As the regulator of motor vehicle sales in Ontario, OMVIC’s mandate is to maintain a fair and informed marketplace by protecting the rights of consumers, enhancing industry professionalism and ensuring fair, honest and open competition for registered motor vehicle dealers. This is achieved by:
• Maintaining strict dealer/salesperson registration requirements
• Inspecting all Ontario dealers (new and used)
• Providing free complaint handling to consumers
• Developing/delivering consumer and dealer education/awareness programs
• Investigating and prosecuting industry non-compliance and illegal sales (curbsiding)
Consumers who do purchase from an OMVIC-Registered Dealer are entitled to a number of key protections including:
• All-in price advertising – dealers cannot add additional fees in excess of an advertised price with the exception of HST, licensing or for options the purchaser requested
• Full disclosure of a vehicles past-use, history and condition
• Cancellation rights – if a dealer fails to make certain mandated disclosures the consumer can cancel the contract within 90 days of delivery
• Access to the Motor Vehicle Dealers Compensation Fund – This fund compensates consumers who suffer a financial loss as a result of a trade with a registered dealer. The claims criteria is set out in the MVDA
Tips for Buying from an OMVIC-Registered Dealer
Buying registered provides consumer protection, but a signed contract is still FINAL! Consider the following car buying tips:
• Ensure salesperson understands your needs. Not being listened to? Buy elsewhere
• Take thorough test drive – not just around the block
• Understand “all-in” pricing, negotiate finance terms, don’t accept additional charges (except HST and licensing)
• Only pay for optional products or services you want and believe have value
• Used vehicle? Ask for history report; consider inspection by trusted mechanic
• Get all conditions in writing (e.g., repairs to be conducted)
• Get all disclosures and promises in writing (e.g., no accidents)
Carefully read contract (and loan agreement) – there’s no cooling off period once signed
Certified in Automotive Law and Ethics, Designation — C.A.L.E.
Dealers and salespeople must successfully complete and pass a course in automotive law and ethics, in order to be eligible for OMVIC registration. This course teaches and explains key pieces of legislation governing the retail automotive industry including the Motor Vehicle Dealers Act and the Consumer Protection Act. Having a C.A.L.E. designation helps to improve industry professionalism, maintain a fair and informed marketplace and demonstrates to consumers that dealers and salespeople are proven professionals who have met training standards.
Greater Consumer Protection through Legislation
When consumers purchase a vehicle from an OMVIC-Registered Dealer, they have vehicle-buying rights and consumer protections available.
• Full disclosure
• All-in pricing
• Cancellation rights
• Access to Motor Vehicle Dealers Compensation Fund
Tips for Buying Privately
You’re ONLY protected when you buy registered, so take extra care when buying privately. Consider the following car buying tips:
• Ask questions: how long was the vehicle owned? Are there maintenance records? Why are they selling?
• Confirm seller’s identity: check ID and proof of ownership
• Take thorough test drive – not just around the block
• Do research: order vehicle history report before deciding (CarProof, Carfax)
• Carefully review the Used Vehicle Information Package (UVIP) – seller must provide it (ensure all pages provided)
• Ensure no liens on vehicle (info usually available on UVIP or CarProof)
• Have vehicle inspected by trusted mechanic before purchase
• Avoid cash purchases: issue cheque to registered owner
• Don’t avoid taxes: request receipt that includes seller’s information
Know When You’re Protected
In Ontario, all motor vehicle dealers and salespeople must be registered with OMVIC. Consumer protection legislation ONLY applies when consumers buy from an OMVIC-Registered Dealer. There is no consumer law that covers private transactions. If something goes wrong, you’re on your own.
If you purchase a vehicle from an OMVIC-Registered Dealer, your transaction is protected by the Motor Vehicle Dealers Compensation Fund.
Review the mandatory disclosures that OMVIC-Registered Dealers must provide in writing to consumers related to the vehicle’s history and condition.