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Can You Get Out of a Car Purchase Agreement in Ontario

Buying a car is a major investment, and it’s understandable that you want to ensure you choose the right vehicle for you. However, sometimes life circumstances change, and you need to back out of the purchase agreement you signed. But can you get out of a car purchase agreement in Ontario?

The short answer is yes. Ontario law allows buyers to cancel a vehicle purchase agreement within a specific timeframe and under certain conditions. Here are some of the ways you may be able to exit a car purchase agreement in Ontario.

Cooling-off period

Ontario’s Motor Vehicle Dealers Act (MVDA) provides buyers with a cooling-off period of 90 days. During this time, you can cancel the purchase agreement and return the car to the dealership for a full refund. This only applies if you signed the agreement at the dealership and did not take delivery of the vehicle.

However, it’s essential to note that certain exceptions apply. You cannot cancel the agreement if you bought the vehicle through a private seller, a sale of a used vehicle, or it’s a lease agreement.

Misrepresentation

If the dealership misrepresents the car to you in any way, you can cancel the purchase agreement and return the vehicle. Misrepresentation refers to false statements made by the dealership regarding the car’s condition, history, or features. The misrepresentation must be significant enough as to affect your decision to purchase the car.

For example, if the dealership misled you about the car`s mileage or accident history, you may have a case for misrepresentation. It’s essential to review the agreement carefully and ask questions about any information that seems untrue or misleading.

Breaching the contract

If the dealership breaches the terms of the purchase agreement, you may have grounds for canceling the contract. Breach of contract occurs when one party fails to fulfill their obligations under the agreement. For example, if the dealership fails to deliver the car within the agreed timeframe or delivers a different model than was agreed upon, you may have a case for breach of contract.

It’s important to consult with a lawyer or seek legal advice before canceling any purchase agreement based on breach of contract.

Conclusion

In conclusion, buyers in Ontario have options for getting out of a car purchase agreement. The cooling-off period, misrepresentation, and breach of contract are three common reasons you may be able to cancel your agreement and return the vehicle. However, it’s essential to consult with a lawyer before taking any legal action to ensure you’re making informed decisions.