These are challenging times for vehicle purchasers with ongoing supply shortages. With these supply issues, some unscrupulous private sellers take advantage of the current environment and the phrase “buyer beware” certainly rings true.
“With supply shortages overwhelming the industry, illegal and unlicensed vehicle dealers, otherwise known as curbsiders, are more likely to leverage this opportunity and target car-buyers,” says John Carmichael, Chief Executive Officer of the Ontario Motor Vehicle Industry Council (OMVIC).
It’s fair to assume that car buyers might not know they’re buying from a “curbsider” as they pose as private sellers. It’s also possible that car buyers might choose to do business with these unlicensed vehicle dealers in the hope of getting a better deal. Whatever the scenario, says Carmichael, the risks outweigh the perceived benefits: “When buying from a private seller, you could potentially be purchasing from a curbsider meaning that the vehicle could be dangerous to drive. There could be risks of odometer fraud or lack of critical information or non-disclosure about the vehicle’s history that could put the driver at risk. Beyond that, you are not protected by OMVIC, the Motor Vehicle Dealers Compensation Fund, or the MVDA (Motor Vehicle Dealers Act).”
“As a car-buyer,” he continues, “consumers need to ensure they are protecting themselves every step of the way by staying educated and informed.”
Buying a car is among the biggest expenses that many will make in their life. For that reason, OMVIC offers several tips for a positive car buying experience:
- Do your research: Before making a deal, do some research to verify the seller’s legitimacy, the vehicle’s value, and what professional reviewers are saying. Taking these steps will safeguard you from purchasing a rebuilt car wreck. Remember, no one sells a vehicle for less than it is worth. If a deal seems too good to be true, that’s a red flag, not an opportunity.
- Identify rolled back odometers: Rolling back a vehicle’s odometer to display a lower mileage is known as odometer fraud and may be done to increase the sale price of a used car. Identifying a vehicle with a rolled-back odometer can be difficult, but there are steps you can take to spot one that has been tampered with such as purchasing a used vehicle information package (UVIP) through ServiceOntario, asking for a vehicle history report (CARFAX) and getting the car thoroughly inspected by a professional.
- Know who you are buying from: Reputable sellers will be open to answering questions about the vehicle and its history. Come prepared with a few questions to ask and request to see the vehicle history report.
- Leverage OMVIC’s resources: Take advantage of OMVIC’s free car buying resources and support by visiting the website (omvic.ca) or calling the consumer support team at 1-800-943-6002.
The OMVIC assurance
Carmichael and the team at OMVIC are all-too-familiar with the pitfalls of transacting with curbsiders. That’s why, for the past 25 years, the industry regulator has committed itself to raising standards and connecting buyers with trusted dealerships.
“OMVIC-registered dealers are licensed individuals who must abide by industry professionalism standards,” notes Carmichael, explaining, “By law, they must undergo background checks and successfully pass an automotive law and ethics course to be eligible for registration with OMVIC.”
Promoting fair and transparent purchases is also among OMVIC’s goals. Consumers who transact with OMVIC-registered dealers have a right to all-in price advertising, full disclosure of vehicle history and condition, cancellation for specific non-disclosures, and access to the Motor Vehicle Dealers Compensation Fund if something does go wrong with the vehicle purchase.
Ultimately, adds Carmichael, “Buying from an OMVIC-registered dealer provides peace of mind knowing you’re protected as a consumer when buying or leasing a motor vehicle.”
OMVIC is the regulator of motor vehicle sales in Ontario with a mandate to maintain a fair and informed marketplace. Visit OMVIC’s website, or connect via Twitter (@omvic_consumers), Instagram (@omvic_official), and Facebook Ontario Motor Vehicle Industry Council (OMVIC).