Saturday, January 23, 2016

Consumer Laws for Used Vehicles in Quebec

Buying a used car in Quebec is a decision that can have an impact on your personal finances. Consumer laws for used vehicles in Quebec are passed to assure consumers that the used vehicles they acquire are free from any kind of issues and trouble. All these laws are intended to protect the buyers from any potential loss due to negligence.

Used Vehicle Information Package

    In order to sell a used vehicle in Quebec, sellers are required to buy a Used Vehicle Information Package from the Ministry of Transportation. This information package gives consumers the necessary details of the used vehicle such as its registration history and any lien filed against it, with the purpose of protecting the buyer. The seller should also provide the details of the bill of sale as well as taxes incurred on that sale. Any transaction is not complete unless the seller shows the package to the potential buyers.

Safety Inspection

    An official safety inspection must be conducted prior to the vehicle's purchase or registration. An authorized mechanic usually does the safety inspection to check if the brakes, steering, gas lines, turn signals, horns and lights are in good condition. If the vehicle passes the safety inspection, the seller will receive a Safety Standards Certificate which is valid for only 36 days. The Safety Standards Certificate is then used by the prospective buyer to register the vehicle.

Clean Emission

    Passing a smoke emission test is also a requirement on some vehicles. A car or truck manufactured before 1988 is not required to undergo an emission test. However, vehicles manufactured on or later than 1988 should be tested for clean emission.

Warranty and Taxes

    According to the Civil Code of Quebec, a seller is not required to declare warranty, except when the used vehicle is defective. A registered merchant, however, is required to offer warranties provided that the vehicle is less than five years old and has traveled lesser than 80,000 kilometers, as shown by the odometer. In Quebec, buyers should pay Quebec Sales Tax either on the actual sales price or the book value based on the Guide Hebdo. Private purchase however is exempted from paying the GST.

Latent and Apparent Defects

    The Civil Code of Quebec covers a warranty against latent defects, which the dealer must declare to the buyer upon purchase. The Civil Code defines latent defects as features that make a property for sale "unfit for the use for which it was intended or which so diminish its usefulness that the buyer would not have bought it or paid so high a price if he had been aware of them." As opposed to latent defect, an apparent defect, on the other hand, is one "that can be perceived by a prudent and diligent buyer without any need of expert assistance."

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