December 06, 2018

Buying A Vehicle At An Auction? Know What To Expect

The Financial and Consumer Affairs Authority (FCAA) wants to inform consumers of the rules around purchasing vehicles at an auction.  Vehicle dealers who sell vehicles through an auction are required to disclose which dealership the car came from and information about the car’s past use, history and condition.  Private sellers are not required to disclose information.

“In Saskatchewan, vehicle dealers are required to fully disclose, in clear written terms, all material facts known about the history and condition of the vehicle to customers,” FCAA’s Consumer Protection Division Deputy Director Denny Huyghebaert said.  “These same rules apply when a vehicle dealer sells a car through an auction.”

Attending a car auction and interested in buying a vehicle sold by a vehicle dealer?

Make sure the auctioneer lets you know:

  1. Name of dealer selling the vehicle.
  2. Information about a vehicle’s past use, history and condition.
  3. That the vehicle is “roadworthy” or fit to drive unless the vehicle is specifically deemed to be non-roadworthy in the written contract for sale.
  4. If the vehicle is described to be non-roadworthy, the dealer must disclose the particulars of the failures which must be repaired in order for the vehicle to be equipped as required by section 114 of The Traffic Safety Act.

It is the responsibility of the auctioneer to provide the disclosure information received from the dealer to potential buyers to allow them to make informed bidding decisions.  If required disclosures are not made, this could result in the successful bidder having the right to reject the vehicle and receive a full refund.

Additionally, vehicles sold from vehicle dealers are not allowed to be sold “as is” and successful bidders who purchase vehicles “as is” may pursue claims for breaches of the warranty provisions of The Consumer Protection and Business Practices Act.

Contact Consumer Protection Division

If you have questions about car auctions, you can contact FCAA toll free at 1-877-880-5550 or by email at consumerprotection@gov.sk.ca.

Visit http://fcaa.gov.sk.ca/consumers-investors-pension-plan-members/consumers/consumers-of-goods-and-services/attending-auctions for more information.