A dissatisfied Ottawa car buyer is warning about a lack of protection for people who purchase vehicles in Ontario, after losing thousands of dollars and receiving little help from the provincial regulator.

Henry Patterson has learned firsthand how difficult it is for car buyers to recoup their losses if a dealer isn't willing.

In November, Patterson bought a used 2001 Toyota 4 Runner from Metro Chrysler Dodge Jeep Ram for $3,704.05, as a final sale.

He got his mechanic to look the SUV over before he bought it, and while he knew it needed some work, the paperwork provided by the dealer showed no issues with the subframe or suspension.

But when his mechanic hoisted up the SUV after the purchase, they discovered it wasn't salvageable.

"[The] underneath is completely rotted and rusted," he said. "A polished turd."

No help available, Patterson says

Two mechanics who spoke to CBC News said there was no way the vehicle could be certified for safety, as the frame was too far gone.

In response to CBC's questions, Metro Chrysler wrote that Patterson had the opportunity to inspect the car before he bought it. He also signed an "as-is" agreement, which clarified the vehicle may not be fit for the roads and may require substantial repairs at the buyer's expense.

The dealer refused to take the car back and refund his money, so Patterson turned to the Ontario Motor Vehicle Industry Council (OMVIC), the province's regulator for vehicle sales.

Mechanics told Patterson the frame of his SUV was so rusted, it was beyond repair. (Jean Delisle/ CBC)

Failure to disclose certain issues — for instance, if the car was in a wreck — can trigger a cancellation of the sale. Patterson said he expected OMVIC could order the dealership to reimburse him, since they didn't disclose a major problem with his SUV.

But the organization was only able to issue a letter he could take to small claims court, informing the judge that Patterson had already tried to resolve the issue through OMVIC.

Unfortunately, the cost of going to court, Patterson said, is about the same as what he paid for the car.

"They can't do anything for people," Patterson said. "They can hold your hand and tell you that the ouchie is going to go away, but it doesn't."

OMVIC can't force compensation

While OMVIC does try to mediate between sellers and buyers when there's a complaint, the council lacks the power to "compel restitution," said communications director Terry O'Keefe.

"We don't have the authority to order the dealer to pay it," O'Keefe said. "We can't order the dealer to conduct repairs, and we can't order a dealer to take a vehicle back."

We can't go into a dealer's bank account and take money out, even if we think the consumer is entitled to restitution. - Terry O'Keefe, OMVIC

Last year OMVIC mediated 1,149 complaints and had success in about 50 per cent of cases, O'Keefe said. Those negotiations resulted in about $1.7 million in restitutions, not including repairs dealers agreed to make.

In cases where the customer doesn't get satisfaction, OMVIC still investigates poor behaviour and illegal activity and can impose penalties for breaking the rules — by issuing fines, revoking licences and even ordering jail time.

But that doesn't help customers who lost money.

"We can't go into a dealer's bank account and take money out, even if we think the consumer is entitled to restitution," O'Keefe said.

Only recourse is court

That means that for some people, the only option is to go to court.

Paralegal Keith Shaw has had several cases of car buyers trying to recoup their losses in small claims court over the last few years, and called it a less-than-ideal solution.

"It's costly, it's very stressful, and usually people who've purchased a car like this need that car to get to work," Shaw said.

"It's extremely tough on them."

Paralegal Keith Shaw says the system is failing car buyers who feel wronged because they often have no recourse but to go to court. (CBC)

Shaw said both customers and dealers — who are already paying into OMVIC — would benefit if disputes could be handled out of court.

"It would be so much better if the [council] had a little bit more punch in their glove, a little bit more bite."

Consider a pre-purchase inspection

It's up to the government to give OMVIC the power to force dealers who break the rules to compensate customers, said O'Keefe.

Until that happens, his best advice is that prospective buyers get their vehicles thoroughly inspected before they buy them.

"That $150 and three or four hours that you spend — it could prevent some serious serious headaches down the road," he said.