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.
Buying a Vehicle from a Dealer
are the three pillars on which the association has been built.