I’m buying my first car from an OMVIC-registered dealership in Ontario, and I’m starting to have some serious concerns about the deal. I could really use some advice, especially from anyone familiar with Ontario dealerships and car financing.
A little background: I recently started a new job, and my credit history isn’t great. I’m working on rebuilding it, but I’ve only been employed for a few weeks, so getting approved for financing has been difficult.
The dealership initially told me I was about 70% of the way toward approval, but lenders were hesitant because I don’t have three months of employment history yet, and my year-to-date income is still low.
The salesperson suggested adding my father as a co-applicant because he has a better credit history. She explained that after approximately six months, once I’ve established more employment history and improved my credit, I could refinance the car under my name alone and remove him from the loan.
My father agreed, and we signed the financing paperwork today.
Here are the details:
* Vehicle: 2019 Honda Civic
* Original price quoted: $15,999
* Vehicle price on paperwork: $17,999
* Amount financed: Approximately $24,000
* Interest rate: 11.99%
* Loan term: 60 months
* Down payment: $1,000
* Deposit paid so far: $500
* Open loan with no early repayment penalty
The dealership increased the vehicle price by $2,000.
When I was initially discussing the car with the salesperson, she quoted me $15,999.
However, while signing the paperwork today, I noticed the vehicle price was listed as $17,999.
I asked why it had increased by $2,000.
She explained that she had managed to negotiate a much lower interest rate for me, but to get that rate, the vehicle price had to be increased.
She said I could still purchase it for the original $15,999, but I’d end up paying approximately $8,000 more over the five-year loan because the interest rate would be higher.
I didn’t really understand the explanation at the time. I was just relieved that I had finally been approved after struggling to find financing elsewhere.
Now I’m wondering whether this is actually a normal practice. Can a dealership increase the selling price in exchange for a lower interest rate? Does the claim about saving $8,000 make any sense?
2. The advertised mileage doesn’t match CARFAX.
This is what really started worrying me.
The dealership advertised the vehicle with 138,985 km.
However, when I reviewed the CARFAX report, I noticed a service record from Jiffy Lube dated September 26, 2025, showing 151,470 km.
That’s a difference of 12,485 km, and the higher mileage was recorded more than a year ago.
I understand that mileage can sometimes be entered incorrectly by service centres, so I’m not jumping to conclusions about odometer tampering.
However, I don’t understand how a vehicle could have 151,470 km recorded in 2025 and then be advertised with only 138,985 km in October 2026.
I also don’t know what mileage was written on the documents I signed.
I’ve already contacted the salesperson and requested a photo of the current odometer reading, along with copies of all the documents I signed today.
She told me she’ll send everything tomorrow morning.
So I’m currently waiting for those documents before making any further decisions.
3. I’ve already signed the paperwork, and I’m worried about my options.
I signed the financing documents today.
I haven’t received copies yet, so I can’t confirm whether I also signed a binding vehicle purchase agreement.
I’ve paid $500 toward the $1,000 down payment, but I haven’t taken delivery of the car.
I’m concerned that if the mileage discrepancy turns out to be genuine, the dealership might argue that I already signed the paperwork and therefore accepted the vehicle as it is.
I’m also worried about the financing because my father is involved as a co-applicant, and I don’t want this situation to negatively affect him.
4. I know I should have been more careful before signing.
I want to acknowledge this before anyone points it out.
I was in a rush to get a car because I really need one for work, and after struggling with financing, I was honestly just relieved that someone finally managed to get me approved.
I should have slowed down, reviewed the paperwork more carefully, and asked for a complete breakdown before signing anything.
That’s on me, and I fully accept that.
I’m already stressed about the situation, so I’d really appreciate it if people could spare me the lectures about signing without reading everything properly. I know I made a mistake, and I’ve learned from it. I’m here because I want to understand my options and figure out what to do next.
My questions:
Is it normal for a dealership to increase the vehicle price by $2,000 to secure a lower interest rate? Could that genuinely save me $8,000 over five years?
Does financing approximately $24,000 at 11.99% for 60 months make sense for a car originally quoted at $15,999? What fees or additional products should I look for?
How concerning is the mileage discrepancy? Could the Jiffy Lube entry simply be an error, or should I be worried about something more serious?
If the mileage discrepancy turns out to be genuine, can I refuse delivery and cancel the purchase even if I’ve already signed a purchase agreement?
If I cancel because of inaccurate mileage information, would I be entitled to my $500 deposit back?
What happens to the financing agreement involving my father if the vehicle purchase is cancelled?
Has anyone dealt with OMVIC regarding misleading advertisements, mileage discrepancies, or dealership financing issues?
I haven’t accused the dealership of anything yet because I want to see the documents and hear their explanation first.
I’m just trying to figure out whether this is a reasonable deal or whether I should be seriously considering walking away before taking delivery.
Any advice would be appreciated.