New Motor Vehicle Dealers Act

February 10, 2010
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TORONTO — In an effort to ensure consumers are aware of pertinent aspects of a vehicle’s history, the provincial government, in cooperation with the Ontario Motor Vehicle Industry Council (OMVIC), has updated the legislation governing the sale of used vehicles.

OMVIC assumes enforcement responsibilities under the new MVDA, came into effect Jan. 1 and applies to more than 8,300 registered vehicle dealers and 22,000 salespeople in Ontario.

Aside from the disclosure requirements, the news release states, “the new MVDA also establishes circumstances in which a consumer can rescind a contract, and provides access to increased financial remedies from a dealer-supported compensation fund. These measures will increase consumer protection and require more dealer professionalism.”

The maximum compensation fund pay-out has been increased from $15,000 to $45,000 to reflect, the news release suggests, “the true cost of buying a vehicle today.”

The new legislation does not cover private sales.

“People should also be aware that if they purchase a vehicle from a private seller, they risk becoming a victim of a curbsider,” added an OMVIC representative in the news release. “Curbsiders are unregistered vehicle sellers in the business of selling misrepresented or stolen vehicles. They often operate entirely over the Internet, by mobile phone, and without a sales lot or signage. If consumers choose to deal with curbsiders, there is not much we can do to protect them.”

Consumers can identify registered dealers by the blue and yellow “Ontario-registered dealer” decal posted on dealership doors or windows, or by asking dealers for their OMVIC registration. Consumers can also find out if a dealer is Ontario-registered by contacting OMVIC or by searching for a registered dealer online at BuyWithConfidence.ca.