The good weather’s back, the snowmobiles are put away, and there’s this renewed desire to hit the roads and trails in and around the village at the wheel of a car that’s a little newer, or a little more comfortable, or simply the colour of your dreams. What about the rules that apply when you are looking to purchase a car from a private individual?
What you should know when you are buying a used car from an individual.
It may be worthwhile to carry out some checks and validations before proceeding with the purchase of a used car from a private individual. This article attempts to provide you with some tools to consider in your approach. Please note that these tools focus only on the transaction between you and the seller, and do not touch on your obligations as a buyer, whether in terms of transporting the vehicle to your community, or contracting insurance and/or registration and/or other elements of the transfer of ownership.
1) Is the vehicle free of charge?
It is crucial to make sure that there are no debts or other charges on the used car you are considering buying. This considering that charges or debts attached to the vehicle will survive the sale, that is, the person who is owed money or has registered a charge will have the right to take back your vehicle even after you bought it and paid for it in full! To make sure that there are no registered rights on the vehicle, check the Register of personal and moveable real rights, or RDPRM (Registre des droits personnels et réels mobiliers). The RDPRM is a computerized list that anyone can access to check if there are debts or other charges on a property. You can use their online services, or contact them by email or, if necessary, by telephone. For consulting the register via the Internet, the fee is $3 for a vehicle and $9 for a name. The corresponding fees are $6 and $12 for a phone consultation. More information as well as the detailed list of fees is available at www.rdprm.gouv.qc.ca.
2) Is the sale price fair and reasonable?
You may wish to have appraised the value of the used vehicle you have in your sights. One easy way to do so is to consult the list price made available by companies such as CAA-Quebec, as a point of reference and comparison tool. It may help you assessing the value of this used vehicle – and be it a car motorcycle, truck, ATV, snowmobile or other – which however needs to be up to 10 years old. You can ask for a list price online at: https://www.caaquebec. com/en/on-the-road/services/appraising-the-value-of-a-used-vehicle/
3) Is the vehicle up and running?
Aside from a sound mechanical inspection, it may be advisable to check the history of a used vehicle to see if it was ever damaged or involved in a reported car accident. You can CarProof the vehicle, by using the CARFAX Canada Vehicle History Report for example (https://www.carfax.ca/). It could provide you with the vehicle’s accident history; frame or structural damage; damage location; weather damage; and repair estimates and costs. These in turn can prove to be very useful in your negotiations, or even your decision to go ahead, or not, with the purchase.
4) And what if I am discovering defects after the fact?
The Civil Code provides a warranty against hidden defects. However, this warranty may be excluded from your coverage if your sale and purchasing contract specifies it. This will usually be described at your contract or agreement under the terms “purchased as is” or “at your own risks.” This will void the recourses you may have been able to take in case of hidden defects discovery.
A hidden defect is a problem that, had you been aware of it before making the purchase, would have led you:
• to not purchase the vehicle;
• or to pay a lower price.
A hidden defect is present before the sale but cannot be detected by a consumer who carefully examines the goods. This is the case, for example, when:
• you were not informed that the vehicle was damaged, which prevents it from operating properly;
• you were deceived about the vehicle’s mileage.
If you discover a hidden defect, you can request compensation or, in certain cases, the cancellation of the sale. The vehicle vendor could be held liable and be required to compensate you.
If you believe you have discovered a hidden defect and did not purchase the vehicle at your own risk, you must denounce the defect in writing to the vendor. If you forego this step, your rights might be lost. The Office de la protection du consommateur advises you to write to the vendor as soon as you discover signs of a hidden defect. You can do so before knowing all the details and starting the negotiation process with the vendor. This denunciation can be part of a formal notice, but this is not a requirement. You might need to write to the vendor more than once. For example, a first letter can denounce the defect and a second letter could give the vendor formal notice.
If this process does not provide results, you can resort to the courts, through a small claims court application, or by taking your case to the civil division of the Court of Quebec. The Small Claims Division of the Court of Quebec hears cases in which the amounts claimed do not exceed $15,000. When you appear before the small claims court, you must represent yourself without the help of a lawyer. To claim an amount higher than $15,000, the Civil Division of the Court of Quebec will have to be used.
5) Are there other warranties that apply?
Warranties attached to the vehicle that are still valid can be transferred. As such, your car might still be covered by the manufacturer or merchant warranties. In legal terms, this is called a “conventional warranty.” This warranty may be provided by the vehicle manufacturer, and as such is often referred to as the “manufacturer’s warranty.” Vehicles purchased or leased from a merchant are often covered by this type of warranty provided free of charge. The length of this warranty varies from one manufacturer or merchant to another. The details regarding items covered and the terms and conditions are most often described in a warranty guide provided to you at the time of the vehicle purchase. Take some time to read it carefully.
To transfer the warranties to your name, contact a dealer. Inform the dealer that you are the vehicle’s new owner. Also remember to:
• request the owner’s manual if it was not given to you;
• check whether there are recalls or extended warranties on the vehicle.
An extended warranty may still be valid on the vehicle, and hence can be transferred to you. This extended warranty is offered as an additional warranty coverage at time of purchase from the merchant. In the event of a vehicle defect, the additional coverage provides for its repair or replacement, or a refund. The duration and coverage are defined in a contract. It should contain information about what is included/excluded from the coverage; and the terms for having it honoured (ex: for four years or 100,000 km after the basic three-year warranty or 60,000km; etc.)
In all cases, you do not need to prove that the car was properly maintained by its former owner to benefit from these warranties.
It remains for us to wish you a – now well-equipped – shopping experience, whether it results in the purchase of a used car that meets all your needs, or whether the car of your dreams remains… in your dreams!
Legal Tips aim at explaining to the Nunavik Inuit clientele in a general and broad manner some elements of the law applicable in Quebec and are not legal opinions nor legal advice which can be obtained by contacting private practitioners (lawyer or notary).
