The Ontario government — with a huge assist from that province’s car dealers — has just slammed shut the door (with a throw-away Tweet on a Friday afternoon) on one of the things that vehicle buyers need the most: two days to think about one of the biggest purchases they will ever make. It’s known as a cooling-off period and is common and legislated in many other industries. I asked to speak to Todd McCarthy, the Minister of Public and Business Service Delivery. “Minister McCarthy currently has a very busy legislative schedule and does not have the capacity to participate in an interview at this time.”
Back in April, the provincial Auditor General proposed changes to update the Motor Vehicles Dealer Act (MVDA). Ontario’s sales regulator (OMVIC) oversees the MVDA. “Proposed changes aim to streamline regulations, improve car-buyer protection, and address sector-specific issues,” said OMVIC; italics are mine. There were 14 proposals for change; guess what number one was? The one McCarthy tossed after intense consultation with what appears to be the people who are selling cars, not buying them.
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George Iny is the executive director of the Automobile Protection Association (APA) and an outspoken consumer advocate. He was gobsmacked at what he called the end-run that the Motor Vehicle Retailers of Ontario (MVRO) did as they lobbied the current government to smack down the proposal — that came from Ontario’s own Auditor General. “It was brilliant, it really was. They flooded the Minister [Todd McCarthy] with their members, despite there being incredibly high, sustained support for such a motion from consumers. Car Help Canada, another non-profit entity that assists car-buying consumers, conducted a survey whose results show that of 510 consumers polled, almost 99 per cent were in favour of the cooling-off period.” Remember: this is a cooling-off period after you’ve signed the contract, before you’ve received the vehicle.
Iny acknowledges the biggest fear of a two-day reprieve would be buyers shopping for a better deal. “The cooling-off period is rarely used in Quebec which has had one since approximately 1980. It is a valuable ‘safety valve.’ Dealers are a bit more careful to obtain a signature with a more genuine consumer consent.” In Quebec, there is a 2-day cooling-off period — with limitations — on a new or used car purchase after signing the financing agreement, but only if you did financing through that dealer and if you’ve not taken delivery of the new vehicle. Marie-Pier Duplessis with the Quebec Consumer Protection Office says, “The 2-day period applies to the purchase of a used vehicle financed by instalment sales. In the case of the purchase of a new vehicle also financed by instalment sales, this time limit ceases as soon as the consumer takes possession of the vehicle.”…
What else was proposed to protect consumers?
So far, it’s not all bad news, and we need to focus on not losing the war over a lost battle. Also requested in those 14 proposed changes were some that Iny feels should really be fought for: the end of selling a vehicle “as is”, to shut down the runway to unroadworthy vehicles being sold in the province. Additionally, honest dealers should want to see an end to tied selling (you can buy the car but you have to take the warranty and etching, etc.), that insidious practice that too many consumers faced during the take-it-all-or-leave-it exploitation of pandemic shortages. There are provisions for more education (consumers) and discipline (dealers), as well as provisions to keep the OMVIC board free from conflicts of interest, and expanding the scope of the Motor Vehicle Dealers Compensation Fund. Let’s hope the government prevails in these arenas.