Buying From a Dealer

BUYING FROM A REGISTERED DEALER

When shopping for a used vehicle in Manitoba

There are many benefits to buying a used vehicle from a registered dealer in Manitoba. Firstly, all vehicle dealers are required to be fully licensed in the province and they are held to a much higher standard than private sellers. They must follow the law in how they advertise, how they negotiate, and how they disclose information about a vehicle, They must also supply buyers with a detailed Certificate of Inspection that conforms to provincial safety standard regulations. You won't have any of these protections if you choose to buy privately.

There are many reasons why buying from a registered dealer is safer for consumers than buying from a private seller.

Services that only registered dealers can offer:

A Dealer's Warranty

After Sale Service

Choice of Vehicles

Recourse

Title Guarantee Against Stolen Vehicles

Financing Options

Extended Warranties

Lien Free Vehicles

Accept trade-ins

When consumers buy a vehicle from a registered dealer, they are protected by numerous pieces of legislation, such as the Consumer Protection Act, the Motor Vehicle Advertising and Information Disclosure Act, and the Business Practices Act, to name a few.

It is the law that dealers must guarantee title against stolen vehicles. Also, dealers must guarantee that there are no liens on the vehicle. They must use Bills-of-Sale that conform to the law, and are required to report all known material facts about the vehicle. And, of course, they must supply buyers with a detailed Certificate of Inspection. See our section on Consumer Protection (linked at the bottom right of this page) to learn more.

In the event of a dispute, consumers can seek help from industry associations, such as the Manitoba UCDA, for impartial mediation... at no cost! If all else fails, the consumer can lodge a complaint with the Consumer Protection Office, the Dealer Inspector or through the courts.

Now, if these protections aren't compelling enough, there are other factors to consider when deciding where to buy a used vehicle in Manitoba.

Licensed dealers can provide warranties and after sale service.
Consumers are offered a selection of vehicles at a dealership, ensuring they get the vehicle that is the best fit for their purposes.
Dealers are able to take a customer's vehicle in on trade. This makes it less of a hassle to find a buyer for the vehicle and reduces the amount of taxes to be paid.
Dealers also have access to financing programs, making it much easier to obtain credit and financing.
You don't run the risk of buying from a curbsider.

These factors make the advantages of buying a vehicle from registered dealers clear. When one adds up all of these positive reasons and considers the hazards of buying privately, the obvious choice is a used vehicle from a registered motor vehicle dealer ... preferably a Manitoba UCDA member.

Reputable car dealers may offer the best deals:

When you buy a used car from a dealer, do you really pay more than you would if you bought it privately? Probably not!!

There are two important considerations, when buying a car - Quality and Price!

Consider the Quality

Buying privately is simply buying "as is". When you purchase privately, you're buying a car exactly as you see it .... any problems the car has, become your problems. A private seller is not required to tell you if there have been issues with the vehicle or if the vehicle requires extensive repairs. And, if this is the case, there's little likelihood they would spend the money to have it fixed before selling it. So, you might be in for an unpleasant surprise when you have the vehicle in for it's required safety inspection before you can register the vehicle.

That doesn't mean that you can't find a good deal when purchasing privately. There certainly is a chance that the car has been well maintained. In such a case, why should you consider a dealer then? What exactly does a dealer offer you, especially when they acquire the vehicle from a private seller and then sell it to you? Well, firstly, they're going to thoroughly inspect and refurbish the vehicle, both mechanically and aesthetically. This could involve anything from addressing stains and rust to providing a complete repaint, particularly for older vehicles.

This process often accounts for the main difference in cost between buying privately and from a dealer. The expenses associated with refurbishing the vehicle, preparing it for sale, and ensuring your satisfaction as the customer. Crucially, when you purchase a vehicle from a dealer, it's their responsibility to ensure it's reasonably fit for your use. Additionally, their costs to refurbish a vehicle will likely be much less than what you would have to pay retail for the same work.

Ultimately, when you purchase from a dealer, you have recourse if issues arise. With a private seller, you have little to no recourse.

What about price?

It's true that dealers expect to make a profit on their sales - it's what keeps them in business, after all. But, how does a private seller determine the price they want for their car? More often than not, they check to see what dealers are charging for a comparable vehicle and try to get as close to that price as possible. Often times, they might even ask for more because, they may claim, they looked after the vehicle with 'Tender Loving Care'. The TLC may be true, or it may not! Only a good mechanical inspection can confirm these claims.

Regardless, private sellers are going to try to get as close to what a dealer would ask for the car as they possibly can. That's just human nature - everyone wants to try to get the best advantage they can. The private seller isn't selling the car to become your best friend. In fact, you'll probably never hear from the person again. You're certainly not likely to buy another car from them, so they really have no incentive to ensure that you're a happy customer.

That's not true of the dealer. He not only wants you as a happy purchaser of that car ... he also wants you to spread the word to your friends and relatives that he's a dealer you're pleased with. Nothing beats a referral from a satisfied customer!

To Sell or Not to Sell...as is!

Many people who try to sell their vehicle privately learn that potential buyers can be very choosy. If the seller gets a number of turn-downs by possible buyers, they learn quickly that selling a vehicle "as is" can be much more difficult than they thought. Buyers look for reliable transportation and an "as is" vehicle can leave buyers with too many unanswered questions.

So, back to the question - is it cheaper buying privately? Taking everything into consideration, it might even be more expensive. A dealer's cost to repair a transmission, replace an air conditioning compressor or repaint a car will be well below what the average person will pay. This allows a dealer to refurbish a vehicle, make a profit and still be competitive with a private seller when it comes to price.

Manitoba UCDA

Quick Contact Form...

MEMBER SUPPORT | CONSUMER QUESTIONS