Problem with a Used Car

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Mario Garcia, CarbonCure Technologies in October 2022.

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.

Tip 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.

You are 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 (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 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.

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.

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. 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"

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

Avoid curbers

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 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.

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.

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.

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.

To learn more, see How To Spot A Curber and Buying Privately on the Vehicle Sales Authority website.

Tip To see if a person or business is a licensed dealer, do an online licensee search on the Vehicle Sales Authority of BC website. You can search by a dealership or a salesperson.

Get an inspection

Have a licensed mechanic check the vehicle to see if it’s in good shape and if it needs any work. The BC Automobile Association (BCAA) provides Vehicle Inspection Services. They include pre-purchase inspections, safety inspections, and out-of-province-vehicle inspections.

Get a vehicle history report

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 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.

Consider getting a comprehensive vehicle history report such as from CARFAX Canada.

Do a lien search

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.

To search for liens, check the vehicle's serial number with the BC Personal Property Registry. You can also do a Canada-wide lien search with CARFAX Canada. Both searches involve a fee.

Get your agreement in writing

Get a written agreement whether you’re buying from a dealer or a private seller. Put in the terms that you want.

Tip If you are buying from a private seller, you can use People’s Law School’s document template to create a draft agreement.

Deal with any problems

Step 1. Contact the seller

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.

Tip See People’s Law School 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 2. If you are buying from a dealer, file a complaint

If you are buying the vehicle from a dealer, you can file a complaint with the Vehicle Sales Authority of BC. You can also email the Vehicle Sales Authority at consumer.services@mvsabc.com or phone them toll-free at 1-877-294-9889.

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 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 3. Contact a consumer agency or industry association

Contact the Better Business Bureau, which receives complaints about local businesses.

Contact the Automotive Retailers Association at 604-432-7987. Only some dealers belong to this voluntary organization.

If you bought a recreational vehicle, you can contact the Recreation Vehicle Dealers Association of Canada, a national, voluntary organization.

If you bought a used vehicle from a franchise dealer, contact the New Car Dealers Association of BC.

Step 4. Consider legal action

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.

Get help

If you buy from a dealer

The Vehicle Sales Authority of BC helps resolve complaints with licensed car dealers.

Toll-free: 1-877-294-9889

Web: mvsabc.com