AMVIC has recently noticed a substantial increase in consumer questions and complaints regarding finance-only purchase options. Some automotive businesses choose to only sell vehicles through their own in-house financing. Automotive businesses can decide how they accept payment, just as some retailers will not accept certain credit cards and some won’t accept cash.
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 or your household.
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, know your rights.
If you decide to go ahead with the deal and take on a loan, make sure that you know your rights. For example, if an automotive business tells you that you must keep the loan for at least six months, this is not true and would represent an unfair practice that AMVIC could investigate.
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.