OMVIC Practice Test

Is it permissible for dealers to refuse returns on used vehicles?

1. Yes, but only if the vehicle is defective

2. No, returns are always required by law

3. Yes, if stated in the sale agreement and sold 'as is'

4. No, all sales must be refundable

The correct answer is: Yes, if stated in the sale agreement and sold 'as is'

The correct answer reflects the legal framework around the sale of used vehicles. Dealers can refuse returns on used vehicles if such a policy is clearly stated in the sale agreement and if the vehicle is sold "as is." This means that the buyer is accepting the vehicle in its current condition, which implies that any defects or issues are the responsibility of the buyer after the sale is completed. This practice is often employed by dealers to protect themselves from return requests on vehicles that may have pre-existing issues that the buyer has agreed to accept. It encourages transparency, as the agreement should detail the condition of the vehicle, and it gives the consumer an understanding of what they are purchasing. Other options may imply differing responsibilities; however, the principle of "as is" sales stands firm in the context of used vehicle transactions, allowing dealers to define return policies clearly in their agreements as long as they comply with local laws and regulations.