I bought a new car from a dealer several months ago. I just found out that the VIN of the car delivered to me is different than the VIN on the purchase agreement and financing agreement (the features of the car are exactly the same, and the VIN on transfer of ownership is consistent with VIN of the vehicle actually delivered). I wonder how this actually has happened, and is the dealer allowed to deliver a car with different VIN, but of same features? – Ciccy
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Perhaps the most significant event of 1981, after the wedding of Charles and Diana, was the introduction of the first standardized Vehicle Identification Number system. The VIN can usually be found on the driver's side dash, and also on a sticker on the driver's-side door. VINs are important for recall notices, repairs to your vehicle and for tracking vehicle history – which can help buyers avoid fraud before making a purchase.
Since we're talking about a new car here, it's unlikely your VIN error has to do with fraud. "VIN fraud is usually a concern in private or used-car sales," says Garry Robertson, national director of investigations at the Insurance Bureau of Canada. "For example, a curber may be concealing the real identity of a stolen or wrecked vehicle," Robertson says. "When they take a vehicle's VIN and paperwork and put it on a wrecked or stolen vehicle, it's called cloning – which is basically identity theft for cars."
In this case, it's likely an honest mistake. Dealers often carry multiple vehicles with the same options and colours. It is quite possible that a simple clerical error occurred, especially if just one or two of the VIN's 17 digits is off.
Registering, licensing and insuring your vehicle is not a problem, since the correct VIN is listed on the transfer of ownership. You could end up with some unexpected surprises, however, because the VIN on your purchase and financing agreements doesn't match the VIN of your vehicle.
When it comes time to do warrantied repairs to your vehicle, the dealership will check the warranty status using the VIN. If the incorrect VIN on the purchase agreement has been used to register your new vehicle with the manufacturer, the vehicle in your possession may not have been registered as sold. At the very least, this will cause a paperwork headache.
As for the financing documentation, this could cause a problem. Since the VIN on your finance agreement is incorrect, it is possible that someone else has your vehicle's VIN on their finance agreement. If that person defaults on payments to the point where the bank wants s to repossess the security (which happens to be incorrectly listed as your car), there may be a danger that they'll come knocking on your door.
"In my experience, if there are arrears, it be would tracked down using the VIN to the registered owner. The vehicle probably wouldn't be repossessed once the error was explained, but it would be very awkward. When purchasing, the owner should make sure all the paperwork is correct," says Dave Allan, director of special accounts at VanCity Bank.
Regardless of how this happened, it's in your interest to straighten things out and have the paperwork aligned. Go back to your dealership, and have a conversation with the business office so it can do up a proper bill of sale. It may be time-consuming and frustrating now, but far better than trying to explain this to a bailiff on your doorstep down the road.
Joanne Will welcomes your questions. E-Mail Ask Joanne at globedrive@globeandmail.com