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ARTICLE · 22 MAY 2015

Can An Unhappy Consumer Refuse To Pay A Car Loan?

Minden Gross LLP
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The recent decision of the Ontario Court of Appeal in BMW Financial Services Canada, a Division of BMW Canada Inc. v. McLean provides some useful insight into the relationship between automobile dealers and the financing arms of the manufacturers for whom those dealers are franchisees.

CanadaConsumer Protection
A. Irvin Schein
A. Irvin Schein
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Originally published at irvinschein.com.

The recent decision of the Ontario Court of Appeal in BMW Financial Services Canada, a Division of BMW Canada Inc. v. McLean provides some useful insight into the relationship between automobile dealers and the financing arms of the manufacturers for whom those dealers are franchisees.

In this case, Ms. McLean purchased a BMW from a BMW dealership in 2009. The purchase price was just under $110,000.

BMW Financial Services Canada financed the purchase. The financing agreement assigned the dealership's rights entitled to the car to BMW Financial, which registered a security interest in the car in the usual manner.

Ms. McLean was dissatisfied with the vehicle. She returned to the dealership for service a number of times. Ultimately, she made a unilateral decision to return the car to the dealership in late 2010 and stopped making payments to BMW Financial.

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