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      09-01-2011, 11:35 AM   #26

Drives: 2012 528xi
Join Date: Feb 2008
Location: Toronto

iTrader: (0)

+1, exactly like I said but I didn't have a cool link.

Originally Posted by aspiring335 View Post

From this link:

Since there is no provision for a "cooling off" period in Ontario's law, if you want to cancel a vehicle purchase agreement the dealer is entitled to claim "liquidated damages" and retain a part or all of your deposit. Liquidated damages arise from the expenses the dealer might have already incurred in when selling the vehicle to you: e.g. advertising, freight and administrative costs, as well as from the loss of profit resulting from this cancellation.

Basically the dealer has to prove in the form of an itemized list the actual liquidated damages incurred by the cancellation. They can't keep the deposit as an arbitrary penalty just because a buyer cancelled an order.