Why Full Disclosure on a Used Car is Important

If you’re in the market for a used car, make sure you know its history. Dealerships are required by law to fully disclose information about its condition and background.

By  Matthew Guy

Posted: June 02, 2022 09:40 AM ET

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Buying a second-hand vehicle can be a great way to save money or to get behind the wheel of a newer car. But it’s important for consumers to know the complete history of a used vehicle prior to its sale.

Fortunately, the Ontario Motor Vehicle Industry Council (OMVIC) is there to help. As industry experts who regulate and enforce motor vehicle sales in the province, they can provide resources and tips on what questions consumers should ask so they can make informed purchasing decisions.

Mandatory disclosures

There are 25 mandatory disclosure requirements by OMVIC-registered dealerships relating to the history of a used car under the Motor Vehicle Dealers Act. This includes if a car has operated as an emergency service vehicle or limousine.

Being informed of car-related issues

All registered OMVIC dealers must disclose if a vehicle requires major repairs. This includes:

• engine, transmission or power train
• subframe or suspension
• computer equipment
• electrical system
• fuel operating system
• air conditioning

Potential buyers must also be informed of any open recalls on the vehicle.

Consumers have the right to know the condition and past use of a car before they sign any contract. All OMVIC-registered dealerships are required to tell you—in a written contract before purchase—about issues or repairs as described in the MVDA mandatory disclosure list.

Shop with confidence

If you’re buying a vehicle, whether it’s new or second-hand, consumers can shop with peace of mind knowing that OMVIC is there to help by ensuring that dealerships are following the rules that are in place. All OMVIC-registered dealers abide by strict regulations that are intended to protect buyers. Visit OMVIC online to access a library of free car buying resources. Call 1-800-943-6002 or email consumers@omvic.on.ca for more information.

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