When you’re buying a car, you might be asked to put down a deposit, but if you have second thoughts, getting that money back can be tricky. Pat Foran reports.
If a salesperson comes to your home and you sign a contract, there’s a 10-day cooling-off period during which you can change your mind for any reason. But when it comes to car dealerships, things are different.
Once you sign a contract to buy a vehicle and leave a deposit, you’re generally expected to complete the sale.
Sudhir Nagi from Scarborough went car shopping with his wife and decided it was time to switch from their gas-powered vehicle to their first electric car.
Canada EV sales Petro Canada’s electric vehicle charging station is shown on display at the Canadian International Auto Show, in Toronto, Thursday, Feb. 14, 2019. There are more than 15,000 publicly available chargers in 6,800 locations across Canada already, and the federal Liberals are promising to spend $700 million to build at least 50,000 more by the end of 2026. THE CANADIAN PRESS/Christopher Katsarov
“My wife actually signed the paperwork, and we decided we would trade our Honda CRV because we were considering getting an electric vehicle,” said Nagi.
The couple put down a $1,000 deposit on an EV but once they got home, they started having doubts about how many kilometers they would drive each year as well as insurance costs and installing an electric charger.
“We began thinking that it wouldn’t make sense given how much we drive. It won’t really work for us considering the price of the new one (electric vehicle),” said Nagi.
He then called the dealership wanting to cancel the contract but was told that the deal was final and that they would keep his deposit; he had to go through with purchasing the car.
“I was shocked. You don’t get an option once you’ve signed it (the contract),” said Nagi.
AM800-News-EV Charger-1-1.20213513 AM800-News-EV Charger-1
Recently, the Ontario Motor Vehicle Industry Council (OMVIC) launched an online ad campaign warning potential car buyers that there is no cooling-off period in Ontario when buying a vehicle.
OMVIC’s website advises buyers in Ontario that sales are final unless conditions allowing cancellation are written into the contract. It’s crucial for buyers to ensure all agreements are documented properly and understand what happens if a vehicle isn’t available or needs factory ordering.
They should also check that contracts include complete details like finance terms and only sign if they’re sure about going ahead with purchasing a vehicle according to OMVIC.
Nagi didn’t end up buying the EV he signed for but lost his deposit instead. He hopes he can get his $1,000 back.
“Of course I’d like my money back. I’m retired; I can’t afford losing that kind of cash,” said Nagi.
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