We have assisted clients with a wide range of dealership-related disputes. Some common problems that car buyers encounter include:

• Misrepresentation of General Vehicle Condition or Accident History:

  Dealers falsely describing a vehicle as being in “excellent condition” or “accident-free” when it’s not. This can include lying about past collisions, previous usage, or claiming repairs were done when they were not. Odometer fraud (rolling back the mileage) is an especially egregious form of misrepresentation. There are a total of 22 disclosures that dealers and salespeople must make, when applicable.

• Undisclosed Mechanical Defects or Frame Damage:​

  Selling a car that has significant mechanical issues or structural/frame damage without disclosing it upfront. For example, perhaps the vehicle had serious engine or transmission problems, or had been in a collision that compromised its frame, but the dealer did not disclose this to you at the time of sale. Under Ontario law, these kinds of issues must be disclosed (e.g. any structural damage or repairs, and any collision repair over $3,000) . Concealing such defects is both an unfair practice and a violation of the MVDA.

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• Warranty Disputes and “Lemon” Vehicles:

  Situations where a new car has recurring mechanical, structural or cosmetic defects but the dealer or manufacturer fails to honor the warranty, or where a used car that was sold as “certified” or under a dealer warranty ends up having repeated problems. Ontario doesn’t have a specific “lemon law” statute, but if a car has repeated, unresolved defects that impair its use, you have recourse. The manufacturer’s warranty should cover repairs, and if they cannot fix the car after a reasonable number of attempts, you may be entitled to escalation (like a replacement or buy-back through arbitration).

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• Improper "As-Is" Sale

  A vehicle being sold “as-is” does not automatically deprive a purchaser of recourse where defects, prior accidents, damage, or other material facts were not properly disclosed. Dealers remain under a duty to disclose accident history, damage, and material defects, and any “as-is” clause must be clearly and specifically worded so the purchaser understands the legal effect of the sale. Further, a dealer should not provide a safety standards certificate in connection with an “as-is” sale, as doing so creates competing representations that the vehicle is both unfit and fit for use on the road.​​

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• Delivery Issues

  This covers tactics such as taking a deposit for a vehicle and then failing to deliver it in the promised timeframe (or at all). Dealers must deliver the vehicle as contracted; if they cannot, you’re entitled to your deposit back at minimum, and possibly damages if you incurred costs (for example, if you sold your old car expecting the new one). We also handle issues where the vehicle delivered is not as per the contract (different trim, missing options that were promised, etc.), which is a breach of contract.

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• Financing Fraud or Unfair Lending Practices

  In some cases, the dealership might secure financing for the buyer but misrepresent the financing terms – e.g. inflating the interest rate above what the buyer actually qualified for and pocketing the difference, or adding products like extended warranties or insurance into the loan without proper disclosure. Undisclosed markups on financing or falsified loan applications (such as misstating your income to get approval, putting the buyer at risk) are serious issues.

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• Improper or Fraudulent Safety Certificates

  In Ontario, a vehicle must pass a safety inspection (Safety Standards Certificate, SSC) to be registered for road use. An SSC is not a warranty of the car’s overall condition – it simply certifies that on the inspection date the vehicle met the minimum safety requirements (brakes, tires, lights, etc.). However, we’ve seen cases where a dealer provided a “safety certificate” for a car that clearly had safety-related defects (worn brakes, bald tires, structural issues) that should have caused it to fail.

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• Deposit Not Refunded Despite No Signed Bill of Sale

  You provide a deposit to hold a car but never sign a formal agreement or bill of sale. The dealer refuses to return it. We can help you retain this deposit.

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​This is not an exhaustive list, but it covers the most frequent issues. If you suspect that any of the above has happened to you, you likely have legal options to reverse the deal or get compensation. We encourage you to reach out for advice in these situations.

Ontario provides strong legal protections for car buyers through several key laws and regulations. These laws set standards that dealers must follow and give consumers remedies if things go wrong. The most important legislation includes the Consumer Protection Act, the Sale of Goods Act, and the Motor Vehicle Dealers Act. Below, we break down each and explain how they safeguard your rights.

Consumer Protection Act, 2002 (CPA)

• The Consumer Protection Act, 2002 prohibits unfair or deceptive practices by sellers, including false or misleading representations about a product or service. In the context of auto sales, this means a dealer cannot lie or mislead you about a vehicle’s condition, history, or any other important fact.

• For example, if a dealer knowingly misrepresents the car’s accident history or makes false promises about warranty coverage, that can be considered an “unfair practice” under the CPA. Importantly, the CPA gives you powerful remedies if a dealership’s misrepresentation or misconduct induced you to buy the car. If an unfair practice occurred, you have the right to cancel (rescind) the contract within one year of the purchase and get your money back.

• This remedy can apply in cases of serious deception – for instance, if the dealer rolled back the odometer or concealed major defects. The Act also allows consumers to sue for damages or seek a refund for losses caused by the unfair practice.

• Disclosure of Important Facts: Ontario’s consumer protection regime also emphasizes disclosure. Dealers are expected to disclose major information that would affect your purchase decision. Failing to mention a material fact (like a serious prior accident, previous taxi use, or a rolled-back odometer) can be deemed a false/misleading representation.

In practice, this means if a dealer hid something significant about the car, you may have grounds to cancel the sale or claim compensation under the CPA’s unfair practice provisions.

Sale of Goods Act, 1990 (SGA)

The Sale of Goods Act (SGA) applies to the sale of both new and used cars in Ontario. This law implies certain warranties/conditions into every sale, even if the dealer doesn’t explicitly mention them. In particular, it ensures that:

• Goods must match their description.

• Fitness for Purpose.

• Merchantable Quality.

• Quiet Possession (Title Free of Liens).

These protections under the SGA do not need to be written in the contract/bill of sale – they are automatically part of the deal unless clearly waived. Notably, a dealer cannot easily dodge these obligations by selling a car “as is.” Under Ontario law (after changes to the MVDA), even if a car is sold “as is” (without a Safety Standards Certificate or warranty), the vehicle should still be capable of providing basic transportation unless extensive disclaimers were made.

Simply writing "as is" does not fully protect the dealer from liability if they failed to disclose major problems.

The bottom line is that the Sale of Goods Act gives consumers an inherent “statutory warranty.” If your car is defective despite being promised as merchantable quality, you may have a claim for breach of these implied conditions.

Motor Vehicle Dealers Act, 2002 (MVDA)

The Motor Vehicle Dealers Act, 2002 (MVDA) is a provincial law specifically regulating dealership conduct in Ontario. All car dealers must be registered with the Ontario Motor Vehicle Industry Council (OMVIC) to legally operate. OMVIC is the regulator tasked with administering and enforcing the MVDA and its regulations. The MVDA and OMVIC rules impose strict obligations of honesty and disclosure on dealers, as well as advertising standards and a code of ethics.

Some key aspects of the MVDA include:​

• Mandatory Disclosures; Ontario dealers must tell you about any big issues in the car’s past that a reasonable buyer would want to know. These disclosures must be given to you in writing on the contract (often also in the Used Vehicle Information Package or Carfax report).​

• The MVDA gives you the right to cancel certain purchases within 90 days of the sale. We can help assess whether you have access to this cancellation right.

If you’ve been misled or wronged by a dealership and informal efforts to resolve the issue haven’t worked, legal action may be warranted. We guide our clients through this process every step of the way. Here’s how a typical case might proceed:

1. Gather Documentation: The first step is to collect all relevant evidence. This includes the purchase contract/bill of sale, any advertisements or online listings for the vehicle, window stickers or brochures, emails or texts with the salesperson, finance agreements, warranty booklets, inspection reports (safety certificate, mechanic’s assessments), and receipts/work-orders for any repairs or costs you’ve incurred.

2. Consultation (Case Assessment): We offer an initial consultation to review your situation. During this meeting (or call), we listen to your story and look at the documents you’ve gathered. We will give you an honest assessment of your legal position and outline the possible remedies.

3. Demand Letter & Negotiation: In many cases, the next step is for us to send a formal demand letter to the dealership (or manufacturer, if appropriate). This letter will set out your complaints, reference the legal violations, and clearly state what outcome we expect – such as a full refund, repairs at the dealer’s expense, cancellation of a finance contract, etc. We give the dealer a short but reasonable deadline to respond.

4. File a Complaint with OMVIC: While negotiation is ongoing (or if the dealer is uncooperative), you also have the option to file a complaint with regulatory bodies.

5. Small Claims Court (for claims up to $50,000): If the dealer won’t resolve the matter amicably, the next step is usually to commence legal action. For most car purchase disputes, Small Claims Court is the appropriate venue, since as of now it handles claims up to $50,000 in value. (Note: the Small Claims limit is $50,000 as of 2026; if your claim’s value is higher, see the next step.)

6. Superior Court (for larger or complex claims): If your claim exceeds the small claims limit (for example, you bought a high-end vehicle and seek a $50,000+ refund/buy-back), or if the case is particularly complex (involving novel legal issues or requiring extensive evidence), we would file in the Ontario Superior Court of Justice. The Superior Court can handle any size of claim, but the trade-off is the procedure is more formal and can take longer. In a Superior Court action, there are additional steps like examinations for discovery and more detailed legal submissions.

7. Enforcement of Judgment & Compensation Fund: Winning a judgment is only part of the journey – you also need to collect on it. We assist clients with the enforcement phase too. If the court orders the dealership to pay you money, we can take legal steps to ensure you get paid (such as garnishing the dealer’s bank accounts or placing a lien on their property, if necessary). Most reputable dealerships will pay a judgment rather than face these measures, especially since dealers must maintain good standing with OMVIC. However, if the dealership refuses to pay or has gone out of business, Ontario’s Motor Vehicle Dealers Compensation Fund is there as a backstop. We can help you apply to the Compensation Fund for up to $45,000 of your losses if the dealer won’t pay but you have a valid judgment or order against them.

CAMVAP is a useful arbitration program available for eligible vehicles from participating manufacturers. If your vehicle qualifies, we can help prepare your case and represent you throughout the arbitration process. Alternatively, you may choose to pursue your claim through the court system, and we are equipped to assist you with that route as well. Participating manufacturers are as follows:

Ford Motor Company of Canada, Limited, General Motors of Canada Company, Honda Canada Inc., Hyundai Auto Canada Corp., Jaguar Land Rover Canada ULC, KIA Canada Inc., Lucid Motors Canada ULC, Mazda Canada Inc., Nissan Canada Inc., Porsche Cars North America Inc., Subaru Canada Inc., Toyota Canada Inc., Volkswagen Group Canada Inc., Volvo Car Canada Limited.

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Disputes about a current defect in vehicle assembly or vehicle materials or the application or administration of the manufacturer's new vehicle warranty as it applies to your vehicle.​

CAMVAP covers most domestic and imported passenger cars, light trucks, sport utility vehicles, vans and multi-purpose passenger vehicles purchased or leased in Canada, as long as the vehicle is the current model or one of four previous model years.

CAMVAP is available to the current model or 4 past model years of passenger vehicles (cars, light duty trucks, cans, sport utility vehicles, multi-purpose passenger vehicles) that weigh no more than 4,536 kg (10,000 lbs) gross vehicle weight (GVW).

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2021: September 30, 2025

2022: September 30, 2026

2023: September 30, 2027

2024: September 30, 2028

2025: September 30, 2029

2026: September 30, 2030

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Remedies Offered by CAMVAP

CAMVAP Arbitrators can order the manufacturer to:

1. Repair the problem with your vehicle at the manufacturer’s expense;

2. Buy your vehicle back;

3. Reimburse you for repairs that you have paid for already;

4. Reimburse you for out-of-pocket expenses.

A crucial element in many of our auto dispute cases is expert evidence. Courts and arbitrators often give significant weight to the testimony or reports of qualified experts, especially on technical matters. We frequently work with litigation-experienced forensic mechanics and engineers, automotive experts, or appraisers to strengthen our clients’ cases. Here’s how expert evidence can make a difference:

1. Diagnosing Defects

2. Deciphering Causation and Timing

3. Diminished Value Assessments