Students warned to kick curbsiders to the curb
By Leanna Roy
News
Editor
August 31, 2010
Anyone who's ever shopped online knows that there is a risk they will receive a broken product in the mail.
Imagine paying for a used car only to learn that you have been sold a stolen vehicle that doesn't work properly.
When purchasing a vehicle from a dealership that is not registered by the Ontario Motor Vehicle Council (OMVIC), you may end up dealing with a similar situation.
Robert Kirsic, communications assistant at the OMVIC warns that unsuspecting students have been known to purchase cars that have been stolen or do not work as properly. These are called curbsiders.
Studies show that as many as 25 per cent of all private vehicle ads are placed by curbsiders.
The OMVIC is a regulatory body that licences motor vehicle dealers and salespeople. OMVIC provides a free complaint-handling service for consumers and a compensation fund for those who have lost money on a vehicle transaction.
The council recommends students buy through an Ontario-registered dealer to avoid the hassles and headaches, and out-of-pocket expenses, they will have if they buy from a curbsider.
OMVIC launched the "Buy with Confidence" program in 2009, that has given Ontario the ability to easily identify safe dealerships.
Now, all professional dealers in Ontario are required by law to register with OMVIC, the regulator of Ontario’s motor vehicle sales industry.
The OMVIC provides several ways a shady dealer can be spotted. For example, curbsiders will often conduct business over a mobile phone or Internet as opposed to a business number. They are also hard to track down and typically have no history within the community.
This program has drastically changed that way that cars are bought and sold but there are still dangers warns the OMVIC.
“All consumers deserve to know exactly what they are getting before they decide to buy,” said Consumer Services Minister Sophia Aggelonitis. Dealers are now obligated to disclose the true history and condition of a vehicle, including whether it was used as a taxi or police car.
Some other things students should know before they buy “zero per cent” or low interest rate offers are popular, but often you have to pay more for the car if you opt for the low interest rate. This means the true cost of borrowing or leasing may be far more than the ad implies.
Make sure you find out how much the vehicle would be if you arranged your own financing. The difference can be considerable.
Review ads carefully, especially when comparing deals. All registered dealers are now required to include the total cost of a vehicle being advertised.
Also known as "All-In Pricing", this includes the price of the vehicle and all other charges (except taxes).
Terms such as “going out of business,” “closing,” “bankrupt,” “fleet sale,” “factory price,” “invoice prices,” “supply limited” or “limited time only” imply a vehicle is being sold outside of regular business practices.
Dealers can’t use these terms without a full explanation of the situation.
Only 25 per cent of private dealerships ads are placed by curbsiders, so not all private dealers are crooks. However, by law, private sellers must obtain a Used Vehicle Information Package from the Ministry of Transportation and show it to prospective buyers.
OMVIC advises everyone to be sure to see the seller’s UVIP before you finalize any purchase. They also warn that if the seller doesn’t have the UVIP or if the ownership is in a different name, walk away from the deal. |
