Vehicle contract is legally binding

If you happen to be heading out to a dealership soon, keep in mind that any vehicle contracts you sign are legal and binding. And most importantly, there is no cooling off period in Ontario for motor vehicle sales, so you can't make a return if you happen to change your mind about it. Dealers may cancel the

purchase agreement under certain circumstances, but are entitled to claim something called "liquidated damages." Liquidated damages arise from expenses the dealer might have already incurred when selling the vehicle to you: preparation time, commission, loss of another customer for the vehicle - all of which could bite into part, or all, of your deposit.

If you do want to try to cancel your purchase agreement you can send a letter to the dealer requesting they itemize their liquidated damages. The Ontario Motor Vehicle Industry Council (OMVIC), the provincial regulator of the dealer industry, has posted a sample letter on the Consumer Affairs pages of the OMVIC web site, www.omvic.on.ca, which you can download for use. The council also handles consumer complaints should you run into any problems with your vehicle transaction.

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