In the world of motor vehicle sales, consumers have the option to purchase a motor vehicle either privately or from an OMVIC-registered dealer. However, consumers sometimes unknowingly purchase from the riskiest option, curbsiders. It’s necessary to understand the differences of each type of seller to help make a well-informed decision, especially with the additional layer of protection provided by the Ontario Motor Vehicle Industry Council (OMVIC) when purchasing from a registered dealer.
Curbsiders are individuals who sell vehicles illegally, meaning they are not registered with OMVIC. These unlicensed and illegal dealers often pose as private sellers (individuals selling a personal vehicle), who try to attract buyers by selling vehicles below market value. But these deals can come with big risks. Curbsiders often hide important details about the vehicle such as accidents, mechanical issues, stolen parts, or salvage titles.
Some vehicles sold by curbsiders are stolen and re-sold by masking the vehicle’s identity, a practice known as re-VINning. Without the oversight of regulatory bodies like OMVIC, buyers are left vulnerable to potential scams and post-purchase headaches. This includes having your vehicle repossessed by police if it is found to be stolen or rebuilt using stolen parts.
Private sellers, on the other hand, are individuals legitimately selling their own personal vehicle. While engaging with a private seller may seem to offer an easier buying experience, its absent of the regulatory safeguards that a registered dealer can provide. Misrepresentations about a vehicle’s condition or history are not uncommon in private sales, leaving buyers exposed to potential disputes and financial losses. Because private sellers are not regulated, there is little to no support for the consumer should something go wrong with the purchase.
If you choose to purchase privately, OMVIC suggests the following tips:
- Ask questions:
- Are there maintenance records?
- How long was the vehicle owned?
- Why are they selling?
- Take a thorough test drive (not just around the block).
- Have the vehicle inspected by trusted mechanic before purchase.
- Request a receipt that includes the seller’s information and actual selling price.
In contrast, registered dealerships are regulated by OMVIC. All registered dealerships and salespersons are licensed and must follow strict laws and industry standards, including complying with the Motor Vehicle Dealers Act (MVDA). Dealerships provide consumers with a level of protection and assurance that private sellers cannot, and curbsiders will not. When buying from a registered dealer, buyers can expect accurate disclosures of a vehicle’s history, comprehensive warranties, and assistance with legal documentation. Registered dealers often offer financing options and certified pre-owned programs, further enhancing buyer confidence and peace of mind.
| Registered dealer | Private seller | Curbsider |
| Sell new and used vehicles and bound by legislation. Possess and display OMVIC registration. | Selling their own personal vehicle. | Often misrepresent themselves and the vehicles they sell. |
| Licensed by OMVIC and bound by the regulations of the MVDA, Code of Ethics and other consumer protection legislation. | Not regulated and do not have to adhere to consumer protection legislation. | Operate illegally, ignore consumer protection legislation. |
| Operate visibly in the community with a permanent lot. | Operate privately, usually from a residence. | Pose as private sellers though some may operate from a small automotive-related business like a body shop or repair shop. |
| Contribute to the compensation fund, a consumer protection fund. | Purchase not protected by OMVIC or the compensation fund. | Purchase not protected by OMVIC or the compensation fund. |
| Bound by legislation to ensure vehicles are accurately represented. | May misrepresent the vehicle, there is no recourse except civil court should something go wrong with the purchase. | May misrepresent the vehicle, there is no recourse except civil court should something go wrong with the purchase. |
| OMVIC can assist should something go wrong with the purchase and seller is adhering to all legislation requirements. | May be difficult to locate following sale or unresponsive to attempts to contact. | Difficult/impossible to track down after the sale. |
| Required to be transparent with their motor vehicle all-in advertising and offer consumers the price indicated in an ad. | Do not have to adhere to all-in pricing. | May mislead in advertising and do not have to adhere to all-in pricing. |
OMVIC offers resources and support to consumers, both pre and post vehicle purchase from a registered OMVIC dealer. You may also have access to the Motor Vehicle Dealers Compensation Fund in certain circumstances but only when you buy from registered dealers. The fund reimburses eligible car buyers who have suffered a proven financial loss related to a vehicle purchase, lease, or consignment transaction from registered dealers only.
Purchasing a vehicle can be a very confusing and overwhelming process. Understanding the nuances of each option is essential. While curbsiders may tempt buyers with enticing offers, the hidden risks outweigh the potential savings. Private sellers lack regulatory oversight, leaving buyers vulnerable to uncertainties. Ultimately, purchasing from a registered dealership regulated by OMVIC provides the highest level of assurance and protection. To find a registered dealer, visit OMVIC’s website.
OMVIC, the regulatory body overseeing vehicle sales in Ontario, plays a pivotal role in safeguarding consumer interests. Through its enforcement of the MVDA, OMVIC ensures that registered dealers adhere to ethical practices and legal obligations.