The Motor Vehicle Sales Authority of British Columbia

Friday, 27 Feb 2015

Industry Canada says it is a term used for vehicles that have a "manufacturer's defect that may affect its safety, use or value."  Definitions vary, but vehicles can get labeled as lemons after several failed repair attempts.

 

If my vehicle is a lemon, is there a law that can help?

Some provinces have laws that require dealers to declare if a vehicle is a lemon or has been branded as a lemon in another jurisdiction.  Vehicles imported from the US are more likely to carry this branding, as there are lemon laws in all 50 states. There is no federal lemon law in Canada.

 

What are my options if I have a lemon?

The Canadian Motor Vehicle Arbitration Plan (CAMVAP) is available to settle disputes between consumers and manufacturers, even if not still owned by the original buyer. It covers nearly all vehicles purchased in Canada, but they must have been manufactured within the last four years.  Resolutions vary, ranging from compensation for repairs, re-repair orders to vehicle buy backs. A buyer may also choose to seek legal action to enforce the warranty, but not both.

 

How can I avoid purchasing a lemon in the future?

When buying a used vehicle, get a vehicle history report and a mechanical inspection before purchasing a vehicle.  For new vehicles, research the reliability of models in Consumer Reports or other sources.

 

During a vehicle purchase, you may find yourself dealing with two licensed dealers.  This typically happens when one dealer provides the vehicle and the other provides the financing or a lease.

 

If you have a problem, the dealer who provided the financing or the lease may tell you they do not have responsibility for the sale.  This may not be correct.  If they were acting as an agent for the other dealer or as the dealer completing the transaction, as a licensed dealer they may still have the responsibilities outlined in the Motor Dealer Act and other related regulations.  Here are some tips:

 

  • The dealer to contact with any concerns is the dealer who transferred the vehicle from their name to yours (look on the I.C.B.C. transfer document)
  • This dealer had the responsibility of making the statutory declarations and selling a safe vehicle (look for which dealers name appears as seller on the purchase agreement)
  • These legal obligations cannot be dismissed with a written disclaimer stating they are not responsible for the vehicle
  • Errors made by the first dealer are the responsibility of the final dealer in the transaction, if they took title and transferred the vehicle to you (the first dealer may have some responsibilities depending on the facts)
  • If a consumer complaint arises from the transaction, the complaint will be directed by the VSA to the dealer listed on the sale and transfer documents

Note:  This does not apply to financing companies and others who merely take an assigned interest in the vehicle

Two years ago, numerous Canadian car buyers lost thousands of dollars because they fell victim to believable online scams. These scams consisted of low-priced, high-end vehicles sold on various online advertising platforms.  Consumers were enticed by the great prices and shipping. What they failed to realize, however, was that these vehicles did not exist.

 

While the majority of these scam websites shut down due to press, they have continued to reappear under new names, such as:

  • Double Eagle Motors
  • Husen Original Autos
  • Sprint Luxury Auto
  • Ambient Auto Centre

 

Most recently, the websites in question are Garden City Trucks, Trucks of Kansas and Ken's Kars Florida.  These "dealers" are not licensed or registered as business in their locations. And, further investigations found that their website domains have servers based overseas.

 

While these phantom dealerships will likely shut down, history shows that a new bogus site will eventually take their place.

 

Consumers are urged to do proper and thorough research before purchasing a vehicle, especially online.  Buying from a licensed dealer and getting a vehicle history report is the best way to ensure maximum protection.  BC car buyers are encouraged to check the list of known curbers (unlicensed dealers) and search for licensed dealers and salespeople before buying a vehicle.

As many as twelve million vehicles worldwide have been recalled due to faulty Japanese-made airbags. The Takata airbags can malfunction, sending metal fragments and injuring seat occupants upon deployment. The issue is currently being handled by Transport Canada. Unless there is evidence to suggest a particular B.C. motor dealer has somehow misrepresented these recalls to a consumer, the VSA will not be conducting its own investigation. If a vehicle is believed to be affected, please contact your dealer for more information.

 

Learn more:

 

All vehicles expected to be affected can be viewed here.

 

Consumers are encouraged to check and see if their vehicle is part of a recall. To find out, search either the Canadian Recalls Database or the American Recalls Database.

 

If it is suspected that a safety-related defect is affecting your vehicle, it can be reported to Transport Canada's Defect Investigations and Recalls Division. They will investigate consumer concerns about possible vehicle safety issues needing a recall notice.

 

Buyer beware isn't a rule when buying from a licensed dealer.  But, a judge in Prince George found that this concept applied to a private purchase.  A Vernon man claimed for damages when a recently bought van turned out to be in need of extensive repairs. The vehicle, which was purchased for $20,160 from a Burns Lake couple, ended up needing over $12,000 of extra repairs.

 

The judge claimed that the buyer's financial loss was his own responsibility. And since it was a private sale, the "standards set out in the Sale of Goods Act and the Business Practices and Consumer Protection Act do not apply."  The private sellers did not owe the buyer "a duty of care."  Licensed dealers and salespeople, on the other hand, have to follow the principal of seller beware.  Consumer protection legislation shifts many responsibilities and obligations to the seller.

 

Read the full story here.

 

Odometer tampering has become a common crime recently, with close to 200,000 cars affected in the United States alone.  Not only does odometer fraud cost consumers thousands of dollars, but serious safety issues may also occur with the vehicle.

 

And, it's hitting close to home.  Just across the border, a Calgary man is being charged for scamming more than 50 buyers.  The vehicles were originally purchased at auction houses.  After some small repairs – and an odometer rollback – the vehicles were sold on sites such as Kijiji, Craigslist and AutoTrader.  In one case, one of the vehicles had almost 208,000 kilometers rolled back.  So far, the value of the fraud is estimated to be at $300,000.

 

Sadly, this is happening all over the US, and many used vehicles in BC are imported from the US.  Make sure that you are getting the protections of buying from a licensed dealer and obtain a current vehicle history report. A licensed dealer in BC is required to provide you with the accurate mileage on a vehicle. Even if they unknowingly sell a vehicle with incorrect mileage, they are still responsible for that error.

 

Read about more cases on odometer fraud in the US below:

 

Pair Charged with Sales of 247 Mileage Tampered Cars

Man Altered Odometer and Title of Car

Odometer Fraud Case May Lead to Stiffer Penalties

Odometer Rollback Revealed

Man Accused of Rolling Back Odometers

 

You may not be the only one.  According to Consumer Reports, many manufacturers no longer include a spare tire in the trunk. Consumers may instead find a tire-inflator kit, which includes a small air compressor and a can of sealant, or a run-flat tire (tires that can be driven short distances after a puncture).  Why are manufacturers choosing the replace the spares?  To save on weight and, essentially, gas. Overall, this improves the car's fuel economy.

 

While removing a 45-pound spare tire may seem like a reasonable way to save on gas, Consumer Reports recommends that manufacturers and dealers be upfront about what is included in the vehicle. Consumer Reports also recommends that consumers take their own precautions to ensure they're getting a vehicle that is fully equipped, such as reading the window stickers carefully and asking direct questions at the dealership.

 

Source:  Consumer Reports

 

With the recent rise in manufacturer recalls, the VSA is seeing an increase in recall-related questions. While dealers have an obligation to research and disclose the history and condition of a vehicle, consumers are encouraged to conduct their own research as well.

 

Consumer Best Practices

 

  • · Research the recall history of vehicle models. Resources include the Government of Canada's general recall website for all categories of products, including vehicles. The USA Department of Transport's National Highway and Traffic Safety Authority also launched a VIN specific limited recall look up.
  • · Check the recall history of a specific vehicle with the manufacturer using the Vehicle Identification Number (VIN). A recall may affect only a certain number of vehicles of the same make, model and year.
  • · Ask for proof from the dealer of the status of any recall issues from the seller.

 

Dealership Best Practices

 

  • · Checking online and with the manufacturer using the Vehicle Identification Number (VIN).
  • · Knowing where a recall was made.  A recall in the United States may not be a recall in Canada.
  • · Knowing the full scope of a recall. For example, if the problem occurred in just part of the production run, the recall may apply to only certain vehicles of the same model or year.
  • · Advising consumers of any outstanding or uncorrected recalls.  However, recalls required for a vehicle to meet the minimum requirements of the Motor Vehicle Act must be completed before a vehicle is sold for use as transportation.

 

This fall, Walt returns to print and online publications reminding consumers to buy from licensed dealers for the full protections of the law.  Keep an eye out for Walt's advice column in the Driveway section of many Black Press community newspapers. Walt also makes his television debut with three, 30 second video spots.  Until early December, see if you can spot Walt the Curber in rotation on CHEK TV.  To increase your chances, 15 second versions are also in rotation on the CHECK TV website before current news videos.  Soon, they will also be on many Black Press community newspaper sites.

 

Keep missing them on TV?  Not to worry.  All three videos are available on the VSA website.  Find them here. Or, visit the updated campaign website at www.watchoutforwalt.com.

 

Last year, numerous car buyers saw their pockets emptied as they fell prey to online scams.   Now, consumers are asked to beware of the same kind of scams when buying an RV.  A scam website, operating as rv-wheels.com, was found to be run by scammers out of Nigeria.  They were supposedly based in Missouri, and interested buyers from around the country traveled there to pick up their non-existent motorhomes.  Unfortunately, since the scammers are overseas, there is not much authorities could do. Those who were victimized were not able to get their deposit money back.

 

While the website has shut down due to press, similar off-shore scams are still in action.  Consumers are encouraged to purchase vehicles from licensed dealerships for maximum protection.  Doing further research, such as checking if the business is registered in the state of origin or completing website domain searches, can provide a better piece of mind.  From time to time, consumers can also check the list of known scam websites, which is continuously updated.  And, to search for local licensed dealerships in BC, consumers can use this tool: Search for Dealers and Salespeople.

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