Administration Fees: Often charged by dealers to cover ‘office' costs associated with selling a vehicle. May include fees for plating, licensing, vehicle preparation, etc. Customers can argue administration fees, since they aren't mandatory. Some dealers don't charge them because they're considered unethical. They are occasionally included in the sale price.
Bait & Switch: Occurs when a dealer advertises a product at an attractive price, ‘baiting' customers to come in for a test drive. Sales staff then presents a different, costlier product instead. Effectively, potential shoppers are ‘baited' into visiting a dealer, then ‘switched' to a higher-dollar model. Bait & Switch tactics are illegal and the dealer must have the model advertised available for sale.
Bond or Bonded: A bond ensures that the company and its employees are following governing-body regulations. The bond also assures consumers about the fact that the company has been declared financially sound and stable.
Certified Used Car: This is an inspected car that has been ‘certified' for sale at a dealership, at the dealership's expense. The verification is performed by a mechanic to ensure the used vehicle in question meets a minimum standard of quality, appearance, condition, etc. Certified cars typically carry a supplemental warranty backed by the car manufacturer.
'Cooling-off': This is a specific period of time after the signing of a contract or a purchase during which the purchaser has the right to return goods for a refund, or to cancel a contract without penalty. This period does not apply equally, if at all, in all Provinces.
Contract: A legally-binding agreement between two parties, for instance, the seller and buyer. In some provinces, the vehicle is officially ‘bought' once a contract is entered into, and a deposit is made. Other provinces have a ‘cooling-off' period.
Curbsiders: Curbsiders pose as private individuals selling a vehicle although they are in the business of selling cars. In most cases they sell less than desirable vehicles and they don't disclose accident history, liens, etc. Curbsiders often advertise on sites like Kijiji and claim to be selling the car for someone else. Spot curbsiders by checking whether the ownership is in their name.
Dealer: A business that deals in selling new or used cars-or both.
Department of Transportation: Government agency that handles documents, licenses, license plates, administrative fees, etc. Deals with vehicles and drivers.
Deposit: A sum of money paid to a seller to ‘hold' or ‘secure' a certain vehicle for sale. Some sellers require or ask for a deposit to hold the vehicle in question while the buyer secures complete financing.
Extended Warranty: An ‘extra' warranty available above and beyond the manufacturer's warranty extending coverage on certain systems or components. Often sold at an additional cost through a certified dealership or third party.
Inspection: A mechanical and physical verification performed by the potential buyer prior to the signing of a contract. Also, it may be carried out before a vehicle is ‘certified' for sale at a dealership, at the dealership's expense. Performed by a mechanic to ensure the used vehicle in question meets a minimum standard of quality, appearance, condition, etc.
Latent Defect: A problem or fault that wouldn't likely be discovered in a reasonable inspection of the vehicle in question prior to sale. Also called a ‘material defect'.
Legal Obligations: A requirement to take action in which a penalty for unfulfillment of the obligation could be incurred. Put simply, something the involved party is required to do legally.
Lien: A lien is typically put on a vehicle by a financial institution lending money to a car buyer. The buyer holds the title to the vehicle in question, though the lien isn't removed until the vehicle is paid in full. The lien holder may be able to seize the vehicle if payments aren't made in full-even if the owner sells the vehicle to someone else.
Low-ball: The process of offering the vehicle's seller an amount significantly lower than the asking price-often to ‘check' how much they want to move the model in question. A dealer may ‘low-ball' a customer on trade-in value, too.
Market Value: A value assigned to a good or service using the current market conditions as a guide. In the context of a used car sale, actual value may vary because of condition, mileage, demand, etc.
Ownership Costs: Estimation of the total cost of owning a vehicle for a period of time. Often includes insurance, fuel, maintenance, and so on.
Power of Attorney: An authorization for an agent to act on someone's behalf in private, business or legal matters.
Private Seller: A seller that isn't a new or used dealership, in other words, not a professional. These are often found on sites like Kijiji and Trader.ca. Be aware that private sellers may sometimes be curbsiders in disguise.
Rebuilt/Salvaged: A rebuilt or salvaged title is given to a vehicle that's been damaged and returned to an operational state. This typically happens after a vehicle has been in a serious accident and repaired for resale.
Recall: An effort made by a manufacturer to fix or remedy a problem with a vehicle, discovered after it was produced. Recalls typically apply to vehicles discovered to have a safety-related issue and are carried out free of charge.
Recourse: Refers to a consumer's options in a difficult or legally-implicated situation. In the case of massive wrongdoing, for instance, legal action may be the only recourse.
Salvaged: The title or brand given to a vehicle that has been damaged and consequently repaired and offered for sale.
Small Claims Court: A court that deals with legal claims against parties typically amounting to less than $30,000. Some fees are involved-though this level of court is more appropriate when it comes to claims below the limit.
Trade-in: A vehicle surrendered to a selling dealership for a pre-arranged amount, which is put towards the purchase of a new vehicle.
Unadvertised Fees: Additional charges not advertised in the sale price may include administration fees, licensing fees and the like.
Vehicle History Report: An extra-cost report that researches databases for the used vehicle's VIN number and lists any accidents, the number of former owners, potential salvage or rebuilt title, or whether the vehicle was used commercially.
Vehicle Identification Number (VIN): A coded ‘serial number' imprinted in various locations on a vehicle that identifies its engine, manufacturing location, brand and other information. Used to identify your vehicle to authorities-for instance to an insurance company or to police if your vehicle is stolen.
Warranty: A guarantee made by the manufacturer or a company that sells warranties for certain vehicle parts, systems or components. It stipulates that, if these parts fail or require replacement within a given period of time, they will be replaced at no cost or at a reduced price. Warranty coverage is often split between powertrain, emissions system, and ‘bumper-to-bumper'.
Write-Off/Total Loss: The title or brand given to a vehicle by authorities if the vehicle is damaged to a point where it's not financially viable to return it to its original, functional state.