Throughout the month of May, AMVIC is raising awareness on the financial costs of buying and owning a vehicle.
Last week the topic was about setting a budget. This week, AMVIC is putting the spotlight on liens. A lien is an outstanding debt on a vehicle that has to be paid by whomever legally owns the vehicle. This means doing some research on a used vehicle is very important, so you don’t get stuck with a debt you weren’t expecting.
When buying used, ensure you obtain a Vehicle Information Report (VIR) from Alberta registries to tell you if there is an outstanding lien on the vehicle in Alberta. A consumer can buy a vehicle with a lien on it, but rather than relying on the seller’s documents or promises, take the time to look into it yourself. No one wants a financial surprise later on.
It is best practice for the automotive business selling you the vehicle to pay out any liens, however, it is always worth checking to make sure that has or will happen. AMVIC-licensed businesses must adhere to full disclosure as stated in Section 4(h) of the Consumer Protection Act, “It is an unfair practice that a supplier’s representation that goods have or do not have a particular prior history or usage if that is different from the fact.”
Arm yourself with knowledge of your consumer rights and other useful tips by visiting amvic.org.
Next week, we tackle the risk of negative equity.
Did you miss last week’s Money Month bulletin?