Ontario car buyers have more protection than most people realize, but only if they bought from a dealer registered with OMVIC, the province's vehicle sales regulator. Here's what that protection covers and how to use it.
First: Was It a Registered Dealer?
OMVIC has no authority over private sales, vehicle manufacturers, or repair shops. Everything below applies only if you bought or leased from an OMVIC-registered dealer. For a private sale, your route is small claims court. For a repair shop, it's your provincial consumer protection office.
No Cooling-Off Period, With One Big Exception
Once you sign a contract to buy or lease a vehicle in Ontario, there's no cooling-off period. But under the Motor Vehicle Dealers Act, you can cancel within 90 days of delivery if the dealer failed to disclose, or didn't disclose in time, any of these:
- Previous use as a taxi or limousine
- Previous use as a police or emergency vehicle
- Previous use as a daily rental (with a limited exception)
- The vehicle's make, model, and model year
- That it's branded as irreparable, salvage, or rebuilt
- The actual distance it has travelled
To cancel, send the dealership a letter saying you're cancelling the agreement. Send it in a way that gives you proof of delivery.
The Advertised Price Must Be the Real Price
Under all-in pricing, an advertised price must include every fee the dealer intends to collect, such as freight, PDI, admin fees, and the OMVIC fee. Only HST and licensing can be left out, and the ad has to say so clearly. If the bill of sale has charges the ad didn't include, that's worth a complaint.
How to File a Complaint With OMVIC
1Try the dealer first. Put the problem in writing to the dealer or salesperson.
2File with OMVIC. Its complaint process is free. Use the online form, or call 1-800-943-6002 ext. 1 (Monday to Friday, 9 a.m. to 5 p.m.). OMVIC tries to help resolve the dispute where it can.
The Compensation Fund
If you bought from a registered dealer, you may be able to claim up to $45,000 per transaction. Claims are possible when, for example:
- You paid a deposit but never got the vehicle, or the dealer didn't return the deposit
- A court ordered the dealer to pay you, and it won't or can't
- The dealer went bankrupt or closed
- The dealer misrepresented the vehicle
- The dealer failed to honour an extended warranty or service plan
File within two years. If your claim is denied, you can appeal to the Licence Appeal Tribunal, which charges a fee.
List what was promised, what you got, and every date. That's what OMVIC, the fund, and the court will all ask for.
Draft It With Asya →Frequently Asked
Is there a cooling-off period when buying a car in Ontario?
No. Once you sign a contract to buy or lease a vehicle in Ontario, there's no cooling-off period, unless the dealer failed to make certain required disclosures.
When can I cancel a car purchase in Ontario?
Within 90 days of delivery, if the dealer failed to disclose prior use as a taxi, limousine, police, emergency, or daily rental vehicle, the make, model, or model year, branded status, or the actual distance travelled.
How do I file a complaint with OMVIC?
Try to resolve it with the dealer first. Then use OMVIC's online complaint form or call 1-800-943-6002 ext. 1. The complaint process is free, and OMVIC covers only registered dealers.
How much can I get from the OMVIC Compensation Fund?
Eligible buyers can receive up to $45,000 per vehicle transaction, but only if they bought from an OMVIC-registered dealer.
Sources & Verification
Figures, rules, and contacts in this article come from official sources:
- OMVIC — Complaints
- OMVIC — Cancelling an agreement
- OMVIC — All-in price advertising
- OMVIC — Compensation Fund
- OMVIC — Make a Compensation Fund claim
Learn more about how ComplaintCA verifies information on our About page.