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CarProof Verified BC
The Motor Vehicle Sales Authority of B.C. is pleased to join with ICBC and the reputable motor vehicle dealers of the province in recommending the services of CarProof, a Canadian company that has built a vehicle search network to provide the most comprehensive, accurate and timely used-vehicle history report available in British Columbia today. Using the Internet, by searching the VIN (Vehicle Identification Number), CarProof can supply a complete vehicle history.
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"Test Drive" the Salesperson before you buy a vehicle
As you visit or call dealerships to locate the exact vehicle you want to buy, you can also “test drive” the salesperson. In other words, you can determine if this is a person you want to do business with. It’s a good idea to consider this issue ahead of time, before you get into the details and deal-making phase of the process.
- The first question you should ask is … Does the salesperson have a valid VSA Salesperson License?
- The second step is to evaluate the salesperson. Ask yourself if you feel comfortable dealing with him/her. Is he/she relaxed and open? Does he/she respond to your needs? Does he/she return your phone calls? Does he/she answer your questions in a straightforward manner? By considering these issues you should have a good sense of whether or not you want to establish a relationship and buy a vehicle from that salesperson.
- When you feel comfortable with a salesperson, and if the dealership has the vehicle you’re interested in, make an appointment with the salesperson to test drive the vehicle, preferably when the dealership will not be too busy. You should not feel obligated to purchase a vehicle simply because you test drove the vehicle.
- The job of the salesperson is to help each customer find and purchase the right vehicle to meet their needs. By building a positive relationship with a salesperson you will have a contact at the dealership in case of any questions or problems. You will also have a contact in the industry when you or a friend of a family-member is thinking about purchasing a vehicle in the future.
What You Need to Know About Buying a Vehicle
A vehicle, whether new or used, is a major purchase, both in terms of the initial cost and the expense of keeping it on the road. Yet most people buy with very little knowledge of the product. Following are some things you need to know about buying a vehicle:
Before You Buy
The more research you do beforehand, the more likely you are to get a good quality vehicle for a good price. Before you buy:
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Define your budget. This will help you set limits before browsing through advertisements or venturing onto sales lots where it's easy to be impressed with sales promotions or special features on a vehicle model that is beyond your price range. Setting a spending limit also helps you decide whether you're in the market for a new or used vehicle;
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Visit a library or bookstore where you'll find helpful books on shopping for vehicles. They provide ratings for both new and used vehicles, comparing factors such as safety, performance, comfort, reliability, warranties and resale value;
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Study ads and visit dealer lots to get an idea of market values. This way you'll be better able to judge a good buy or a buy that's "too good to be true"; and
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Talk to your mechanic about which vehicles are good value for the money. If you don't have a good mechanic, ask friends to recommend one.
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Choosing a Dealer
Choosing a dealer is an important decision. To find a reliable, dependable and honest dealer, talk to people you know to see if they know one they can recommend.
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Check that the dealer is licensed through the Motor Vehicle Sales Authority.
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Check the dealer's business record with your local Better Business Bureau;
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It you expect to continue doing business with the dealer, keep in mind how near the dealership is to your home. Driving many miles for repairs and service may be costly in time and money; and
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If you're buying a new vehicle, service is important. Check the service department. Does it seem efficiently run? Do customers appear satisfied when they leave? Are courtesy vehicles provided?
Be wary of dealers who make exaggerated or highly improbable claims in their advertising. Dependable business people in the auto trade field publish truthful, believable advertising and try to promote fair trade practices that earn public confidence.
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Choosing a Salesperson
As you visit or call dealerships to locate the exact vehicle you want to buy, you can also “test drive” the salesperson. In other words, you can determine if this is a person you want to do business with. It’s a good idea to consider this issue ahead of time, before you get into the details and deal-making phase of the process.
- The first question you should ask is … Does the salesperson have a valid VSA Salesperson License?
- The second step is to evaluate the salesperson. Ask yourself if you feel comfortable dealing with him/her. Is he/she relaxed and open? Does he/she respond to your needs? Does he/she return your phone calls? Does he/she answer your questions in a straightforward manner? By considering these issues you should have a good sense of whether or not you want to establish a relationship and buy a vehicle from that salesperson.
- When you feel comfortable with a salesperson, and if the dealership has the vehicle you’re interested in, make an appointment with the salesperson to test drive the vehicle, preferably when the dealership will not be too busy. You should not feel obligated to purchase a vehicle simply because you test drove the vehicle.
- The job of the salesperson is to help each customer find and purchase the right vehicle to meet their needs. By building a positive relationship with a salesperson you will have a contact at the dealership in case of any questions or problems. You will also have a contact in the industry when you or a friend of a family member is thinking about purchasing a vehicle in the future.
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Unlicensed Dealers
If at all possible, deal with licensed dealers only. Unregistered dealers, also known as "curbers", offer vehicles at discounted prices but there are risks. Some curbers alter odometers, fail to disclose liens, or misrepresent a vehicle's history. If you buy from unlicensed dealers you may find it hard to get compensation when there are problems. Beware of unregistered dealers posing as private sellers; if you see the same telephone number repeated for different vehicles in newspaper ads, the seller is probably a curber.
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Buying a New Vehicle
Before buying a new vehicle, check rating guides at your library or bookstore. They rate engine, transmission, brakes, safety features, etc. and you can compare quality against price.
Better Business Bureaus report fewer complaints about new vehicles.
A new vehicle owner should:
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Read the owner's handbook that comes with the vehicle to find out servicing requirements. Warranties and guarantees may be voided if the vehicle isn't properly serviced.
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Understand exactly what's covered and what isn't before purchasing an extended warranty. Ask about specific procedure for making warranty claims.
Under consumer protection laws, the dealer must clearly display the serial number or vehicle identification number (VIN), make, model and selling price of a new vehicle. The price must include all extras and optional equipment, transportation charges for delivery to the dealer and any pre-delivery service charged by the dealer.
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Buying a Used Vehicle
Better Business Bureau statistics show the used vehicle market is a major source of consumer complaints. Unfortunately, many used vehicles are bought by people who have limited information. These buyers depend largely on what they see in a quick examination and what they're told by a private seller or by a salesperson who may be unaware of defects not revealed by the previous owner. Often their decision is made hastily and under pressure.
In fact, only a trained specialist, using highly technical equipment, can make an accurate appraisal of a vehicle's condition once it's out of the "new" vehicle class.
There are many highly reputable used vehicle dealers who offer good buys at competitive prices and stand behind their guarantees. There are also those who aren't reliable. Vehicle dealing attracts some operators who are out to make a fast dollar and don't care about repeat business. Buying a used vehicle is one of the most common areas in the marketplace where the unknowledgeable and unwary buyer can get “taken”.
The keys to successfully buying a used vehicle are to do your research, get expert help, and get every part of the deal in writing.
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Deposits
Be sure you understand the dealer’s deposit, return or exchange policy before you sign any documents. Remember, the term deposit can be used to describe quite different things.
Depending on when it is taken in a transaction, a deposit may be a separate agreement for a variety of services. It could be an agreement for services:
- to hold a vehicle;
- to locate a vehicle;
- to bring in a vehicle; and/or
- to arrange financing for a vehicle.
If the taking of a deposit is part of an agreement to purchase a specific vehicle when all the terms and conditions are known, it may be a partial payment.
The terms and conditions of the giving and the taking of a deposit or partial payment must be clear and unambiguous and must be provided to you. At a minimum, the taking of a deposit requires a motor dealer to set out in writing:
- Clearly distinguishing a deposit from a partial or down payment;
- Clearly stating the purpose for which the deposit is taken;
- Clearly stating the amount of the deposit;
- Clearly stating when the deposit will or will not be refundable;
- Clearly stating any other agreed to terms such as whether a deposit will be credited towards the purchase of a vehicle; and,
- Provide the consumer with a copy of the deposit agreement.
If there is a written purchase agreement, the Motor Dealer Act Regulation requires motor dealers to detail the terms and conditions under which a deposit may or may not be refundable. Even when a deposit is stated to be non-refundable, there may be situations when a deposit will be refundable; such as when a dealership cannot deliver on its promise.
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Dealers
You are encouraged to buy your used vehicle from a well established, reputable, registered auto dealer. Their reputation is your best guarantee if things go wrong, and you may be protected under the Business Practices and Consumer Protection Act and the Motor Dealer Act. Also, a dealer may offer some protection through a warranty, may be able to offer financing and may take your old vehicle in trade.
Private Sales
Private sales account for close to 70 percent of used vehicle transactions in BC. A private seller may offer a vehicle at a lower price and may be able to provide first-hand knowledge of its history.
Take care, however, to avoid being taken by dishonest sellers. It will be difficult to get compensation from a private seller if there are problems with the vehicle. Also, if you buy a vehicle that's been stolen, you won't be able to register it and could lose both the vehicle and your money.
If you decide to buy from a private individual, check the following:
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Make sure you examine the vehicle registration form closely. Insist on seeing the original, not a photocopy. Is the vehicle registered in the name of the seller? Verify the owner's address with the registration form and the location of sale;
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Does the vehicle identification number on the form match that stamped on the identification plate on the vehicle dash?
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If the seller claims to have owned the vehicle since it was new, or for any length of time, ask to see repair bills and maintenance records;
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Ask about the vehicle's accident history. Has the vehicle ever been in an accident? If so, what was the damage and who fixed it? Is the auto body shop that repaired the vehicle approved to do ICBC repairs?
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If the seller makes specific claims about the vehicle, such as saying it has a new transmission or rebuilt motor, get it in writing; and
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Consider having the vehicle examined by a mechanic.
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Preliminary Evaluation
In taking a first look at a vehicle, leave the mechanical examination to an expert. Do a non-mechanical checkup yourself, including:
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Check upholstery
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Check floor coverings
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Ensure doors and windows open and close
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Note odometer reading
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Look for sticker showing last servicing. Does it correspond with odometer reading?
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Evaluate condition of tires
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Check trunk for spare tire, jack and wheel wrench
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Check paint work, chrome and body metal; look for filled in rust holes. A magnet can be used to check for filler
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Talk with the last previous owner if possible, or with the service station operator shown on the service sticker
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Road Testing/Mechanical Testing
After the preliminary evaluation, if you're still interested in the vehicle, follow-up with a road test and a checkup by a competent mechanic. Any reputable dealer will allow this - you should not do business with them if they refuse. With private sales this is also a must.
If you are using the services of a mechanic or vehicle diagnostic clinic, have the vehicle road tested, driving it at varying speeds over different types of road.
Get the vehicle checked by a qualified, independent mechanic before buying it or making a deposit. Even if the mechanic doesn't find anything seriously wrong, there may be minor problems that need attention.
This information will help in price negotiations and can more than offset the mechanic's fee.
The "Certificate of Roadworthiness" is NOT a guarantee the vehicle is mechanically sound. It states only that the vehicle meets minimum legal requirements for such parts as brakes, lights, horn, steering, etc. and can therefore be licensed. The vehicle could still have serious engine clutch, transmission or other faults which could involve major expense.
The BCAA will do a vehicle check for a minor fee and the cost varies in each city. For more information outside the lower mainland call the Automotive Consumer Information Line at 1-800-663-4636. Callers in the lower mainland can phone BCAA Vehicle Inspections at (604) 298-2755.
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Checking for Signs of Structural Repair
The engine isn't the only item to consider when buying a used vehicle. The condition of the frame and body is just as important because proper frame and body repairs can often cost more than the vehicle is worth and improper repairs can be structurally unsafe. Your mechanic will look for signs of structural repair, including:
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Checking the paint - do all of the vehicle's panels match? Is there paint overspray or primer in the doorjambs, trunk or engine compartment? These are signs the vehicle has had body repairs
- Checking the gaps between body panels - are they equal? Unequal gaps may indicate improper panel alignment or a bent frame. Do the doors shut properly?
- Checking the frame for severe rusting or obvious repairs
- Checking that the keys open all door and trunk locks - if not, the doors and trunk lid may have come from different vehicles
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ICBC Crash Line
Check the vehicle's accident history. Records are available for $20 through ICBC at 1-800-464-5050 or 604 661-2233 (Vancouver). You'll need the vehicle ID number, the make, model and year. About 60 per cent of all vehicles are listed in their database.
Check for Liens
Check for liens against the vehicle, especially when buying from a private individual. Some used vehicle buyers have been surprised to find a tow truck in their driveway hitching up to their recent purchase because a garage had a lien against the vehicle for unpaid repairs or its former owner had a loan on the vehicle.
- You'll need the vehicle's 17-digit VIN. Liens can be checked at the Personal Property Registry at 940 Blanshard Street in Victoria (250) 387-6881, at Motor Vehicle Branch Driver Service Centres or at your local Government Agent's office. There is a small fee. Banks, credit unions and finance companies also provide this service at a slightly higher fee.
- Beware that if there's a lien on the vehicle in another province, it could be seized. Contact the Personal Property Registry for lien search information in other provinces.
- If there's a record that you searched for liens in BC and none was registered when you took ownership, a lien holder will not be able to take your vehicle away. There is a slight possibility a lien could be registered between the time you do a search and when your deal is finalized. To guard against this, make your purchase subject to a condition that the vehicle is free from liens at the specified time of sale.
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Beware of Stolen Vehicles
Organized theft rings have turned the stolen vehicle trade into a national and international business. Many stolen vehicles are "laundered” in the same way crime syndicates move money. Take extra care when buying a vehicle privately. If you make the mistake of buying a stolen vehicle, you could lose your vehicle and your money. ICBC offers the following tips to ensure you're not buying a stolen vehicle:
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Insist on seeing the vehicle at the driver's residence; ask yourself if the seller suits the vehicle. Ask for identification and match the address with the location on the vehicle registration form. Vehicle thieves may deal with you by cellular phone and insist on bringing the vehicle to you;
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Examine the vehicle identification number plate for tampering, and match the VIN with the registration form and the Federal Standards Sticker (usually found on the driver's door post);
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Beware if the vehicle price is too good to be true or if the seller is too easy to deal with, insists on cash, needs payment right away or says they are selling the vehicle for a friend. Don't let yourself be rushed.
The Canadian Police Information Centre (CPIC) is an integrated, automated system that provides information on crimes and criminals. You can now search the national database of police records for stolen vehicles by vehicle identification number or licence plate.
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The Contract
If you buy from a private owner, the seller will give you the Owner's Certificate of Registration and a signed Transfer/Tax form (available from any Autoplan agent). You then take these papers to an Autoplan agent, who will process the transfer of ownership. Make sure the seller has completely filled in their portion of the form.
If you're buying from a dealer, you'll first sign an “Offer to Purchase". Problems sometimes arise if the buyer doesn't understand this form. Don't take the signing of this document lightly - the dealer can turn your offer down or accept it and consequently bind you to buying the vehicle. It's also common practice for the dealer to ask for a deposit to accompany the offer and if you cancel, the deposit is forfeited. Review every section of the document and have them fill in all areas or put a line through them.
The purchase offer should include all the items you want spelled out as part of the total deal, not just the price you're willing to pay. Make sure any deposit refund agreements are noted in writing.
The final sales contract must contain details of the entire deal, such as full price, trade-in allowance (if any), and a description of the trade vehicle; carrying charges for financing if this is done through the dealer, with dollar amount and percentage; repayment terms, taxes, insurance premium, license fee, gas, etc.; a complete description of the vehicle itself; and the date when you are to take possession.
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Warranties and "As Is"
If you buy from a private owner, you almost always buy "as is". You negotiate price on the basis of your evaluation of the vehicle and what you think will be needed to correct any defects.
When buying from a licensed dealer, particularly an older model vehicle, the dealer may try to sell the vehicle "as is" - that is, without undertaking any repairs and without any warranty. However, the dealer is responsible for insuring that the vehicle complies with the Motor Vehicle Act for minimum vehicle safety standards. The dealer is also responsible for disclosing and documenting any and all material defects that exist at the time of the transaction. A notice included on a sales contract that discloses that a vehicle is sold "as is" (with no representations as to quality or condition) would not absolve the dealer from responsibility where there were other deceptive representations.
For the vehicle that is not sold "as is", there are two types of warranties - the one given by the manufacturer and the one given solely by the dealer. Some late model used vehicles may still have the manufacturer's warranty in effect. If so, make sure it continues beyond the first owner.
If the manufacturer's warranty is no longer in effect, dealers may offer their own warranty. An ideal dealer warranty would be 30, 60 or 90 days, covering everything, including parts and labor. A common dealer warranty is "30 days, 50/50 parts and labor", which is quite reasonable providing any repairs needed may be done at a garage agreed to in advance.
If the dealer claims to have done a paint job or installed a new or rebuilt engine, a new transmission or new tires, these items should be specifically stated and guaranteed on the sales contract for a set length of time. Any warranty should:
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be in writing;
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be part of the contract;
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be signed by the dealer, not just the salesperson;
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be specific, with details of what is covered and for how long; and
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contain a statement confirming the selection of garage services, in the event of a breakdown.
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Transfer Documents
Always fill in the section that applies to you, whether buying or selling. Make sure the section pertaining to the other party is also correctly filled out. Don't sign a blank document, put a line through any areas that don't apply. You don't want them filled out after the fact.
Consumer Protection
Anyone in BC who is in the business of selling or exchanging motor vehicles must be registered with the Registrar of Motor Dealers. Motor dealers are also required to contribute to a compensation fund for consumers who suffer financial losses in cases of dealership failures or dishonest conduct (see Motor Dealer Customer Compensation Fund, below).
The Motor Dealer Act requires full disclosure of essential details about motor vehicles, as well as financing conditions and warranties, and there are rules against deceptive practices such as rolling back odometers on used vehicles and rules about handling money held in trust for consignment sales.
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Disclosure
Dealers must post the asking price (including extras) on any automobile offered for sale. Under the law, a dealer must clearly display the serial number or vehicle identification number make, model and selling price of a new vehicle. The price must include all extras and optional equipment, transportation charges for delivery to the dealer and any predelivery service charged by the dealer.
Sales documents must include all additional charges including taxes, the cost of borrowing if the balance is financed through the dealer and the cost of any additional repairs or options.
In addition to the above requirements written sales agreement for used vehicles must include:
- whether the vehicle was brought in for sale from outside the province and the name of any other jurisdiction where the vehicle was registered if known to the dealer;
- if it was used as a police car, taxi, emergency, lease or rental vehicle;
- whether the odometer accurately records the true distance traveled or kilometres indicated; and
- if the vehicle had sustained damage which cost more than $2,000
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Consignment Sales Regulations
New consignment sales regulations require dealers to use plain language contracts. Dealers must deposit funds in a trust account.
The purchase agreement for a consigned vehicle must contain:
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a complete vehicle description;
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the total price including any down payment, trade-in value, and fees; and
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disclosure that the vehicle was consigned.
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Importing a Vehicle
Some vehicles need to be modified to meet Canadian standards. Before purchasing a vehicle that you want to bring into Canada, you should call the Registrar of Imported Vehicles at 1-888-848-8240 for more information.
You'll need
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the model of the vehicle;
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the manufacturer's name; and
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the date the vehicle was manufactured.
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Motor Dealer Customer Compensation Fund
The Motor Dealer Customer Compensation Fund offers buyers of motor vehicles, or extended "in-house" warranty plans from registered dealers, the ability to claim up to $20,000 in cases of dealership business failure, dishonest conduct or failure to provide clear title. Each of the more than 1,600 registered motor vehicle dealerships in BC contributes to the fund. The Motor Dealer Customer Compensation Fund Board, with representation from consumers, industry and government, administers claims.
Resolving Disputes
The Canadian Motor Vehicle Arbitration Plan is available to help if you have a dispute with an automobile manufacturer and you haven't been able to secure satisfaction from the manufacturer yourself. This applies to vehicles that are no more than four years old. CAMVAP will settle disputes over interpretation, application or administration of vehicle warranties and defects in workmanship or materials on a vehicle as supplied by the manufacturer to an authorized dealer.
If a CAMVAP arbitrator rules in favor of the consumer, compensation may be in the form of repairs, money, replacement of the vehicle, or buy-back by the manufacturer. No fee is charged for the program. For more information, contact your local Better Business Bureau or call CAMVAP at 1-800-207-0685.
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Leasing a Vehicle as an Option to Buying
Leasing is an increasingly popular way to obtain a vehicle. For more information, see the Leasing a Vehicle section which includes details on consumer protection regulations such as disclosure requirements and plain language contracts.
More Information
If you have questions about this information, please contact:
VSA, Suite 208-5455 152 Street,
Surrey, BC, V3S 5A5,
Tel: (604) 574-5050,
Fax: (604) 574-5883
enquiry@mvsabc.com
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