Effective 2010, a lot more info must be provided to potential buyers.
The changes in the MVDA will require that dealers provide a lot more disclosure about the motor vehicle that is for sale. Dealers will have to provide complete disclosure with respect to the following:
Reveal any material fact that may influence a consumer to lease or purchase a vehicle. The prior use of the vehicle (was it a taxi/limo, was it a police/emergency vehicle, was it a daily rental or a leased motor vehicle). Whether the vehicle has sustained damage as a result of a water damage or a fire. Reveal whether the vehicle was registered in another Province/Territory or another country. The total cost of repairs for any specific incident that exceeded $ 3000.00, if they know.Reveal that the vehicle had been declared a total loss by an insurance company. Report the negative branding classification of a vehicle (Irreparable, Salvage or Rebuilt). If the motor vehicle is equipped with an anti-lock braking system that is not operational, a statement to that effect; or if any of the motor vehicles airbags are missing or are not operational, a statement to that effect; or if the motor vehicle requires repair in any of the following, a statement to that effect: a) the engine, transmission or power train, b) the subframe or suspension, c) computer equipment, d) the electrical system, e) the fuel operating system, f) the air conditioning.Under the MVDA, the defintion of Dealer has been expanded to include:General Dealer (used and new motor vehicles), Captive Finance Companies, Brokers,Wholesalers, Exporters, Fleet Lessors, includes short-term lessors (daily motor vehicle rental companies).
Most of the guys I know offer CarFax service or the similar one from here in Canada, CarProof. As long as people realize the cost of the service will be added to the price of the car. All the Detroit 3 finance companies ; ie Chrysler Credit, GMAC and Ford CarProof all the cars going thru the Toronto dealer auctions now. For the uneducated it can be a good thing, but I will never depend on a paper report to determine if I buy a car.
One thing I learned from experience, CarFax will not include damage that is not covered by insurance. If a dealer buys a car at auction with damage, he generally will pay a lower price. Then if he has it repaired or repairs it at his place of business, the CarFax report will not show it. Several of the larger used car dealers in the Flint, MI area own their own salvage yards. The reason they do this is to purchase repairable vehicles, usually from dealer only auctions and repair them in house. None of this shows on a CarFax report and they are not required to disclose this to the customer. In Michigan, a salvage dealer cannot resell a vehicle purchased from a salvage auction.
I had a Michigan Dealers License for a number of years and during that time, I had more problems with other dealers than I ever did with the retail customers.
Bought a used SUV from a new car dealer - same brand - this spring. Later when the ABS light came in we took it in for servicing. While they were checking it out they found a llong outstanding recall for front springs. When I asked why this wasn't addressed before I bought the vehicle I got blank stares from both the service guy and the sales mgr. Makes one wonder how thoroughly they go over things. And they say "trust us with your vehicle - we have your best interests at heart " Ted
other than disclosing "the cost of previous repairs over $3000" it sounds like all the current disclosure requirements-sounds like more political buracracy if you ask me-but what do I know.
