OMVIC Cancelling an Agreement: What You Need to Know
If you are in the market for a new or used vehicle in Ontario, chances are you will be dealing with the Ontario Motor Vehicle Industry Council (OMVIC). OMVIC is the regulatory body responsible for enforcing the laws that govern the retail automotive industry in Ontario. It also provides protection to consumers who purchase or lease vehicles from registered dealerships or salespeople.
One of the protections that OMVIC provides is the ability for consumers to cancel an agreement with a dealership within a certain timeframe. This is known as the cooling-off period, and it is in place to allow buyers to reconsider their purchase without penalty.
When can you cancel an agreement?
The cooling-off period applies to all purchases or leases of new and used vehicles from a registered dealer. The period is for 90 calendar days for the purchase of a new vehicle, or one year for the purchase of a used vehicle.
To cancel the agreement, you must provide the dealership with written notice. The notice can be delivered in person, by registered mail, or by fax. The notice must be delivered within the cooling-off period, and it must state that you are cancelling the agreement.
What happens after you cancel?
If you cancel the agreement within the cooling-off period, the dealership must refund any money you have paid, including your deposit, within 15 days. The refund must be paid in the same form of payment that you used to make the purchase.
The dealership may also charge you a cancellation fee, but this fee cannot exceed $50 or 2% of the cash price (whichever is less).
If you have traded in your old vehicle, you have the right to get it back from the dealership. The dealership must return your old vehicle within 10 days of receiving your cancellation notice.
What are your rights if the dealership does not comply?
If the dealership does not comply with your cancellation request, you should contact OMVIC immediately. OMVIC has the authority to impose penalties and fines on registered dealerships that violate the law.
You also have the right to take legal action against the dealership. This may include filing a complaint with the Small Claims Court or hiring a lawyer to represent you.
In conclusion, the cooling-off period is a valuable protection that allows consumers to reconsider their purchase without penalty. If you are considering cancelling an agreement with a dealership, it is important to know your rights and to act within the required timeframe. If you have any questions or concerns, contact OMVIC for assistance.