and follow certain laws.
Under the law in BC, a level of quality, performance and durability is implied into every sales contract.


Be on the lookout for '''curbers'''. A curber is someone who sells vehicles to earn income, but has not been licensed as a dealer. Many curbers misrepresent the real condition of the vehicle, hide major issues, or fail to disclose '''liens'''. The section below on “Prevent problems” explains these risks and how to minimize them.
When you buy a car from a dealer, it has to be:


===A dealer must give you certain information===
* fit for the purpose you bought it for
Under the [http://canlii.ca/t/847n law in BC], a vehicle for sale must meet minimum safety requirements. Dealers have to say on the purchase agreement whether a vehicle meets these safety requirements. And dealers must mark vehicles for sale that do not meet minimum safety requirements as “not suitable for transportation”. Private sellers don’t have to do these two things.
* of “merchantable” quality (it has to run)
* durable for a reasonable period of time
* “as described”


As well, under [https://www.canlii.org/en/bc/laws/regu/bc-reg-447-78/latest/bc-reg-447-78.html#sec23_smooth BC law], a dealer must give you the following information about the vehicle, in writing:
These conditions are the '''legal warranty'''. They apply whether the dealer mentions them or not.
*Whether the vehicle has sustained damage requiring repairs costing more than $2,000.
*Whether the vehicle has been brought into BC just to be sold here (in which case it may have salt damage, for example), or if it has been registered outside BC, and where, if known.
*Whether the vehicle has been used as a taxi, police or emergency vehicle, a lease or rental vehicle, or in organized racing.
*Whether the odometer accurately records the true distance the vehicle has traveled.
*The mileage and model year of the vehicle.


===A dealer must detail all charges connected with the sale===
If the car is faulty or it’s not as described, the legal warranty is your escape hatch. It can give you the right to get the car repaired or replaced — or cancel the contract and get your money back.
A dealer must also give you the following information, in writing, about all charges connected with buying a used vehicle:
*dealer preparation costs
*documentation and administrative fees
*sales tax
*license and insurance fees (separate from ICBC charges)
*interest costs if the dealer arranges financing for you
*costs of any repairs
*costs of any options
*your total cost


{| class="wikitable"
===The legal warranty is more limited if you buy privately===
|align="left"|'''Tip'''
If you buy privately from an individual, the legal warranty is more limited than if you buy from a car dealer.
If you’re buying from a dealer, ask about their return policies. There’s no automatic right to return a motor vehicle. Many people assume there is, as they’re used to generous return policies of some retail stores.
 
|}
A dealer (this is anyone who sells or trades motor vehicles for a living — so not just car dealerships), is bound by strict conditions. The car has to be of decent quality and “fit for the purpose” you bought it for. A private seller isn’t bound by these rules.
 
===You are protected by the legal warranty===
That said, when you buy from a private seller, the car still has to be “reasonably durable” and “as described.”
Under the law in BC, a level of quality, performance and durability is implied into every sales contract. When you buy a car from a dealer, it has to be:
*fit for the purpose you bought it for (that is, it has to function as a vehicle)
*of “merchantable” quality (it has to work)
*durable for a reasonable period of time
*“as described” (it has to match the dealer's advertising and any statements or representations made by the dealer at the time of the sale)


These conditions are sometimes referred to as the "'''legal warranty'''", as they are established by a law called the ''[http://canlii.ca/t/84c2 Sale of Goods Act]''. This legal warranty applies regardless of whether the dealer mentions it. It is in addition to any warranty the dealer or manufacturer provide.
==Take action==
===Possible outcomes===
If the used car you just bought breaks down, you aren’t always entitled to a refund or discount. For example, if you:


If the car is faulty or not as described, the legal warranty can give you the right to get it repaired or replaced, or to cancel the contract and get a full refund.
* just don’t like the car — you can’t just change your mind
* should have spotted the problem during an inspection (like a big dent in the fender)
* were told about the problem before you bought
* caused the problem


====The legal warranty is more limited if you buy privately====
In each of these cases, you’re likely out of luck.
If you buy privately from an individual, the legal warranty is more limited than if you buy from a car dealer. If you buy a used car from an individual, it has to be durable for a reasonable period of time and match the description. The conditions that a used car be fit for the purpose you bought it for and of "merchantable" quality apply only when you buy from a car dealer.


====When a car is sold "as is"====
On the other hand, if you can show the vehicle didn't meet the '''legal warranty''', or the seller '''misrepresented''' the vehicle, you may be entitled to:
Sometimes, a seller will say a car is sold "as is". This suggests you won't be able to expect help with any repairs or service if there are problems. In fact, the legal warranty applies to all new products, no matter what a seller says. However, the legal warranty '''can''' be waived for a used vehicle. Be cautious if you are asked to waive it.


==Prevent problems==
* return the vehicle,
* get a discount, or
* have the seller pay for the repairs.


===Avoid curbers===
Misrepresentation is where the seller told you something about the vehicle that is untrue or misleading, and you relied on that in buying.
Curbers are people who sell vehicles to earn income, but without a motor dealer licence. By law, anyone selling motor vehicles to earn income in BC must have a dealer licence from the [http://mvsabc.com/ Vehicle Sales Authority of BC].  


Curbers operate illegally and cheat buyers. They do things such as turning back the odometer to make it look like a vehicle has lower mileage than it really has. Many curbers get vehicles from elsewhere in Canada and the US. They may hide damage and lie about a vehicle’s history, including its mileage and where it came from. They may charge extremely high and illegal interest rates or ask you to lie about the sale price for tax purposes.  
===Steps to take===
Here are steps you can take to resolve a problem with a used car.


There are many types of curbers. Some are mechanics who have repair facilities and also sell vehicles. Some curbers have several cars parked on their front lawn with “for sale” signs.
'''Step 1.''' Decide what you want


A common myth is that you can sell up to five vehicles a year privately without registering as a motor dealer. That’s not true. If you sell even one vehicle to try to earn income, then you must register as a motor dealer.
'''Step 2.''' Contact the seller directly


It’s risky to buy from a curber. You may lose your money and get an unsafe vehicle. You can sue, but that’s expensive and often futile. The Vehicle Sales Authority of BC can investigate the curber, but it won’t help you get your money back.
'''Step 3.''' Try dispute resolution (dealer only!)


To learn more, see [http://mvsabc.com/consumers/how-to-spot-a-curber/ How To Spot A Curber] and [http://www.mvsabc.com/consumers/buying-privately Buying Privately] on the Vehicle Sales Authority website.
'''Step 4'''. File a complaint (dealer only!)


{| class="wikitable"
'''Step 5.''' Try consumer agencies (dealer only!)
|align="left"|'''Tip'''
To see if a person or business is a licensed dealer, do an [http://publicregistry.mvsabc.com/Pages/en_US/Forms/Public/Register/Default.aspx?tabid=1 online licensee search] on the Vehicle Sales Authority of BC website. You can search by a dealership or a salesperson.
|}


===Get an inspection===
'''Step 6.''' Take to social media
Have a licensed mechanic check the vehicle to see if it’s in good shape and if it needs any work. The [http://www.bcaa.com/ BC Automobile Association] (BCAA) provides [https://www.bcaa.com/automotive/bcaa-auto-service-centre/vehicle-inspection Vehicle Inspection Services]. They include pre-purchase inspections, safety inspections, and out-of-province-vehicle inspections.


===Get a vehicle history report===
'''Step 7.''' Take legal action
See if the vehicle has been in an accident — that can reduce its value and safety. You can buy a '''vehicle history report''' from ICBC or from CARFAX Canada. See the [https://www.icbc.com/vehicle-registration/buy-vehicle/buy-a-used-vehicle/Pages/Vehicle-history-reports.aspx ICBC website], or call them at 604-661-2233 in Vancouver and 1-800-464-5050 elsewhere in BC.


You'll need the vehicle identification number (VIN), the make, model and year. Many vehicles are in the ICBC database, but not all of them. If a vehicle was ever insured and registered outside of BC, the ICBC report will not show the vehicle history outside of BC.  
===More on each step===
'''Step 1. Decide on what you want'''<br>
Once you understand your legal rights and options, decide what outcome you're seeking.


Consider getting a comprehensive vehicle history report such as from [https://www.carfax.ca/ CARFAX Canada].
Are you hoping to have the vehicle repaired? To get a refund? A discount?


===Do a lien search===
'''Step 2. Contact the seller directly'''<br>
Check if there are any '''liens''' on the vehicle. A lien is a legal claim made on property to make sure money is paid back. Liens are attached to a vehicle, not to its owner. If you buy a vehicle with a lien on it, the lien holder can take the vehicle from you as payment for the debt.
Try to raise any problems with the seller first.


To search for liens, check the vehicle's serial number with the BC [https://www2.gov.bc.ca/gov/content/employment-business/business/managing-a-business/permits-licences/bc-registry-services-personal-property-registry Personal Property Registry]. You can also do a Canada-wide lien search with [https://www.carfax.ca/ CARFAX Canada]. Both searches involve a fee.  
If you bought from a dealer, ask to speak to someone with authority, such as a manager or owner. Clearly explain your problem. Let them know the outcome you’re seeking.


===Get your agreement in writing===
You can talk to them in person. But many people are more comfortable sending a letter. We have a tool to help you build a letter. See our [https://www.peopleslawschool.ca/letter-complain-used-car-dealer/ letters to complain to a dealer] and to a [https://www.peopleslawschool.ca/letter-complain-used-car-private/ private seller].
Get a written agreement whether you’re buying from a dealer or a private seller. Put in the terms that you want.


{| class="wikitable"
{| class="wikitable"
|align="left"|'''Tip'''
|align="left"|'''We've got in-depth info'''
If you are buying from a private seller, you can use People’s Law School’s [https://www.peopleslawschool.ca/everyday-legal-problems/cars-getting-around/template-letters-agreements/agreement-sale-used-vehicle document template] to create a draft agreement.
See our in-depth information on [https://www.peopleslawschool.ca/everyday-legal-problems/cars-getting-around/buying-or-repairing-car/problem-used-car-you-bought problems with a used car] for tips on how to explain your problem to the seller, as well as a template letter you can use.
|}
|}


==Deal with any problems==
'''Step 3. Try dispute resolution (dealer only!)'''<br>
If the letter doesn’t clear things up, dispute resolution might. It involves a third party helping you and the dealer reach a solution.


===Step 1. Contact the seller===
Here’s an example. There’s a free program called the Canadian Motor Vehicle Arbitration Program. It can help you resolve disputes with car makers about defects or a warranty. [https://www.camvap.ca/participating-manufacturers/~english Visit the CMVAP website].
If you have a problem as you are buying a used vehicle, try to solve it with the seller first. If you are buying from a dealer, ask to speak to someone with authority, such as a manager or owner. Clearly explain your problem. Let them know the outcome you’re seeking.  


{| class="wikitable"
'''Step 4. File a complaint (dealer only!)'''<br>
|align="left"|'''Tip'''
If you’re buying the vehicle from a dealer, you can file a complaint with the Vehicle Sales Authority of BC. [https://vsabc.ca/consumers/find-help-for-your-issue/make-a-formal-complaint-to-the-vsa/ Visit the VSA website].
See People’s Law School information on [https://www.peopleslawschool.ca/everyday-legal-problems/cars-getting-around/buying-or-repairing-car/problem-used-car problems with a used car] for tips on how to explain your problem to the seller, as well as a template letter you can use.
 
|}
The Vehicle Sales Authority also runs the motor dealer customer compensation fund. It reimburses people who have lost money because a dealer has gone out of business or failed to meet certain legal obligations.
 
The authority’s website explains who can apply for compensation, what losses the fund covers, and how to file a claim. [https://vsabc.ca/consumers/find-help-for-your-issue/make-a-compensation-fund-claim/ Visit the VSA website to learn more].
 
'''Step 5. Contact a consumer agency or industry association (dealer only!)'''<br>
The Better Business Bureau may not be able to solve the problem, but complaining to them can help others avoid problems going forward.
:'''Better Business Bureau'''
:Receives complaints about local businesses that are members.
:Call 1-888-803-1222
:[https://www.bbb.org/ca/bc Visit website]
 
Complaining to an association a car dealer is a member of can help get their attention.
 
:'''Automotive Retailers Association'''
:Many car dealers belong to this voluntary organization.
:[https://www.ara.bc.ca/ Visit ARA]
 
:'''Recreation Vehicle Dealers Association'''
:A national, voluntary organization for RV dealers.
:[https://www.rvda.ca/ Visit RVDA]


===Step 2. If you are buying from a dealer, file a complaint===
:'''New Car Dealers Association of BC'''
If you are buying the vehicle from a dealer, you can file a [https://mvsabc.com/consumers/complaints/when-the-dealer-is-licensed/ complaint with the Vehicle Sales Authority of BC]. You can also email the Vehicle Sales Authority at [mailto:consumer.services@mvsabc.com consumer.services@mvsabc.com] or phone them toll-free at 1-877-294-9889.
:Representing franchised car dealers who sell new vehicles.
:[https://www.newcardealers.ca/ Visit NCDA]


The Vehicle Sales Authority also runs the [https://mvsabc.com/compliance-and-claims/compensation-fund/ Motor Dealer Customer Compensation Fund]. It reimburses people who have lost money because a dealer has gone out of business or failed to meet its legal obligations. The money in the fund comes from contributions from all licensed dealers in BC. The authority’s website explains who can apply for compensation, what losses the fund covers, and how to file a claim.
'''Step 6. Take to social media'''<br>
Consider telling your story on social media. Be factual and truthful about what happened — using foul or insulting language may work against you.


===Step 3. Contact a consumer agency or industry association===
Social pressure is powerful. The seller may be motivated to make things right to show they’re good citizens (corporate or otherwise).
Contact the [http://www.bbb.org/ Better Business Bureau], which receives complaints about local businesses.  


Contact the [http://www.ara.bc.ca/ Automotive Retailers Association] at 604-432-7987. Only some dealers belong to this voluntary organization.  
'''Step 7. Consider legal action'''<br>
If you can’t solve the problem with the above steps, your next option may be to take legal action.


If you bought a recreational vehicle, you can contact the Recreation Vehicle Dealers Association of Canada, a national, voluntary organization.  
For claims under $5,000, you can apply to work out your dispute with the Civil Resolution Tribunal. This is a cheaper and faster option than going to court.


If you bought a used vehicle from a franchise dealer, contact the [http://www.newcardealers.ca/ New Car Dealers Association of BC].
Seeking legal advice can help you clarify your options.


===Step 4. Consider legal action===
:'''Lawyer Referral Service'''
If you can’t solve the problem with the above steps, your next step may be to take legal action. If you don’t have a lawyer, there are options for free or low-cost legal help.  
:Helps you connect with a lawyer for a complimentary 15-minute consult to see if you want to hire them.
:Call 1-800-663-1919
==Get help==
:[https://www.accessprobono.ca/our-programs/lawyer-referral-service Visit website]


===If you buy from a dealer===
:'''Access Pro Bono's Free Legal Advice'''
The '''Vehicle Sales Authority of BC''' helps resolve complaints with licensed car dealers.  
:Volunteer lawyers provide 30 minutes of free legal advice to people with low or modest income.
:Toll-free: 1-877-294-9889
:Call 1-877-762-6664
:Web: [http://www.mvsabc.com/ mvsabc.com]
:[https://www.accessprobono.ca/get-legal-help Visit website]


{{Dial-A-Law Copyright}}
===Go deeper===
We have even more coverage of sorting out a problem with a used car, whether you bought from a private seller or a car dealer. [https://www.peopleslawschool.ca/everyday-legal-problems/cars-getting-around/buying-or-repairing-car/problem-used-car-you-bought See our in-depth coverage of problems if you bought privately] and [https://www.peopleslawschool.ca/everyday-legal-problems/cars-getting-around/buying-or-repairing-car/problem-used-car-you-bought-0 problems if you bought from a dealer].


{{Dial-A-Law_Navbox|type=consumer}}
{{Dial-A-Law_Navbox|type=consumer}}
{{Dial-A-Law Copyright}}

Latest revision as of 06:32, 30 September 2023

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Mario Garcia, CarbonCure Technologies in October 2022.
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You bought a used car. Just days later, it broke down. Your mechanic says the problem will cost thousands to repair. What can you do? Learn your rights and steps you can take.

What you should know

You’re protected by the legal warranty

Under the law in BC, a level of quality, performance and durability is implied into every sales contract.

When you buy a car from a dealer, it has to be:

  • fit for the purpose you bought it for
  • of “merchantable” quality (it has to run)
  • durable for a reasonable period of time
  • “as described”

These conditions are the legal warranty. They apply whether the dealer mentions them or not.

If the car is faulty or it’s not as described, the legal warranty is your escape hatch. It can give you the right to get the car repaired or replaced — or cancel the contract and get your money back.

The legal warranty is more limited if you buy privately

If you buy privately from an individual, the legal warranty is more limited than if you buy from a car dealer.

A dealer (this is anyone who sells or trades motor vehicles for a living — so not just car dealerships), is bound by strict conditions. The car has to be of decent quality and “fit for the purpose” you bought it for. A private seller isn’t bound by these rules.

That said, when you buy from a private seller, the car still has to be “reasonably durable” and “as described.”

Take action

Possible outcomes

If the used car you just bought breaks down, you aren’t always entitled to a refund or discount. For example, if you:

  • just don’t like the car — you can’t just change your mind
  • should have spotted the problem during an inspection (like a big dent in the fender)
  • were told about the problem before you bought
  • caused the problem

In each of these cases, you’re likely out of luck.

On the other hand, if you can show the vehicle didn't meet the legal warranty, or the seller misrepresented the vehicle, you may be entitled to:

  • return the vehicle,
  • get a discount, or
  • have the seller pay for the repairs.

Misrepresentation is where the seller told you something about the vehicle that is untrue or misleading, and you relied on that in buying.

Steps to take

Here are steps you can take to resolve a problem with a used car.

Step 1. Decide what you want

Step 2. Contact the seller directly

Step 3. Try dispute resolution (dealer only!)

Step 4. File a complaint (dealer only!)

Step 5. Try consumer agencies (dealer only!)

Step 6. Take to social media

Step 7. Take legal action

More on each step

Step 1. Decide on what you want
Once you understand your legal rights and options, decide what outcome you're seeking.

Are you hoping to have the vehicle repaired? To get a refund? A discount?

Step 2. Contact the seller directly
Try to raise any problems with the seller first.

If you bought from a dealer, ask to speak to someone with authority, such as a manager or owner. Clearly explain your problem. Let them know the outcome you’re seeking.

You can talk to them in person. But many people are more comfortable sending a letter. We have a tool to help you build a letter. See our letters to complain to a dealer and to a private seller.

We've got in-depth info

See our in-depth information on problems with a used car for tips on how to explain your problem to the seller, as well as a template letter you can use.

Step 3. Try dispute resolution (dealer only!)
If the letter doesn’t clear things up, dispute resolution might. It involves a third party helping you and the dealer reach a solution.

Here’s an example. There’s a free program called the Canadian Motor Vehicle Arbitration Program. It can help you resolve disputes with car makers about defects or a warranty. Visit the CMVAP website.

Step 4. File a complaint (dealer only!)
If you’re buying the vehicle from a dealer, you can file a complaint with the Vehicle Sales Authority of BC. Visit the VSA website.

The Vehicle Sales Authority also runs the motor dealer customer compensation fund. It reimburses people who have lost money because a dealer has gone out of business or failed to meet certain legal obligations.

The authority’s website explains who can apply for compensation, what losses the fund covers, and how to file a claim. Visit the VSA website to learn more.

Step 5. Contact a consumer agency or industry association (dealer only!)
The Better Business Bureau may not be able to solve the problem, but complaining to them can help others avoid problems going forward.

Better Business Bureau
Receives complaints about local businesses that are members.
Call 1-888-803-1222
Visit website

Complaining to an association a car dealer is a member of can help get their attention.

Automotive Retailers Association
Many car dealers belong to this voluntary organization.
Visit ARA
Recreation Vehicle Dealers Association
A national, voluntary organization for RV dealers.
Visit RVDA
New Car Dealers Association of BC
Representing franchised car dealers who sell new vehicles.
Visit NCDA

Step 6. Take to social media
Consider telling your story on social media. Be factual and truthful about what happened — using foul or insulting language may work against you.

Social pressure is powerful. The seller may be motivated to make things right to show they’re good citizens (corporate or otherwise).

Step 7. Consider legal action
If you can’t solve the problem with the above steps, your next option may be to take legal action.

For claims under $5,000, you can apply to work out your dispute with the Civil Resolution Tribunal. This is a cheaper and faster option than going to court.

Seeking legal advice can help you clarify your options.

Lawyer Referral Service
Helps you connect with a lawyer for a complimentary 15-minute consult to see if you want to hire them.
Call 1-800-663-1919
Visit website
Access Pro Bono's Free Legal Advice
Volunteer lawyers provide 30 minutes of free legal advice to people with low or modest income.
Call 1-877-762-6664
Visit website

Go deeper

We have even more coverage of sorting out a problem with a used car, whether you bought from a private seller or a car dealer. See our in-depth coverage of problems if you bought privately and problems if you bought from a dealer.

v • d • e
 
Consumer & Money
Cars & Getting Around
Consumer
Money & Debt
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