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Buying a used car in Ontario is safer than it’s ever been before.

Buying a used car in Ontario is safer than it’s ever been before. The government of Ontario has strict laws for used car dealers to help and protect car buyers when buying a new or used car.

I have been in the used car business for five years now and being an owner and operator of a used car dealership in Scarborough Ontario I wanted to point few important responsibilities that a car dealer must oblige.


The most important factor when you are buying a used car its the PRICE! In Ontario it’s your right to have all-inclusive price whenever you see a used car ad from a dealer.

That means the dealer who is advertising a car for sale he or she must explicitly specify all inclusive price and must include all required fees that it comes with when you purchase a vehicle, i.e., Transfer fee, Delivery charges and so on.

Previous History:

In Ontario, dealers must provide a potential car buyer with all the known history such as if the vehicle has been to any accidents, as well as the previous use as a Limo, Rental Car or Emergency vehicle.

Dealers are also obliged by law to provide the real mileage of the vehicles and whether if the odometer has ever been tempered.


In Ontario, Dealers must disclose on the bill of sales what is the maximum payout for a warranty and their deductibles

Usually, warranty companies have maximum payout limits on each plan, and they start from 500$ and go up to 5000$ per claim and sometimes they have deductibles too. So by law dealer must disclose maximum payout and their respective deductible.

By now you probably learnt few important disclosures a dealer must provide to a potential car buyer but wait!! Don’t get too excited there is more…

All car sales in Ontario are covered under Consumer Protection Act of Canada (CPA) that means if you bought a car from a used car dealer, the vehicle must be in merchandise quality, and it should not break or give you problems within a reasonable amount of time.

The Consumer Protection Act of Canada further protects you if the dealer failed to provide you with disclosures mentioned above on a bill of sale for up to 3 years,

So that means if even by mistake a merchant failed to disclose any information on bills of sale the buyer have up to three years to get compensation from a dealer and sometimes full refund.

Ontario has also put Compensation Fund in order to help car buyers if a used car dealers fails to pay back.

The Motor Vehicle Dealers Compensation Fund, referred to as the Compensation Fund, is a consumer protection program financed by Ontario’s registered motor vehicle dealers.

If something does go wrong with a motor vehicle purchase or lease agreement, consumers have access to the Compensation Fund which provides financial assistance to consumers who make a valid claim for a vehicle transaction against an OMVIC-Registered Dealer” Source

Thank you so much for reading my blog, and I hope you have a wonderful car buying experience.

Mohsin Khalid

Owner and Operator

Octane Used Cars

4614 Kingston Rd

Scarborough ON M1E 2P4

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