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  UCDA
The Used Car Dealers Association of Ontario

416-231-2600 or 1-800-268-2598 or fax 416-232-0775

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Used Car Dealers Association of Ontario   

OMVIC Advertising Guidelines

What’s in a Name?

Under the MVDA, dealer ads must include the dealer’s registered name and business telephone number in a clear and large enough to be easily read manner. If there is limited space then the ad must at least include the word “Dealer” in the ad.

“Used” Vehicles

If the vehicle advertised is not new and is the current or previous model year, the ad must specify that the vehicle is “Used”.

All-in Pricing

Means, whether you advertise a vehicle price in print, on TV, radio, the internet or at your lot, the price must include all fees, charges or levies (like safety, e-test, admin. fees, freight, pdi, pde) except HST and the cost of licencing which can be declared by saying in the ad “tax and licencing extra”.

Warranty

Ads offering warranty included with purchase must state in a clear, comprehensible and prominent manner the term and maximum individual claim limits, if applicable.

“As Is”

If you have a car that you do not plan to recondition, certify or e-test, and you don’t want to guarantee it for a buyer, you may consider selling it “as is”. When price advertising an “as is” vehicle, OMVIC says the ad must clearly state:

“This vehicle is being sold “as is”, unfit, not e-tested and is not represented as being in a road worthy condition, mechanically sound or maintained at any guaranteed level of quality. The vehicle may not be fit for use as a means of transportation and may require substantial repairs at the purchaser’s expense. It may not be possible to register the vehicle to be driven in its current condition.”

Dealers are still required to provide all the OMVIC disclosures on the sale of an “as is” vehicle.

Vehicles advertised without certification or e-test

This is not the same as an “as is” sale, you would, for example, know at least enough about the vehicle to have a good idea what it will cost to certify and e-test and you will have responsibility for its quality and basic suitability as a means of transportation. When advertising a vehicle for a price that does not include safety certification and/or e-testing, the ad must clearly state:

“Vehicle is not drivable, not certified and not e-tested. Certification and e-testing available for $xxx.”

If you offer safety and/or e-test services, the cost must be disclosed in the above statement and it must not be a mandatory charge ... the purchaser must have the right to choose whether to have their own safety and e-test if they prefer.

Such vehicles may not be sold at or above the advertised price using the “as is” clause on the bill of sale.

As with “as is” sales, dealers are still required to provide all the OMVIC disclosures on these sales.

Daily Rentals etc.

If the vehicle advertised was a previous daily rental (not previously owned by a consumer), an emergency service vehicle or a taxi/limousine this fact must be clearly stated.

Credit Disclosures

If you’re offering vehicles for sale on a credit basis, the Consumer Protection Act, 2002 requires the following information be disclosed in the ad:

• the annual percentage rate for the credit agreement (“APR”)—this must be disclosed as prominently as the advertised monthly, bi-weekly or weekly payments

• the term of the credit agreement

• the cash price of the vehicle

• the “cost of borrowing”

If offering a variety of credit options, a representative example may be used ie:

“$20,000 x 60 months @ 5%=payment $377/mth, cost of borrowing $2,645”

If advertising on radio, billboard or where space is limited, a “cost of borrowing” example is not necessary, however, the APR, term and cash price are.

Lease Disclosures

If you’re offering vehicles for lease, the Consumer Protection Act, 2002 requires the following information be disclosed in the ad:

• that the offer is a lease

• the monthly, bi-weekly or weekly payments

• the term

• the annual percentage rate for the lease, this figure must be disclosed as prominently as the advertised monthly, bi-weekly or weekly payments

• the amount of each payment to be made by the lessee before or at the beginning of the lease, examples include:

• down payment

• security deposit

• the amount of any other payment the lessee will be required to make in connection with the lease, if this amount cannot be determined, then dealers must disclose how this amount will be determined, examples include:

• end of lease obligations

• for leases with kilometre allowances of less than 20,000kms per year, the excess kilometre costs, for example:

• 18,000kms/year, $0.20/km for excess

What if I’m advertising a variety of lease offers?

If an advertisement refers to various lease offers, a representative example may be used:

“Ex: $200/mth x 48mths@ 5%, with a down payment of $2,000 @ 20,000kms/year”

What if I’m advertising on radio or billboard, where there are time or space limitations?

When advertising with limited space, the following information is required, as long as consumers are directed to another source* for the remaining details:

• that the offer is a lease

• the term

• the monthly, bi-weekly or weekly payments

• down payment and/or security deposit

Examples of acceptable sources include: dealer website, toll free phone number with a pre-recorded message, advertisement in a local paper, this only applies to term and interest rate

* PLEASE NOTE:

“see dealer for details” is not acceptable, but can include toll free number and say “call for details”.