I signed a sale agreement for a pre-owned car for loan approval. But I do not want to buy the car now. i deposited CAD1000. The dealer says they will forefeit CAD 1000 and will may charge more for their advertsing loss.
Asked 9 months ago in Mississauga, Ontario
OMVIC (Ontario Motor Vehicle Industry Council) is Ontario's Vehicle Sales Regulator. If you signed a contract for sale, it is a legally binding agreement. If the dealer agrees to cancel the contract, they are entitled to retain all or part of the deposit and they may claim "liquidated damages." Liquidated damages are the costs the dealer might've already incurred when selling the vehicle to you such as advertising expenses and loss of profit from the cancellation.
The liquidated damages must be reasonable and provable. If you believe the damages the dealer is seeking are unreasonable, you can contact OMVIC's Complaints Team at 1-800-943-6002 x 5105 or email firstname.lastname@example.org
Yours very truly,
Lawyer & Notary Public
Posted 9 months ago
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