Improving Protection for Consumers Buying Cars

Ontario is providing consumers with improved protections when they buy or lease new and used cars.

The province's new Motor Vehicle Dealers Act, 2002 (MVDA) that came into force on January 1, 2010, requires dealers to:

• Disclose a vehicle's true condition and history before consumers sign contracts.
• Adopt "all-inclusive pricing" when advertising new and used vehicles, including freight, dealer preparation and other miscellaneous charges.

Consumers will also be able to cancel a contract within 90 days if a dealer fails to disclose certain key items such as accurate odometer-readings, the correct year or model, and the previous use of the vehicle.

Improved protection from the Motor Vehicle Dealers Compensation Fund, with an increase from $15,000 to $45,000 in coverage, will also allow consumers to recover deposits should a dealership goes out of business.

The Motor Vehicle Dealers Act, 2002 is administered by the Ontario Motor Vehicle Industry Council (OMVIC) on behalf of the Ontario government.

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