Is Canada’s alternative to a vehicle ‘lemon law’ working?

When Doug Ganshorn’s brand new vehicle started consuming oil, he knew he had a serious problem on his hands.

Making matters worse, the B.C. resident says he was getting little help from the car manufacturer.

“The level of frustration is great when you buy a new car and you have these issues and your dealer or the manufacturer won’t resolve them for you,” said Ganshorn.

Since Canada does not have so-called “lemon laws,” Ganshorn turned to the Canadian Motor Vehicle Arbitration Plan (CAMVAP). It’s a not-for-profit organization made up of representatives from the automobile industry, provincial and territorial governments, and consumers.

Under CAMVAP disputes between consumers and vehicle manufacturers are resolved through binding arbitration.

An arbitrator can order the manufacturer to take a number of actions which include repairing the problem at the manufacturer’s expense, buying back your vehicle or reimbursement for previous repairs or for certain out-of-pocket expenses up to $1,000.

An arbitrator can also rule the manufacturer has no liability for your claim.

Ganshorn wanted a buyback and says he spent countless hours preparing his case before it went to an arbitrator, and says preparation is key.

According to the latest award statistics, CAMVAP assessed 169 cases in 2018.

Arbitrators awarded 42 buybacks and 45 repairs, and ruled the manufacturer had no liability in 76 cases.

The non-profit Automobile Protection Association (APA), which helps consumers with car-related issues, says while it does recommend CAMVAP on occasion, it says on a percentage basis, relatively few vehicles are bought back.

“Being awarded a repair counts as a win for CAMVAP, but not always for the consumer who wanted their vehicle taken back but obtained a repair instead,” said APA director George Iny.

“In some cases the CAMVAP offer is not that much higher than the market value of the car because the formula they use depreciates the car quite quickly in some cases,” he added.

Overall, Iny says CAMVAP could be much stronger.

“The industry arbitration program has government representatives on it and they are extraordinarily weak and have little to show in terms of improvement of that program over the years,” said Iny.

“They are in a position already to make small incremental changes and they don’t exercise their authority.”

Doug Ganshorn says he was awarded a buyback amount close to what he paid for the vehicle.

However, $2,700 was deducted for the first year he had driven the car for personal use.

“In the end, it was good for us since it’s the only solution we have in Canada,” said Ganshorn. “You’ve just got to be really prepared and have everything in order and just know what you are talking about at the arbitration hearing. “

CAMVAP is available at no cost to the consumer and can be accessed across Canada. Once the arbitrator rules on a decision, there is no appeal.

For more information on CAMVAP go to:  www.camvap.ca.