BUYING A USED VEHICLE PRIVATELY
What you should consider
Buying a vehicle is the second largest purchase in most peoples' lives, next to buying a house. When it comes time to buy, there is one question that usually comes up: "Should I buy a new or a used vehicle?" Both have their advantages and disadvantages. One disadvantage to buying a new vehicle is the depreciation. Depreciation occurs on all vehicles, but most dramatically in the first few years of the vehicle's life.
Manitoba UCDA studies have shown that three to five year old vehicles had already experienced the greatest percentage of their depreciation. In today's harsh economic climate, used vehicles offer consumers the chance to save thousands of dollars. There are many ways to find the "right" used vehicle. By searching local dealers' websites, third-party listing websites, and private postings, you will find literally thousands of vehicles for sale. However, when buying a vehicle privately, the vehicle is purchased "as is". The vehicle may have a Safety Standard Certificate, but this is neither a warranty nor a guarantee that the vehicle will last for any specific period of time. Also, "private sales" might not be quite what they seem. Consumers must beware of whom they buy from.
Curbsiders are everywhere and they are out to prey on innocent victims. Manitoba UCDA study found one individual with over 60 vehicles for sale. He was not a dealer. Although consumers often feel that they are getting a great deal at the time, the disadvantages certainly outweigh the advantages. If the vehicle is found to be stolen, then the buyer is out of luck. The law says that a stolen vehicle returns to the original owner. The buyer loses the whole purchase price, and would have to sue the seller, who by then may or may not be able to be found.
Odometer fraud is another key element in the curbsider being able to offer such a good deal. Some vehicles sold by curbsiders have had their odometers "turned back". This allows the curbsider to sell the vehicle for seemingly less than it is worth.
There is also the risk of liens being registered against the vehicle. Any liens that are found to be registered against the vehicle would then be the responsibility of the new owner ... they would have to either pay out the lien, or face repossession of the vehicle by the lien holder.
The vehicle may have had prior accident damage, and the buyer would have little or no recourse.
Finally, the "good deal" may not be so good. The Provincial sales tax department requires that provincial sales tax be paid on the "Black Book" value, or the actual purchase price, whichever is higher. Keep in mind that in Manitoba, accidents and kilometres are not taken into consideration if the Black Book value is the determining factor in the amount of tax you are paying at registration. This could eat up any perceived savings.
Protect yourself when buying privately.
If you do buy a vehicle from a private seller, take steps to protect yourself.
- Ask to see the seller’s driver’s licence and proof of ownership.
- Check the vehicle’s registration to confirm it is registered in the name of the seller.
- The Vehicle Information Number (VIN) on the registration should match the VIN on the vehicle. The VIN number is usually found at the bottom of the driver’s side of the windshield by the wipers.
- Get a commercially available vehicle history report. On the internet, Google “vehicle history report Canada”. It is important to know that people selling their own cars don’t have to give you the facts on the vehicle’s history. There are costs for these reports - check and compare them.
- Check for liens on the vehicle. Call the Personal Property Registry at 1-844-737-5684 or email tprclient@tprmb.ca. There are costs for the liens check.
- Contact MPI to find out the amount of tax you will be charged when registering the vehicle.
- It is most important to get an inspection from a trusted mechanic, before you buy.