Easthill Volkswagen
Highway 4 Box 1016, Walkerton, ON N0G 2V0
The Used Car Dealers Association of Ontario!
Buying From A Dealer
We believe that the better alternative to buying privately is to buy from a registered dealer. There are many reasons why buying from a registered dealer is safer for consumers.
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Only Dealers Offer These Services |
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A Dealer's Warranty |
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After Sale Service |
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Choice of Vehicles |
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Recourse |
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Title Guarantee Against Stolen Vehicles |
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Financial Assistance |
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Extended Warranties |
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Lien Free Vehicles |
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Trade-Ins |
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A Dealer's Compensation Fund for Consumers' Protection |
When consumers buy a vehicle from a registered dealer, they are protected by numerous pieces of legislation, such as the Sale of Goods Act, the Consumer Protection Act, and the Business Practices Act, to name a few.
By law, dealers must guarantee title against stolen vehicles. Also, dealers must guarantee that there are no liens on the vehicle. They must use Bills of Sale that conform to the law, and are required to report all known material facts about the vehicle.
In the event of a dispute, consumers can seek help from industry associations, such as the UCDA, for impartial mediation... at no cost! If all else fails, the consumer can lodge a complaint with the Ministry of Consumer and Commercial Relations. Ultimately, the consumer can turn to the Motor Vehicle Dealers Compensation Fund, if they have a proven claim against a motor vehicle dealer arising from the purchase of a vehicle.
Additionally, dealers can provide warranties and after sale service. Consumers are offered a selection of vehicles at a dealership, ensuring they get the vehicle that is fit for their purposes. Dealers are able to take a customer's vehicle in on trade. This makes it less of a hassle to find a buyer for the vehicle and reduces the amount of taxes to be paid.
Dealers also have access to financing programs, making it much easier for the consumer to obtain credit.
All of these factors make the advantages of buying a vehicle from registered dealers clear.
When one adds up all of these positive reasons and considers the hazards of buying privately, the obvious choice is a used vehicle from a registered motor vehicle dealer ... preferably a UCDA member.
Reputable car dealers may offer the best deals
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When you buy a used car from a dealer, do you really pay more than you would if you bought it privately? Probably not!! There are two important considerations, when buying a car or anything else. Quality and Price!
Consider the Quality Buying privately is simply buying "as is". When you purchase privately, you're buying a car exactly as you see it .... any problems the car has become your problems. When someone's about to sell their car, it's usually because they're buying another one. That raises the question .... why? Does it need extensive repairs? Has it been giving the owner frequent problems? If so, there's little likelihood that they'd spend the money to have it fixed ... and then sell it. That doesn't mean that you can't get a good deal when you buy privately. There's certainly a chance that the car has been well maintained. Why consider a dealer then? What does a dealer offer you, if he purchases that same vehicle from the customer and then sells it to you? First of all, he's going to have the vehicle thoroughly inspected and refurbish it both mechanically and, in the case of stains, rust, etc., appearance wise as well. It may need a complete repaint, if it's an older vehicle, or it might just need a quality touch-up. That's usually the largest part of the difference in cost between buying privately and buying from a dealer. The cost of refurbishing the vehicle, preparing it for sale and ensuring that you, the customer, will be satisfied with it. Most importantly, when the dealer sells you the vehicle it's his responsibility to ensure that it's reasonably fit for your use. With a dealer, you have recourse. With a private purchase you have little or none.
What about price? It's true that dealers expect to make a profit on their sale ..... if not, they'd soon go out of business, wouldn't they? But what about the private sale. How does the private seller determine the price they want for their car? More often than not, they check to see what dealers are charging for a comparable vehicle and try to get as close to that price as possible. Often times they might even ask for more because, they may claim, they looked after the vehicle with Tender Loving Care. The TLC may be true or it may not! Only a good mechanical inspection will determine that. Regardless, they're going to try to get as close to what a dealer would ask for the car as they possibly can. That's just human nature. Everyone wants to try to get the best advantage they can.The private seller isn't selling the car to become your best friend. In fact, you'll probably never hear from the person again. You're certainly not likely to buy another car from them, so they really have no incentive to ensure that you're a happy purchaser. That's not true of the dealer. He not only wants you as a happy purchaser of that car ... he also wants you to spread the word to your friends and relatives that he's a dealer that you're pleased with. Nothing beats a referral from a satisfied customer!
To Sell or Not to Sell...as is! Many people who try to sell their vehicle privately soon learn that potential buyers can be very choosy. And why not? If the seller gets a number of turndowns by possible buyers, they may soon learn that selling a car "as is" is not as easy as they thought. Buyers look for reliable transportation and an "as is" car probably isn't! So, back to the question. Is it cheaper buying privately? In the final analysis, it might even be more expensive. A dealer's cost to repair a transmission, replace an air conditioning compressor or repaint a car will be well below what the average person will pay. This allows a dealer to refurbish a vehicle, make a profit and still be competitive with a private seller. When you compare a private sale with a dealer sale ... look at price and quality! |
Buying "Privately"
In local newspapers, automotive magazines, and private postings there are literally thousands of vehicles for sale. However, when buying a vehicle privately, the vehicle is purchased "as is". The vehicle may have a Safety Standard Certificate, but this is neither a warranty nor a guarantee that the vehicle will last for any specific period of time. Also, "private sales" might not be quite what they seem. Consumers must beware of whom they buy from.
Curbsiders are everywhere and they are out to prey on innocent victims. The 1996 UCDA study found one individual with over 60 vehicles for sale. He was not a dealer.
Although consumers often feel that they are getting a great deal at the time, the disadvantages certainly outweigh the advantages.
If the vehicle is found to be stolen, then the buyer is out of luck. The law says that a stolen vehicle returns to the original owner. The buyer loses the whole purchase price, and would have to sue the seller, who by then may or may not be able to be found.
Odometer fraud is another key element in the curbsider being able to offer such a good deal. Some vehicles sold by curbsiders have had their odometers "turned back". This allows the curbsider to sell the vehicle for seemingly more than it is worth.
There is also the risk of liens being registered against the vehicle. Any liens that are found to be registered against the vehicle would then be the responsibility of the new owner ... they would have to either pay out the lien, or face repossession of the vehicle by the lien holder.
The vehicle may have had prior accident damage, and the buyer would have little or no recourse.
Finally, the "good deal" may not be so good. The Ministry of Transportation requires that provincial sales tax be paid on the average wholesale value, or the actual purchase price, whichever is higher. This could eat up any perceived savings.
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