Difference between revisions of "Problem with a Used Car"

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.

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.

Dial-A-Law © People's Law School is licensed under a Creative Commons Attribution - NonCommercial - ShareAlike 4.0 International Licence.

@@ Line 1: / Line 1: @@
-{{Dial-A-Law Blurb}}
+{{REVIEWEDPLS | reviewer = [https://www.carboncure.com/ Mario Garcia], CarbonCure Technologies |date= October 2022}} {{Dial-A-Law TOC|expanded = cars}}
+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.
-{{Dial-A-Law TOC|expanded = autos}}
+==What you should know==
-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.
-Understand your legal rights
+===You’re protected by the legal warranty===
-Who you buy a used vehicle from affects your rights
+Under the law in BC, a level of quality, performance and durability is implied into every sales contract.
-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 Vehicle Sales Authority of BC and follow certain laws.
-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
-Under the 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.
+* fit for the purpose you bought it for
-As well, under BC law, a dealer must give you the following information about the vehicle, in writing:
+* of “merchantable” quality (it has to run)
-Whether the vehicle has sustained damage requiring repairs costing more than $2,000.
+* durable for a reasonable period of time
-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.
+* “as described”
-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.
+These conditions are the '''legal warranty'''. They apply whether the dealer mentions them or not.
-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
+===The legal warranty is more limited if you buy privately===
-documentation and administrative fees
+If you buy privately from an individual, the legal warranty is more limited than if you buy from a car dealer.
-sales tax
-license and insurance fees (separate from ICBC charges)
+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.
-interest costs if the dealer arranges financing for you
-costs of any repairs
+That said, when you buy from a private seller, the car still has to be “reasonably durable” and “as described.”
-costs of any options
-your total cost
+==Take action==
-Tip
+===Possible outcomes===
-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.
+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'''<br>
+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'''<br>
+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 [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].
+{| class="wikitable"
+|align="left"|'''We've got in-depth info'''
+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.
+|}
+'''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.
+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].
+'''Step 4. File a complaint (dealer only!)'''<br>
+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].
+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.
-You are protected by the legal warranty
+:'''Better Business Bureau'''
-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:
+:Receives complaints about local businesses that are members.
-fit for the purpose you bought it for (that is, it has to function as a vehicle)
+:Call 1-888-803-1222
-of “merchantable” quality (it has to work)
+:[https://www.bbb.org/ca/bc Visit website]
-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)
+Complaining to an association a car dealer is a member of can help get their attention.
-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.
+:'''Automotive Retailers Association'''
-The legal warranty is more limited if you buy privately
+:Many car dealers belong to this voluntary organization.
-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.
+:[https://www.ara.bc.ca/ Visit ARA]
-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.
+:'''Recreation Vehicle Dealers Association'''
-Prevent problems
+:A national, voluntary organization for RV dealers.
-Avoid curbers
+:[https://www.rvda.ca/ Visit RVDA]
-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.
+:'''New Car Dealers Association of BC'''
-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.
+:Representing franchised car dealers who sell new vehicles.
-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.
+:[https://www.newcardealers.ca/ Visit NCDA]
-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.
+'''Step 6. Take to social media'''<br>
-Tip
+Consider telling your story on social media. Be factual and truthful about what happened — using foul or insulting language may work against you.
-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.
+Social pressure is powerful. The seller may be motivated to make things right to show they’re good citizens (corporate or otherwise).
-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 problem 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
+'''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.
+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.
-[updated June 2018]
+Seeking legal advice can help you clarify your options.
-'''The above was last reviewed for legal accuracy by Ian Christman,Vehicle Sales Authority of BC.'''
+:'''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
+:[https://www.accessprobono.ca/our-programs/lawyer-referral-service 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
+:[https://www.accessprobono.ca/get-legal-help 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. [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 Copyright}}
-{{Dial-A-Law_Navbox|type=auto}}

Difference between revisions of "Problem with a Used Car"

Latest revision as of 06:32, 30 September 2023

Contents

What you should know

You’re protected by the legal warranty

The legal warranty is more limited if you buy privately

Take action

Possible outcomes

Steps to take

More on each step

Go deeper

Navigation menu

Difference between revisions of "Problem with a Used Car"

Latest revision as of 06:32, 30 September 2023

What you should know

You’re protected by the legal warranty

The legal warranty is more limited if you buy privately

Take action

Possible outcomes

Steps to take

More on each step

Go deeper

Navigation menu

Search