Bought a Defective Vehicle in Canada? Know Your Consumer Rights

If you have purchased a new or used vehicle that turns out to be defective, you may feel stuck. While Canada does not have a federal “lemon law” like some American states do, Canadian consumers are still protected by a combination of provincial consumer protection legislation, warranty law, and an industry arbitration program.

Provincial Consumer Protection Laws

Each province has consumer protection legislation that protects vehicle buyers. In Ontario, the Consumer Protection Act requires that goods (including vehicles) be of merchantable quality and fit for their intended purpose. Similar legislation exists in British Columbia (Sale of Goods Act), Alberta (Consumer Protection Act), and other provinces. If a vehicle has a defect that makes it unfit for its purpose, you may have a right to a remedy.

CAMVAP: The Canadian Motor Vehicle Arbitration Plan

CAMVAP is a free, Canada-wide arbitration program available to owners of new vehicles that are still within the manufacturer's warranty period. If you have a dispute with the manufacturer about a defect or warranty issue, CAMVAP provides an independent arbitrator who can order the manufacturer to repurchase the vehicle, replace it, or make repairs. The process is faster and less costly than going to court.

Implied Warranties

Under provincial sale of goods legislation, every vehicle sold in Canada comes with implied warranties—the vehicle must be fit for its intended purpose, match any description given by the seller, and be of merchantable quality. These implied warranties apply even if the seller does not offer an explicit written warranty.

Steps to Take if You Have a Defective Vehicle

Document every defect and repair attempt with dates, descriptions, and copies of repair orders. Notify the dealer and manufacturer in writing about the ongoing issues. Give the dealer a reasonable opportunity to repair the defect. If the problem persists, file a complaint with your provincial consumer protection office. Consider applying to CAMVAP if the vehicle is under warranty, or consult a lawyer about your legal options.

Know Your Rights

A Personal Legal Service Plan gives you access to lawyers who can help you understand your provincial consumer protection rights, navigate the CAMVAP process, and fight for the compensation you deserve when you are stuck with a defective vehicle.