This is a vehicle for sale on the internet right now with a reputable dealer. You need to buy with confidence egardless of the price. Click here for more.
This is a vehicle for sale on the internet right now with a reputable dealer. You need to buy with confidence regardless of the price. You could buy the vehicle outright in cash, but if you hand over $6500.00 to someone would you get the keys right away? why Wouldn't you? What happens if you had to call the police and he says, you tried to pay him only $1000.00 and now you are demanding the key but really you paid him $6500.00? So, you need to check out the dealer and maybe you should commit to paying most or all of the payment electronically. If you do, you have evidence on your bank statement.
The total amounting would be $6500.00 plus tax at 13% in your territory. The total is $6500.00 x .13 equals $845.00. Add this back to the sale price and the total owed is $7345.00.
If you make the $1000.00 down payment and then come back in 5 hours to pick up the vehicle after they have cleaned it up and finished the certification, are you going to pay the final balance by interac with 4 debits to your account at about $1500.00 each?
ALERT: You should already have a contract of sale in your hand after the down payment with the vin number of the vehicle on it and the amount owing that is left to be paid in some method of payment. Will it be the dealer's finance agreement? Will you pay the balance in a cash lump sum? Will you use interac or a credit card? The dealers are monitored by a provincial regulator so they tend to be trust worthy and professional and sometimes they would still like to understand people and ask people if they are naive. Do you notice how naive and native are the same word except for the letter T that is missing?
What is the maximum weekly transaction on your account for interac transactions? What is the amount for a singular transaction? Maybe you call your bank and ask them to increase the limit temporarily to assist or you need to complete the interac payment in 5 payments or you buy a draft payable to the dealer for the difference owed after your $1000.00 down payment.
Maybe after the down payment, you finance the $7345.00. Finance means there is a loan. The loan will carry an interest rate of maybe 7 %. We calculate the amount now owed with the interest payment as follows. It will be $7345.00 x.07 that equals $7859.15. Will it be paid over 12 or 24 months?
If its 12 months with the interest on the loan included, we divide the $7859.15 /12 to work out the monthly payment.
If its 24 months, we divide the $7859.15/24 to get the monthly payment which is $327.46.
This article will be helpful even if you are buying a brand new vehicle. It cant be that the finance computer is always right and you are naive. Add the T in that word. The deal is what we look at on paper and on the computer. What is the price of the vehicle before tax and what do you owe on a finance agreement with the loan interest. What are the monthly payments. Is it a 2017 convertible Porsche 911 in white? That is not too expensive as vehicles go but its not for you to be used in the conversation to acquire the vehicle. Look at those big wheels. See a photo of such a vehicle below. Call and we can discuss what to expect on your finance agreement.
The calculations above include certification / mot.
Now, what do you do if you make a down payment and change your mind? If you signed the contract, the dealer, according to law and according to the regulations he must abide by as a member of the auto dealers' association must at least give you credit for the down payment toward the purchase of some vehicle if you changed your mind about the first vehicle you had thought of if you have not taken delivery of the vehicle. Maybe you changed your mind because you thought it had the parking camera function or air conditioning or a hybrid system but it does not and this was not fully disclosed in the partial description. It's only a Retro Ethos Mustang with a 5.0 L engine and it burns rubber; yeeeeeee hawww !!!!!
If you need assistance reviewing a contract, we help you with our research so contact SDGCK to assist you or email us at
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This article is written in honor of Father's Day and in honor of my father!
Happy Father's Day!!
In Ontario the following may be helpful from OMVIC:
Buying from Dealership
Cancelling a Contract
Generally speaking, unless a dealer has breached the Motor Vehicle Dealers Act (MVDA) or Consumer Protection Act (CPA) in a way that specifically triggers a customer’s/consumer’s right to rescission (contract cancellation – see below for details), or a condition on a contract is not met, there is no right to cancellation, or a "cooling-off" period, once a customer has signed a contract to purchase a vehicle. This is why each purchase agreement must contain the following statement next to the purchaser’s signature:
Sales Final
Please review the entire contract, including all attached statements, before signing. This contract is final and binding once you have signed it unless the motor vehicle dealer has failed to comply with certain legal obligations.
It is vital every consumer carefully read the entire contract (and any other associated agreements (e.g. financing contract) and only sign it when he/she is certain he/she wants to purchase the vehicle.
How to Avoid Problems with Contract Cancellation
To avoid contract cancellation disputes consumers should:
- Understand that sales are final unless the contract includes a condition(s) allowing for cancellation
- Ensure all promises and conditions are written on the contract
- Understand vehicle locating and timing if the vehicle is not in stock or must be factory ordered
- Ensure contracts are complete, including any finance terms and conditions
- Only sign the contract if they are certain they want to purchase the vehicle
What can a Dealer do if a Consumer Cancels with no Legal Reason?
If a consumer cancels an agreement without a legal right to do so, the dealer has four options:
Cancel the contract and refund the deposit: some dealers do this to avoid the problem of dealing with cancellations. It can also generate goodwill and boost the dealer’s reputation.
Try to salvage the deal: Provide the customer with options that address his/her concerns. For example, offer to find a more suitable or affordable vehicle.
Seek compensation: A dealer may choose to seek compensation from the customer for expenses suffered because of the cancellation of the contract. These are referred to as liquidated damages, and must be reasonable and provable. If a consumer files a complaint about liquidated damages, OMVIC may ask the dealer for documentation proving the damages.
Sue the customer: A dealer could pursue civil action and ask the court to enforce the contract.
Requesting a Deposit Back
While some dealers may cancel a contract and return a deposit as a gesture of goodwill, they are not obligated to do so. Should a consumer find him/herself in this situation OMVIC recommends being honest with the dealer and seeking an amicable resolution. It may be necessary to put your request in writing.
Consumers seeking to cancel a contract may send a letter to the dealership provided that:
- the contract was recently signed and the purchaser has not taken possession of the vehicle, AND,
- the consumer wishes to cancel the agreement under one of the conditions specified in the back of the contract but mutual consent has not been given.
This is an example of how the letter to the dealership should be worded. Note: use a delivery method that provides proof of delivery.
Help Dealing with a Contract Cancellation Dispute
Consumers with questions regarding contract cancellations should contact OMVIC’s Consumer Support Services at 1-800-943-6002x3942, or via email at consumers@omvic.on.ca
Important note: OMVIC will attempt to assist consumers involved in a dispute with a registered dealer however OMVIC does not have the authority to order a dealer to cancel a contract or return a deposit, only the courts have that authority.
Exceptions: When a Contract CAN be Cancelled
While there is no mandated cooling-off period when buying a vehicle, there are certain situations that do provide consumers with the legal right to a refund or contract cancellation.
These occur when:
- there is no signed contract
- certain condition(s) are not met
- rescission is owed due to non-disclosure (under the MVDA)
- rescission is owed due to an unfair business practice (under the CPA)
Deposit Given with no Signed Contract
If a consumer gives a dealer a deposit for the purchase of a vehicle but no contract is signed, the consumer can request the deposit back at any time and the dealer must comply.
Conditions not Met
Conditions set out in clear terms what the seller and buyer are obligated to do before a purchase is completed. If a condition isn’t met, the deal is cancelled and any deposit is returned.
Are There Common Conditions Consumers Request?
While conditions stipulated should be based on what is important to the purchaser, some frequently requested conditions on a contract are:
- Subject to a mechanical inspection
- Subject to repairs being made
- Subject to a spouse/partner/parent’s approval
- Subject to satisfactory financing be arranged
First-time car-buyers may also want to consider a condition related to finding affordable insurance. Very often, young car buyers, or car buyers who have a bruised driving record, may face very expensive insurance rates, with monthly payments that are higher than their car loan payment.
Get Conditions in Writing!
Verbal promises or representations can be difficult to prove, so it is vital to get all conditions in writing. Note: a dealer can refuse to agree to a condition – it is then up to the customer to decide if he/she wants to proceed with the purchase.
Rescission Under the MVDA
Section 50 of the General Regulations of the MVDA allows a customer to cancel a contract within 90 days of delivery if the dealer and contract fails to disclose (or fails to disclose in a timely way):
- The previous use of the vehicle as a taxi or limo
- The previous use of the vehicle as a police or emergency service vehicle
- The previous use of the vehicle as a daily rental (unless the vehicle has subsequently been owned by someone other than a dealer)
- The make, model, and model year of the vehicle
- That a vehicle has been branded (irreparable, salvage or rebuilt), and how last classified
- The actual distance the vehicle has travelled. When that cannot be determined, a dealer must make the appropriate disclosure statement
Note: A margin of error is allowed to the dealer where he or she determines the total distance driven, or, when he or she cannot determine the total distance driven, but can determine the distance driven as of some past date. The disclosure of distance made by the dealer is deemed to be accurate if it is within the LESSER of 5 per cent or 1,000 kilometers of the correct distance required to be disclosed.
Template Letter Requesting Rescission under the MVDA
Consumers seeking to rescind a contract due to a failure to make one of the required disclosures mentioned above may send a letter to the dealership informing them of the intention to cancel the agreement. This is an example of how a rescission letter should be worded.
OMVIC recommends sending the letter in a manner that provides proof of delivery.
Rescission Under the CPA
Consumers may be entitled to request the cancellation of an agreement if they have been victims of unfair practices. The CPA defines unfair practices as those involving false, misleading, deceptive or unconscionable representations.
Consumers have up to one year from the date of contract signing to request rescission under the CPA. Note: as a considerable amount of time may have lapsed before rescission is granted under the CPA, the courts may allow dealers to charge for usage if a contract is rescinded under the CPA.
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