When buying their next used car or truck, many find offers from private sellers hard to ignore — especially when the price is lower than an equivalent model from a local dealer. Unfortunately, not all private sellers are who they claim to be.
If you’re looking at a vehicle from a private seller who has multiple vehicles for sale, or if a vehicle has only been registered to the seller for a short period of time, alarm bells should start to ring. The chances are good that you’re dealing with a “curbsider”.
Curbsiders are individuals who are in the business of buying and selling vehicles, but do not have a professional licence to do so. In Ontario, dealers must undergo a strict vetting process and pass a course in automotive law and ethics to get a licence. According to OMVIC, Ontario’s vehicle sales regulator, as many as 25% of private sales are conducted by curbsiders. With supply-chain shortages continuing to affect the vehicle industry and used-car values rising as a result, the practice is on the rise.
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In OMVIC’s experience, because curbsiders are already operating illegally, there is a greater risk that they’ll also subject vehicle buyers to other illegal practices, such as odometer rollbacks, selling a car that was previously an insurance write-off or withholding other important aspects of the vehicle’s history. As with any other private sale, the consumer’s only recourse in the event of a deception, such as buying a vehicle that quickly proves to have terminal mechanical issues, is to pursue a civil prosecution – if the curbsider hasn’t already disappeared from sight.
Even a legitimate private sale is never without risk, however, so OMVIC recommends that consumers take sensible steps, such as asking for or purchasing a vehicle history report, to ensure they’ve taken steps to understand the previous use and history of the vehicle.
Obtaining a Used Vehicle Information Package (UVIP) from the seller is a legal requirement for private sales in Ontario and will provide details of ownership history and outstanding liens. A more comprehensive history report from CarFax is a great option, too. Check that the vendor’s ID matches the vehicle ownership, get the car inspected by a trusted mechanic and beware of a deal that is too good to be true. It probably is!
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Buying a vehicle from an OMVIC-registered dealer offers greater peace of mind than a private sale, and not just because of the registration and licensing process. “Shopping from a registered dealer provides you with access to pieces of legislation that might help you if you encounter a problem,” notes Tim Hines, OMVIC’s director of consumer support. “When you buy from a business in Ontario, you have protections under the Consumer Protection Act (CPA) and when you buy from an OMVIC-registered dealer, you have additional protections under the Motor Vehicle Dealers Act (MVDA).
“A dealer must use all-in price advertising and is obliged to make certain disclosures about the vehicle’s past history and condition,” he continues. “If a dealer does not fulfill their legal obligations under the MVDA, the consumer has certain cancellation rights and may be eligible to make a claim to the Motor Vehicle Dealers Compensation Fund.
“For example, if a dealership I bought from goes out of business before they submitted my extended warranty application, then I could apply to the Compensation Fund. If I buy from a curbsider, I have no access to the Compensation Fund. Even if I find out that there was a major misrepresentation, like the odometer had been rolled back on my car, it doesn’t matter. My only option would be to pursue that as a civil case.”
OMVIC maintains a list of all registered dealers. If you’re buying from an individual or business that doesn’t appear on the list, you can double-check with OMVIC’s consumer support team to check whether you’re dealing with a licensed seller.
Many of the calls to the consumer support team come post-purchase, but Hines urges consumers to reach out early in the buying process – whether they have concerns about a sketchy seller or simply need information from a trusted source. “OMVIC is here to help, right from the start of the purchase journey. We can provide advice, resources and tools that help along the way.”
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OMVIC also collects information on curbsiders for its investigators in the enforcement department. At the time of writing, OMVIC had more than a dozen unregistered dealers before the court, among them private individuals, vehicle recyclers, rental companies and repair shops. If you think you might be dealing with a curbsider, call 1-888-NO-CURBS (662-8727) or email [email protected].
“Having a license to sell cars in Ontario is a privilege, not a right,” sums up Hines. “OMVIC vets the people coming into the industry to help protect consumers. Many private sellers are genuine, but neither they, nor illegal curbsiders, provide access to protections under consumer protection legislation like the CPA and MVDA.”
During this busy car-buying season, visit omvic.on.ca to access free car-buying resources to get you started and sign up for the quarterly newsletter, Consumer Line.
Contact OMVIC’s Consumer Support Team at [email protected] or 1-800-943-6002 for expert advice and answers to all your car buying questions.
To see if you are eligible to receive financial assistance from the Compensation Fund, contact OMVIC at 1-800-943-6002 or email [email protected].
Follow OMVIC on social media to stay up to date on the latest news.
IG: @omvic_official
Twitter: @omvic_consumers
Facebook: Ontario Motor Vehicle Industry Council (OMVIC)
This story was created by Content Works, Postmedia’s commercial content division, on behalf of OMVIC.
Keyword: Only motor vehicle dealers registered with OMVIC provide access to consumer protection legislation