As part of the law, OMVIC-registered dealers must comply with ‘mandatory disclosures’ which is a key pillar of consumer protection.
Ontario’s Motor Vehicle Dealers Act, 2002 (MVDA) mandates 22 specific disclosures dealers must make regarding a car’s past usage and condition. These can be found on OMVIC’s website omvic.ca.
For example, in the case of a vehicle that was in an accident and sustained damage exceeding $3,000, a dealer must clearly disclose this information in writing, so that buyers are equipped with all the necessary information regarding the vehicle’s suitability and safety. Not doing so goes against provisions in the MDVA and can also be a safety hazard for drivers and buyers that are unwillingly purchasing poorly repaired vehicles.
Dealers must disclose numerous details about the history of the car. This allows the consumer to make an informed decision. It is also important for dealers to reveal how their vehicles have been modified and/or which specific parts were involved. Furthermore, they must inform buyers of the actual distance traveled by the vehicle and cannot misrepresent the odometer reading.
All mandatory disclosures to consumers must be in writing, verbal disclosures do not satisfy MVDA requirements. Regardless of whether the dealer or salesperson discloses the vehicle history, it must be clearly spelled out on the contract. Furthermore, as a registered dealer, it is your responsibility to let the consumer know that unless otherwise noted, Ontario has no cooling-off period, so once they sign a contract, they have committed to the purchase with no exceptions.
OMVIC’s resources are available to you
Do you want to ensure that you’re compliant? Work closely with OMVIC during the process and access its resources.
Stay up to date on the latest guidelines for dealership sales operations at omvic.ca. Contact our dealer support team at firstname.lastname@example.org or call 1-800-943-6002 Ext. 4 if you have any questions about MVDA laws and more.
OMVIC’s resources, tips, measures, checklists, and recommendations will help you remain compliant with the MVDA in an ever-evolving vehicle sales landscape.
OMVIC also offers free education services and webinars for dealers upon request, email email@example.com.
Follow OMVIC on social media to stay up to date on the latest news.
LinkedIn: Ontario Motor Vehicle Industry Council