Problem with a Used Car

When you’re not entitled to anything

Whether you bought from a car dealer or a private seller, you won’t be entitled to anything if:

• You’re unhappy with how much you paid for the car. In BC, there is no "cooling-off period" once you have signed the purchase agreement to buy a used vehicle. This means that you will not be able cancel an agreement just because you changed your mind or because your situation has changed.
• You inspected the car and should have spotted the problem—for example, a dent that was clear to see. The test of whether you should have spotted the problem is whether the average person would spot it. 
• You were told about the problem when you bought the car and someone fully explained what the problem meant.
• You caused the problem. 

In BC, there is no general legal right to return a vehicle once you have taken possession of the vehicle. 

If you bought the used vehicle from a car dealer

Under BC law, when you buy a used vehicle from a car dealer, the vehicle must meet certain conditions. It has to be:

• fit for the purpose you bought it for
• of “merchantable” quality
• durable for a reasonable period of time
• “as described” by the dealer 

These conditions are sometimes referred to as the “legal warranty”, as they are established by a law called the Sale of Goods Act. They apply regardless of whether the dealer mentions them. They are in addition to any warranty the dealer or manufacturer provide. 

When you buy a used car, you can agree to give up (waive) these conditions. But any attempt by the seller to have you waive these conditions must be done in clear and unambiguous language. 

What the conditions that make up the legal warranty mean

"Fit for the purpose", "merchantable quality", "reasonably durable": what do these conditions mean? 

What does “fit for the purpose” mean?

A used vehicle is “fit for the purpose” if it is in roadworthy condition and fit to be driven on the road in safety. It doesn’t have to be in perfect condition.

Fit for purpose can also matter if you buy a vehicle based on the dealer’s advice that it is suitable for a particular purpose. For example, a dealer who suggests you buy a specific vehicle for hauling a trailer is promising that the vehicle will be suitable for that purpose.  

What does “merchantable” quality mean? 

“Merchantable” means usable condition, not perfect condition. So long as a used vehicle can be reasonably used, it is of merchantable quality. Breakdowns and other problems after the sale don’t prove the seller breached the condition that the vehicle be of merchantable quality. If the car runs, it will likely be seen to be usable.  

What does “durable for a reasonable period of time” mean?

In the case of a used vehicle, “durable for a reasonable period of time” does not mean much. A used vehicle will not be expected to last as long as a new one. What is a reasonable time will depend on factors such as: 

• the age of the vehicle  
• the mileage at the time of purchase
• the price paid for it
• the use of the vehicle
• the cost of repairing any defect  

If the engine fails completely a week after the purchase, while you are driving it normally, that may very likely be a breach of the legal warranty of durability—but not necessarily. For example, in one case an 8-year-old car with 140,000 kms, bought for $5,700, was found to be durable for a reasonable period of time even though its engine failed after one month of normal driving. 

What does “as described” mean? 

The vehicle has to match the dealer’s advertising, the description of the vehicle in the purchase agreement, and any statements or representations made by the dealer at the time of the sale. 

If the vehicle doesn’t match the description, the dealer has breached the legal warranty. 

If you were misled or pressured into getting the vehicle

“The Mini Cooper was nice, but I wanted to sleep on it. It was my first car, and I wanted to be sure it was the right one. But the salesperson insisted that the discounted price would expire at midnight. So I signed the agreement. Later, I learned that the dealer was advertising the same discounted price on its website. The salesperson had pressured me into buying the Mini using an 'unfair practice', telling me that I was getting a special price when the offer was in fact the same thing that I could get anytime. Thankfully, I learned that I was entitled to return the Mini and get out of the agreement.”

– Gabriela, Vancouver

Under BC law, dealers are not allowed to use "unfair practices" to convince you to buy a vehicle. Unfair practices include making statements, verbally or in writing, or any conduct that could deceive or mislead you.

For example, dealers must not:

• tell you that the vehicle is of better quality than it really is
• tell you that the vehicle is only available for a limited time if that is not true
• tell you that you are getting a special price or benefit when they are really offering the same thing that you can get somewhere else

Another type of unfair practice is when a dealer does something “unconscionable”. Examples of unconscionable practices include:

• taking advantage of vulnerabilities that you may have that affect your ability to protect your own interests, such as any physical or mental disability, illiteracy or language difficulties
• charging far more than what is reasonable for the vehicle
• pressuring you to buy a vehicle that they know you cannot afford

If the dealer does something “unconscionable”, any agreement you signed is not binding on you.

What if the dealer tells you something that isn’t true?

In addition to the protection against unfair practices, you are protected from any misrepresentations about the vehicle. That is, the dealer must not tell you something about the vehicle which isn't true. For example, if you asked the dealer whether the vehicle had been in an accident, and they said no, and it turned out they knew it had been in two accidents, they would have misrepresented the vehicle.

What a car dealer must tell you

BC law requires a car dealer tell you in writing a number of things about the vehicle:

• the model and year of the vehicle, and its odometer reading at the time of the sale 
• whether the odometer accurately records the true distance travelled by the vehicle
• whether the vehicle has ever had damage that cost over $2,000 to repair
• whether the vehicle is from out of British Columbia 
• whether the vehicle has ever been used as a taxi, police car, emergency vehicle, a lease vehicle, or a rental vehicle, or in organized racing
• everything about the cost of buying the vehicle, including any dealer fees, documentation and administrative fees, licence and insurance fees (separate from ICBC fees), the interest costs if you are financing the vehicle, the cost of necessary repairs, the cost of any options you choose, and the total cost

As well, a dealer must guarantee that the vehicle is free of liens. A lien is a legal claim made on someone else's property to make sure they pay a debt. For example, a bank that loans money to help someone buy a vehicle may place a lien on the vehicle in case the owner fails to repay the loan. If the owner doesn’t repay the loan, the vehicle can be taken as payment.   

If you bought the used vehicle from a private seller

You have fewer rights when you buy from a private seller, and key parts of the Sale of Goods Act don’t apply.

If the seller breaches the legal warranty

For example, there is no legal requirement for a used car you buy privately to be “fit for the purpose” or of “merchantable” quality. 

But in a private sale, the vehicle must still be reasonably durable and “as described”. That is, the vehicle has to be “durable for a reasonable period of time”. And it has to match the seller’s advertising and any statements the seller made at the time of the sale. As well, the seller must have the legal right to sell the vehicle.  

If any of these conditions are not met, the seller has breached the legal warranty. 

For example, if the seller said in their advertisement that the car’s engine had been rebuilt, when in fact it was not, the car wouldn’t match the description. The seller would be in breach of the legal warranty to provide the car as described. 

In considering the condition that the vehicle be “durable for a reasonable period of time”, determining what is a reasonable time will depend on many factors. The older a car is and the more kilometres it has travelled, the more likely it is that something will break down. Also relevant is the price paid for the vehicle, the use of the vehicle, and the cost of repairing any defect. 

The conditions that the vehicle be reasonably durable and “as described” can be waived for used goods. However, this must be done using clear and unambiguous language. 

If the seller misrepresents the vehicle

Whether the car is being sold by a dealer or a seller in a private sale, the seller must not tell you something about the car which isn't true (misrepresent the vehicle). For example, if you asked the seller if they were the only owner of the car and they said yes, when in fact there were two previous owners the seller knew about, they would have misrepresented the vehicle. 

Lastly, the seller in a private sale must tell you if there are any liens against the vehicle, which are legal claims made on the vehicle to make sure a debt is repaid. 

Understanding your options

If the seller has breached the legal warranty or misrepresented the vehicle, you have options:

• You can ask for the seller to pay for any repairs. If the seller is a dealer, you can take the vehicle back to the dealer to have them do the repair. Alternatively, you can have the repair done by a third party and ask the dealer to pay for the repair. (You won’t be able to ask for a repair if it’ll cost more than you paid for the car.)
• You can cancel the agreement, return the vehicle, and ask for your money back. Act immediately if you want to pursue this option. If you wait, it gets more difficult to prove that a fault is the cause of any problem, and and not just normal wear and tear.   
• You can ask for a discount if you still want the vehicle.

You are also entitled to other expenses that “directly and naturally result” from any breach of the legal warranty or the misrepresentation. For example, if you had to pay for the car to be towed after it broke down, this would be an expense that directly and naturally resulted from the breach of the legal warranty. 

What if I think the seller rolled back the odometer?

If an odometer is altered, disconnected or replaced in order to mislead a buyer about the vehicle’s mileage, this is called "odometer fraud". It is a criminal offence. If a car dealer is found guilty of odometer fraud, they can also have their license suspended or cancelled. 

Note that it is legal to replace a damaged odometer. However, the odometer reading needs to be recorded before it is replaced or repaired.  

What if I bought from a seller who I think might be a “curber”?

A significant percentage of ads that look like they are placed by private sellers are actually placed by curbers. A curber is someone who sells cars to try to earn income but has not been licensed as a car dealer. Anyone selling 5 or more vehicles per year is automatically deemed to be a car dealer under BC law. Someone selling fewer than 5 vehicles per year may still require a licence if he or she is selling cars for income. 

These tips on spotting a curber can help you figure out if you bought from a curber.

If you did buy a used car from a curber and have a problem, often your only option is to go to court. 

However there is a way you can help future buyers. You can report the curber to the Vehicle Sales Authority of BC using the form Report an Unregistered Motor Dealer “Curber”. You may make the report anonymously.

What if I have a manufacturer’s warranty or a dealer’s warranty?

When you bought the used vehicle, if you purchased a dealer’s warranty or the vehicle was still covered under the manufacturer’s warranty, you may be able to claim on that to get any problems fixed. In either case, the dealer’s or manufacturer’s warranty doesn’t affect your rights under the "legal warranty". 

What if the seller tried repairing the car and it’s still not fixed?

You don’t have to accept a second repair if something goes wrong and you’d rather not keep the car. You can ask for your money back if the repair hasn’t solved the problem. 

You could also ask for a discount if you still want the car.

I’ve heard about a “lemon law”; what is that?

Canada doesn’t have “lemon laws” for faulty cars the way the United States has. Many US states have laws that give buyers legal options if they buy a vehicle that later turns out to be substantially defective, or a “lemon”. However, the legal warranty explained above under "Understand your legal rights" is Canada’s key law that protects buyers who have problems with defective vehicles they’ve bought.