Lemon laws in Canada

What are lemon laws?

In some jurisdictions, lemon laws exist to protect buyers of defective vehicles. However, Canada does not have lemon laws — except for Quebec. Elsewhere, you won’t usually see the term “lemon” in laws or regulations.

Nevertheless, if you’ve bought a lemon in any province, you do have options.

New cars

Most of the time, mechanical issues with new cars are covered by the manufacturer’s warranty. If a car owner experiences issues getting valid repairs under warranty, they can turn to the Canadian Motor Vehicle Arbitration Program (CAMVAP). This is an automaker-funded program meant to resolve disputes about defective vehicles or warranty issues.

To proceed with a CAMVAP claim, the manufacturer of your defective car has to participate in the program. Fortunately, most of the large automakers are part of CAMVAP, with over 85% of new vehicles represented.¹

Used cars

Buyers of used vehicles may also have some recourse if they’ve got a lemon that doesn’t qualify for CAMVAP.

Licensed car dealerships do have to follow consumer protection laws. These differ by province, but generally, dealers have to disclose certain information about the vehicles they sell. Those vehicles also have to meet reasonable quality standards. If they don’t, a buyer can bring the dispute to a provincial consumer affairs office for guidance. After arbitration, negotiation, or even legal proceedings, this could result in a refund, a buyback of the car, or some other compromise.

However, buying a used vehicle from an individual or an unlicensed dealer is risky — these sellers aren’t bound by consumer protection laws. If you buy a lemon from such a seller, your only recourse would be taking them to court.

Unlicensed dealers or individuals posing as legit operations are known as curbers or curbsiders.² If you discover such a seller, avoid them and report them to your provincial consumer affairs organization.

What to do if you bought a lemon

Given the lack of lemon laws in Canada, there isn’t a clear-cut definition of a lemon. But if you’ve bought (or leased, or financed) a car that needs immediate repairs or multiple repairs for the same issue, you might have a lemon on your hands.

If your car is under warranty, but you’re not happy with how the manufacturer is handling that warranty, you can file a dispute (as we’ll explain below). Warranty repairs will be your first, best option — try to get repairs done under the warranty before you do anything else. At this stage, if the defect potentially affects the vehicle’s safety, you should also report it to Transport Canada in case there are grounds for a recall. Keep in mind that warranties deal with mechanical issues, not damage from accidents or misuse — that type of damage is the realm of car insurance.

If the warranty option fails, your path depends on your car and where you bought it. Here are your options, in order of desirability:

1. If your car qualifies for CAMVAP: start a claim.
2. If your car doesn’t qualify for CAMVAP, but you bought it from a licensed dealership: contact your provincial consumer affairs organization.
3. If you bought your car from an individual or unlicensed dealer: file a small claims court lawsuit against the seller.

Now, a little more detail about each of these options.

If your car qualifies for CAMVAP

To qualify for a CAMVAP claim, you and your defective car must meet all of the following criteria:

1. Your vehicle is a passenger vehicle, no more than 5 model years old.
2. Your dispute is about a defect in the assembly of your car or how the manufacturer is handling your warranty.
3. Your car has less than 160,000 km.
4. The car is primarily for personal use.
5. You’re a resident of Canada and you bought the car from an authorized manufacturer’s dealer within Canada.
6. You’ve already gone through the manufacturer’s dispute resolution process and have given the dealer and manufacturer reasonable time to address your issue.
7. The manufacturer of your car is a CAMVAP participant.

A used car can qualify for CAMVAP if it meets all these requirements.

A CAMVAP claim takes about 70 to 90 days, plus extra time if extra hearings or inspections are required. The cutoff each year is September 30. Unintuitively, this means a 2025 model is eligible only until September 30, 2029 (for example).³ You might also reach a settlement with the manufacturer before the arbitrator reaches a decision on your claim.

The claim process starts with a hearing, in which you and the manufacturer make your cases. There will also be a test drive of the vehicle so everyone can observe your car’s condition. The arbitrator might also request a technical inspection by an independent expert.

Once the process has concluded, the arbitrator can either decide that the manufacturer has no blame for your dispute, or order them to:

1. Repair your car at their expense
2. Buy back your car
3. Reimburse you for repairs you’ve already paid for
4. Reimburse you for other expenses

Importantly, if you follow through with CAMVAP arbitration, you won’t be able to sue if you disagree with the arbitrator’s decision. There is, however, an appeal process.³

If your car doesn’t qualify for CAMVAP, but is from a licensed dealership

If you’ve bought a lemon that doesn’t qualify for CAMVAP, hopefully you bought it from a provincially licensed dealer. If that’s the case, your first step is always to try and resolve the issue directly with the dealer. That could mean having them repair the car at their cost, or even reversing the sale.

If that fails, take your case to the provincial consumer affairs office. Some provinces have offices specifically for vehicle issues.

Note that in many cases, the consumer affairs office can only act on complaints about how the vehicle was sold, such as if the salesperson did not provide information on the vehicle’s history or known issues. Contact the office, but be aware you may have to take steps beyond that.

Here is a quick summary of what to do with a defective used car in the largest provinces:

British Columbia

In BC, the Vehicle Sales Authority of BC (VSA) handles issues with used vehicles purchased from licensed dealers.

Licensed vehicle dealers have to provide certain information to all used car buyers. That includes info about the vehicle’s origin, its repair history, and how it was previously used. If the dealer is aware of any mechanical defects, they must disclose them to a buyer.⁴

The VSA can investigate a claim that meets the following criteria:

The VSA has a self-help tool that will provide your options based on your situation. The timeframe to get a resolution to your complaint depends on the complexity, but it will take at least 30 days.⁵

Alberta

Complaints about licensed dealers (and vehicles purchased from them) go through the Alberta Motor Vehicle Industry Council (AMVIC). AMVIC can help you when you have a dispute with a licensed dealership or mechanic, including if you believe they’ve sold you a lemon.

However, AMVIC has limited authority to force the dealer to take any particular action. You may still need to resolve your dispute through the courts if you can’t reach a solution otherwise.

Licensed dealers must disclose, in writing, certain information about used cars that they sell. That includes:

• The vehicle’s damage and repair history
• How the vehicle was previously used
• If the vehicle was ever registered outside Alberta
• Whether the vehicle was ever declared salvage, non-reparable, or unsafe in any jurisdiction⁶

Licensed dealers also have to provide a Mechanical Fitness Assessment of the vehicle. If your dealer failed to provide any of the required information, proving so would strengthen your claim.

Saskatchewan

The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) handles vehicle-related claims in that province. If you can’t resolve an issue with a licensed dealer, the FCAA can help you.

Saskatchewan imposes a minimum power train warranty on all used-vehicle purchases from licensed dealers, as long as the vehicle has less than 200,000 km on the odometer. This warranty lasts for 30 days or 1,000 km (whichever comes first).

A power train is:

If a power train component fails during this warranty period, the buyer can have it repaired or have the purchase price returned. If they choose repairs, the dealer may require the buyer to pay no more than $200.⁷

Manitoba

The Consumer Protection Office in Manitoba can help if you have a conflict with a licensed dealership about your defective car.

While Manitoba has no lemon law, car dealers are required to disclose certain information about vehicles they sell, including if that vehicle was declared a lemon in anther jurisdiction. Additionally, any product you buy comes with an implied warranty — buyers have the right to expect that things they buy should be fit and free of defects (unless those defects are specifically described).⁸

Dealers in Manitoba have to tell you, among other things:

• If the car is new or used
• Whether the car is under warranty
• The car’s damage and loss history, and the cost of any repair jobs that cost more than $3,000
• If the car has been previously rented on a short-term basis, or used as a taxi or limo
• If the car has been modified from the original model, or rebadged
• Whether the car is new to Manitoba, and, if so, where it came from⁹

If the dealer didn’t disclose the required information, or if you think they may have known about a defect and didn’t tell you, contact the Consumer Protection Office.

Ontario

The Ontario Motor Vehicle Industry Council (OMVIC) is responsible for vehicle-related consumer affairs. They enforce consumers’ rights under the province’s Motor Vehicles Dealers Act.

Car buyers in Ontario have the right to a 90-day contract cancellation if the dealership did not disclose specified information, which may help you if your car is a lemon. When you buy a car, the dealer must provide the following information about the vehicle, and it must be accurate:

• The odometer rating, or a statement as to why this is not available
• The make, model, and year
• If the vehicle has been branded salvage, rebuilt, or irreparable
• Details of the vehicle’s past use (taxi, limo, rental car, emergency vehicle, etc.)

If any of this information wasn’t disclosed or was incorrect, you can return the car and cancel the contract within 90 days after the sale.¹⁰ By law, the seller of a used car must provide a used vehicle information package to the buyer.

Otherwise, you can turn to OMVIC if you’re unable to solve things with the dealer. If you think the dealer misrepresented the vehicle’s condition, you may have strong grounds for a formal complaint. Generally, only issues within the first 30 days of ownership are considered.¹¹

The process for OMVIC complaints is:

1. Initial assessment: OMVIC will assist in resolving the dispute with the dealer.
2. Further review: If you don’t reach a resolution, OMVIC will confirm whether the complaint is within their jurisdiction. If it is, you’ll provide supporting documentation (like emails from the dealer or inspection reports).
3. Formal complaint: OMVIC will either attempt to facilitate a resolution between you and the dealer or undertake a full investigation.
4. Final action: In addition to mediating your complaint, OMVIC may look at various disciplinary actions against the dealer.

Once you reach the formal complaint stage, the expected timeline for a resolution is 45 days.¹¹

Quebec

Quebec is the one province that actually has what you’d call a lemon law (or, more accurately, a garantie anticitron pour les autos).

The Quebec lemon law applies when your car meets the following conditions:

If that sounds like your car, you can apply to have your vehicle declared a “seriously defective automobile.” Once a vehicle has been declared seriously defective, it’s stuck with that label. If the dealer takes it back, they’re obligated to inform any future buyers about the defect.

Once your car is found seriously defective, you can ask the court to cancel your purchase contract (meaning you return the car and receive a refund). You could also ask for a reduction in the price you paid, and even claim additional damages.

Lemon law claims may go through either the Civil Division or Small Claims Court, depending on the amount you’re claiming.

In either case, your first step is to send the dealer a demand letter outlining your grievance. If that fails to get your desired response, you can proceed with a court case.

• Small Claims Court is for disputes of up to $15,000. Here, participants usually represent themselves (no lawyers), though you can still consult with a lawyer outside the courtroom. The procedural rules in this court are much simpler than higher courts. (Learn more about initiating a Small Claims Court case.)
• The Civil Division Court hears cases about disputes involving amounts up to $100,000. This is a more formal setting, with legal representation being allowed (and advised). You don’t need to hire a lawyer, but doing so will help ensure that you get the outcome you want. (Learn more about preparing for a Civil Division case.)

If you bought your car from an individual seller

Unfortunately, there is little you can do if you’ve purchased a lemon from an individual or from an unlicensed dealership. These sellers aren’t beholden to consumer protection law. Unless you can negotiate a solution with the seller, your only option will be legal action.

You could pay for the repairs and sue them to recover the cost, or try to have the court reverse the sale. In any case, you would have to prove that the seller misrepresented the sale in some way. Or, that they were aware of the issues and hid them.

If you find yourself in this situation, it’s best to seek legal advice to ensure you have the best chance of success.

Commonly asked questions

What qualifies a vehicle as a lemon?

A lemon is a vehicle that has a serious manufacturing defect that requires immediate repairs, or multiple repairs for the same issue. “Lemon” may also describe a used car with a hidden defect.

Since Canada doesn’t have any federal lemon laws, there isn’t a precise definition.

Quebec’s lemon laws apply to vehicles with defects that render them unfit for their purpose (driving). Additionally, there must have been at least three unsuccessful repair attempts for the same issue, or 1 to 2 unsuccessful repairs while the vehicle is with the mechanic for more than 30 days, or 12 repairs for any issue. The vehicle must be within 3 years of its original sale and not covered more than 60,000 km since.¹²

How long do you have to report a defective car?

If you’re making a CAMVAP claim, you can report the issues at any time if your car meets the program’s qualifications. Those include having fewer than 160,000 km on the odometer and being from the most recent 5 model years.

Under Quebec’s lemon laws, the car must have covered no more than 60,000 km since its first sale, and no more than 3 years may have passed since that date.

In other provinces, your time limit depends on consumer protection laws. For example, in BC, you have two years from the date you discovered the issue to make a legal claim.¹³

Can you sue a dealership for selling you a lemon?

When you buy a car from a licensed dealership, you could sue them if you discover that the car is defective. However, there are several other options to try first that may have a higher chance of success (and will almost certainly be easier).

Assuming you have already tried and failed to reach a resolution with the dealer, you could initiate a CAMVAP claim if your car is eligible. Otherwise, contact your provincial consumer affairs office; they can provide the best course of action based on your situation and the provincial laws. Many defective vehicle cases can be solved without legal action.

Can you insure a lemon?

You can buy car insurance for a lemon, at least in most cases. The types of issues that make a car a lemon aren’t generally covered by car insurance. When it comes to vehicle damage, insurance is meant to cover damage caused by sudden, accidental events (like collisions, hailstorms, or attempted thefts). Lemons are vehicles that suffer from mechanical issues.

Sources

1. CAMVAP. “Participating Manufacturers.” camvap.ca, www.camvap.ca/Participating-Manufacturers/~english. Accessed 23 Apr. 2025.
2. Community Legal Education Ontario. “Ask Yourself if the Seller is a Curbsider.” stepstojustice.ca, 17 Nov. 2021, stepstojustice.ca/steps/debt-and-consumer-rights/ask-yourself-if-seller-curbsider.
3. CAMVAP. “Before You Apply.” camvap.ca, www.camvap.ca/before-you-apply/~english. Accessed 23 Apr. 2025.
4. Vehicle Sales Authority of British Columbia. “Buying Used.” vsabc.ca, vsabc.ca/consumers/get-information-about-vehicle-purchasing/buying-a-vehicle/buying-used. Accessed 23 Apr. 2025.
5. Vehicle Sales Authority of British Columbia. “Make a Formal Complaint to the VSA.” vsabc.ca, vsabc.ca/consumers/find-help-for-your-issue/make-a-formal-complaint-to-the-vsa. Accessed 23 Apr. 2025.
6. Alberta Motor Vehicle Industry Council. “Buying Used.” amvic.org, www.amvic.org/consumer/buying-a-vehicle/buying-used. Accessed 23 Apr. 2025.
7. Financial and Consumer Affairs Authority. “Minimum Warranties Protect Car Buyers.” saskatchewan.ca, 26 Apr. 2016, www.saskatchewan.ca/government/news-and-media/2016/april/26/minimum-warranties.
8. Consumer Protection Office. “Warranties and Guarantees.” gov.mb.ca, www.gov.mb.ca/cp/cpo/info/warranties.html. Accessed 23 Apr. 2025.
9. Manitoba Used Car Dealers Association. “Consumer Protection.” mucda.mb.ca, www.mucda.mb.ca/consumer-protection-information.html. Accessed 23 Apr. 2025.
10. Government of Ontario. “Buying a New or Used Vehicle: Your Rights.” ontario.ca, 29 Sept. 2014, www.ontario.ca/page/buying-new-or-used-vehicle-your-rights.
11. Ontario Motor Vehicle Industry Council. “Complaints Process.” omvic.ca, www.omvic.ca/buying/complaints/complaints-process. Accessed 23 Apr. 2025.
12. Office de la protection du consommateur. “New Protections for Consumers.” opc.gouv.qc.ca, www.opc.gouv.qc.ca/en/consumer/new-protections/. Accessed 23 Apr. 2025.
13. Vehicle Sales Authority of British Columbia. “My Self-Help.” myselfhelp.vsabc.ca, myselfhelp.vsabc.ca/S2-Q1-Q1A-S06-Q2-S7-Q3-S8. Accessed 23 Apr. 2025.

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