AMVIC receives a high volume of questions and complaints about finance-only sales. Under current regulations, automotive businesses have the right to choose their accepted methods of payment. Similar to retailers who only take certain credit cards or cash for payment, an automotive business may decide to sell vehicles exclusively through their own in-house financing programs.
Essentially, an automotive business can have their own policy of how they accept payments. It is up to you, the consumer, to decide which option is best for you.
Shop around before signing
As a consumer, you decide where you want to shop and how you want to pay. If you don’t agree with the policies or business practices of an automotive business, find another business that will accept your chosen form of payment. Try not to tie yourself to a specific vehicle. There are other vehicles for sale, and with a little research, you should be able to find one that suits your needs and budget.
Be informed and know your rights
If you choose to proceed with a financed purchase, it is essential that you understand your consumer rights. For instance, any claim by an automotive business that you are required to maintain a loan for a minimum of six months is false. Such statements constitute an unfair practice and are subject to investigation by AMVIC. Under Section 68 of the Consumer Protection Act, you have the right to pay off any non-mortgage loan in full any time after you sign or to make an extra payment with any scheduled payments without penalty.
AMVIC does not approve or endorse finance-only options. Consumers should never be told that these options are “AMVIC endorsed.” Before you sign a contract, make sure you are aware of your consumer rights by visiting amvic.org.