Imo000

I have been buying/ fixing and selling cars as a hobby for 20 years. Usually 2 per year but I neve came across an issue like this.

On Friday I sold a car that had a valid safety certification (issued last Friday) to a buyer. Yesterday he took the car to his mechanic to have him look at it and his mechanic states that, there are several issues that the mechanic that did the safey missed. I always take my cars to Mufflerman so I don't have a conflict of interest when it comes to stuff like this. I have no invested interested in that shop and don't even know the mechanic that did the safety. I like it like that as they always point out what a car need and are always fair with their assesment. I've asked the buyer to bring the car back to Mufflerman so we can have them look at it again and see if the claims are valid. He think that if they are, Muffleman is on the hook for replacing whatever is needed. I have a feeling if it is, I will have to cover the cost of labour but since I never had a problem like this, I'm not sure who is supposed to do what. Technically this is a dispute between his mechanic and Muffleman but I want to be nice and try working things out before it all turns ugly.

I think if some parts need to be changed, I have to do that and not Mufflerman. Anyone ever had an issue like this and if they did, what course of action did they take?

Thanks for all the help but I'm closing this thread.

Speedyellow993

Did you sell it "As Is" or offer a warranty?

Imo000

No warranty. Sold it with a safety, a valid e-test and nothing more. Both were done last Friday when they picked up the car.

PPo

If you personally did the safety and put it in a contract that you would fix any and all issues, then you have a problem.

Otherwise, I would recomend you do not get involved in any way. If the buyer is calling you, direct him to the shop that did the saftey. If the buyer thinks you missrepresented the car, that is another issue and a more involved discussion.

PPo

Buyer really should have had his mechanic look at the car BEFORE the purchase... we all know that!

Imo000

I didn't do the safety, Mufflerman did and it was a private sale. If they would have found something, I would have taken the car home and fix it, then take it back for re inspection to get a pass. I do all my own work and Mufflerman knows this. Therefore they don't ever bother to write up a work estimate as they know I will do all the repairs myself.
In all reality I should have the buyer contact MTO or Mufflerman and work out things that way but I'm trying to be nice and settle this before it goes that far.

What it comes down to is that my mechanic said it passed the safety and the next day his mechanic said it shouldn't have. The items that were noticed are not big but that's not that relevant.

Onami

You need to be very careful about who you involve in this as you are "curbsiding" vehicles and that is illegal in Ontario. You might end up on the hook for a lot more than the cost of a safety!

Imo000

I'm not curbsiding. I beleive two cars a year is well within the allowance. This is the only car this year and last year was only one too, before that, I had two. It's not a business, just a hobby I do on my spare time.

Turbodan

what items is his mechanic saying won't pass? things like brakes and tires have specific tolerances, no grey area, some thins do have grey area like rust. so what is he talking about? maybe it is easier to offer him his money back to avoid any hassles and sell it to someone else.

Imo000

Inner CV boot and worn lower control arm bushings. He already transfered the ownership. The car is in a really nice shape and he wants to keep it.

Turbodan

if the boot is torn he has a point. you can get a cheap zippered one for replacement.
if the bushings are gone he has a point there also. I would deal with it otherwise the shop will give you a hard time next safety and you don't want to cause him problems. offer him money back or offer to spit cost with him.
glws!

Imo000

Thanks for the input. I think we finally came to a conclusion. I'll order the parts, he'll drop off the car at my house and I'll replace them. This way I can see if these parts are in fact bad and were missed during the safety.

Onami

Actually, there is no "allowance" for private sales. You may sell your personal vehicle that is registered in your name, but still must claim any profits on the sale on your income tax return. You may not sell ANY car for a profit (or as a "hobby" wink, wink) in Ontario unless you are a dealer and hold a valid license and you cannot sell a vehicle that is not registered in your name.

FWIW, I think there was an allowable number of cars that one could sell before needing a license, but that was many, many years ago. My buddy in MN is allowed to sell 6 cars/year legally.

Bergamasco

Ok.... well here is a question Say, a guy buys a car for 35k and then sells it a year later for 42k but spends 8k in repairs, upgrades, etc. all with documented receipts of course. Does the government consider that he has made a profit?

Onami

Upgrades are an expense and can be deducted. Gas, storage, maintenance etc. are not considered allowable expenses. There is a CRA memo on this under something like Sale of Personal Property. I sold 3 muscle cars in 2005 that I had owned for a few years and got dinged as capital gains on my tax return. I was told that if I had owned them less than 12 months they would have been considered regular Income, not investment income. Oh, and you can NEVER claim a loss on personal property!