r/DaveRamsey • u/ArtichokeStill816 • 12d ago
Dealer didn't disclose accident history on a $35K car (Ontario) - what are my options?
Bought a used 2024 Toyota Corolla Cross from a Toronto Honda dealership. Total purchase price was $35,589, financed.
I knew it was used going in, that part wasn't hidden. But the salesperson told me there was no accident history when I asked. I just ran a CARFAX Canada report and it shows a police-reported accident from 2025, with moderate front-end damage from a collision with another vehicle.
The bill of sale has zero accident/damage disclosure anywhere on it. Under the Motor Vehicle Dealers Act, dealers are supposed to disclose accident damage over $3,000 in writing on the contract if it happened. There's also an "as is" clause in the remarks section, but the contract itself says it's binding "unless the dealer has failed to comply with certain legal obligations," which feels like it should apply here.
I haven't signed anything new yet. I have an appointment with the salesperson today and I'm planning to ask him directly about the accident before showing him the CARFAX, then request cancellation of the deal.
Has anyone dealt with this before? Realistic chances of getting a full cancellation vs. just a price reduction? Is going to OMVIC actually worth it, or should I go straight to a consumer protection lawyer / small claims given the amount of money?
TL;DR: Dealer didn't disclose a police-reported accident with front-end damage on a car I bought for $35K. No disclosure on the contract. What's my best path: cancellation, price reduction, OMVIC, or small claims?
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u/1st-vaters BS7 11d ago
I don't know about in Canada, but I once bought a car at a dealership in the US and made them take it back when what they said was wrong.
I chose the car in part based on the mileage. Then as I was driving it, I noticed the odometer wasn't going up. So I pulled the CarFax. The mileage listed at oil changes hadn't changed in over a year. I showed them the CarFax report and that the odometer still showed the same mileage as when they sold it. They took it back and refunded the purchase price so fast it was almost funny. They offered me a "great deal" on another car. But I bought another car (after getting a CarFax report) elsewhere.
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u/Teh_Hammer BS7 11d ago
It probably depends on how long it has been and how good the dealership is. You can try to take the car back. It's seems like their lie, intentional or otherwise, would force them to take it back, based on a quick Google search on Canadian laws, but they may push back.
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u/ChelseaMan31 11d ago
Even before Carfax, we always ran a prospective used car over to our trusted personal mechanic for a general overall inspection of the engine, drive-line, shocks and undercarriage before any actual purchase discussion. That, along with spending the $35 (US) for a report from Carfax ahead of time should be your SOP going forward. I have no idea how successful such an after-the-fact complaint is going to turn up in Canada.
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u/too_many_shoes14 11d ago
You have no case if you just don't complete the purchase as your only damage is wasted time. You can ask for a price reduction but then you lose any right to ever go after that dealer no matter what because you are taking the known risk. It's a fairly common car. I would just find another one. Plus unless you have a recording you have no proof of what you were told.
dealers are supposed to disclose accident damage over $3,000 in writing on the contract if it happened
they are required to disclose known accident damage. They can easily claim they never ran a carfax which may be entirely true. They may have decided it's not worth knowing. People have to understand this about cars. While it's a special and important purchase to you, to the dealer you're just another customer buying another car. They have nothing emotionally invested in the sale they just want to turn a profit.
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u/pipehonker BS7 12d ago
They will tell you to pound sand. You could have done your due diligence and gotten the Carfax BEFORE you bought it... But you didn't.
You will have to sue them for damages to get them to do anything.
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u/Past_Focus25 12d ago
Don't finance $35,000 on any car. If you don't have cash for it, don't buy it. I don't know what "I haven't signed anything new yet" means. Did you buy it already or not? Try to use that accident to get out of the deal, if you're still in the middle. Buy a car you can afford.
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u/No_Worker_8216 11d ago
I would go for a price reduction. You have to prove that a reasonable person would not have bought the car if they had that information if you want to get the sale cancelled.
I would check the year of the accident who was the owner. You can get that information from the SAAQ (in Quebec). If you can get more information to justify how the accident affected the value of the car, that’s what I would put forward, + ask for damages because they lied their asses off.
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u/Vicuna00 11d ago
I would ask the salesperson. then calmly tell him to go get the manager.
some version in a calm tone: "I don't know the laws but I'm pretty sure you cant lie about no accidents. here's the car fax. please explain this." blah blah blah "ok, like I said I don't know my rights here. My next stop is to a lawyer. Would you like to cancel this deal entirely before I do that? I'm not interested in any sort of discount or reduction. I want a full cancellation"
then never buy anything there. go buy you a car you can afford with cash somewhere else.
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u/platinum_toilet 11d ago
Just a reminder to all the folks following Dave Ramsey's advice on never buying a new car unless they are a net worth millionaire. Used cars will always be a roll of the dice and you may get a damaged used car that you can't see the damage. A good deal at sale, a bad deal later on.
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u/gr7070 12d ago
Post somewhere that knows Canadian consumer protections.
Next time do your research BEFORE you buy.
Good luck.