“Lemon law” will force used car dealers to label previously damaged cars

HALIFAX, NS – Used car buyers in Nova Scotia will be better able to find out a vehicle’s history under changes introduced by the province.

Under proposed amendments to the Motor Vehicle Act, used car dealers will have to tell buyers whether a car has been significantly damaged in Canada or the United States.

Ramona Jennex, minister of Service Nova Scotia, says the province will be the first in Canada where used car dealers will have to identify a car as a "lemon" by a label on the windshield.

Licensed dealers who fail to disclose information about damage, or whether a car is considered unrepairable, will face a $1,000 fine.

Dealers who also fail to provide a valid agreement of purchase and sale, which outlines their obligations to the buyer, will face a $500 fine.

Paul Arsenault, the province’s registrar of motor vehicles, says the legislative changes set out clear rules for dealers about how they must deal with consumers.