If someone comes to your home to sell you something and you sign a contract, there is a 10-day cooling-off period where you can change your mind for any reason. However, when you walk into a car dealership, it’s a different story.
As soon as you sign a contract to purchase a vehicle and leave a deposit, you’re expected to follow through with it and complete the sale.
Sudhir Nagi of Scarborough went car shopping with his wife and decided they would move from a gas-powered vehicle to their first electric car.
“My wife actually signed the paperwork, and we decided we would trade our Honda CRV, and we were thinking we would get an electric vehicle,” said Nagi.
The couple decided to put down a $1,000 deposit on an EV, but when they got home, they had second thoughts and were concerned about how many kilometres they would use it for each year, as well as the cost of insurance and installing an electric charger.
“We started thinking, ‘You know it wouldn’t make sense given the number of kilometres we drive.’ It won’t make much sense for us given the price of the new one (electric vehicle),” said Nagi.
He then called the dealership to cancel the contact, but he was told the deal was final, they would be keeping his deposit, and he was expected to follow through and purchase the car.
“I was shocked. You’re not given a choice once you put your signature on it (the contract),” said Nagi.
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The Ontario Motor Vehicle Industry Council (OMVIC) recently had an online ad campaign warning car buyers that there is no cooling-off period in Ontario when it comes to buying a car.
OMVIC’s website also states to avoid problems buying cars in Ontario, understanding sales are final unless the contract includes conditions allowing for cancellation. Buyers should ensure all promises are documented in writing and make sure they understand the timing if a vehicle is not in stock or must be factory ordered.
They should also ensure contracts are complete, including finance terms, and consumers should only move forward and sign a contract if they are certain they want to purchase a vehicle, according to OMVIC.
Nagi did not purchase the EV he signed a contract for, but he did lose his deposit. He says he would like to get his $1,000 back.
“Of course, I would like to get that money back. I’m retired; I don’t have that kind of money hanging around,” said Nagi.
