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The Used Car Dealers Association of Ontario

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

Used Car Dealers Association of Ontario   


We've  compiled the following questions & answers  from  information
requests we've received from members that we hope will help members.
If you have any questions not answered here, you can email your question
to or call UCDA 1-800-268-2598

Updated: 02/05/2010

    Dealer Classes

  • What is a Wholesale Dealer?
  • Wholesale dealers may only buy from and sell to other dealers, including at dealer auctions. They may not deal with consumers.
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  • Can Wholesale dealers lease vehicles?
  • No. Wholesale dealers may not lease vehicles to consumers.
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  • Are auctions dealers?
  • Dealer auctions are exempt from the MVDA. However, auctions are required to ensure that all sellers at the auction abide by the MVDA and disclose the same information that dealers who sell to retail consumers must disclose.
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  • Can a salesperson work for more than one dealer?
  • Yes, as long as all of the dealers involved have notified OMVIC in writing that they are agreeable to this.
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  • Do dealer ads need to include the name of the dealer?
  • Most ads placed by dealers must contain the registered name and address of the dealer. The only exception is in classified ads, where the word DEALER may be used instead of the full name and address, to make it clear that the ad is not a private ad.
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  • What has to be included in the advertised price of a vehicle?
  • Advertised prices must include all fees, (e.g. administration fee, government fees, freight, pdi, safety inspection fees, OMVIC fee, etc.) charged by the dealer as part of the sale. An ad does not need to include GST and PST in the price as long as the ad indicates that they are not included. Typically, a dealer would advertise something like "taxes extra" or "GST and PST not included".
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  • What advertising is covered by the new regulations?
  • Any representation of a vehicle for sale to the public, such as print, radio, TV and internet are considered to be ads. Price signs or stickers in windows of vehicles are also considered to be ads. The advertised price must include any administration fee, doc fees, or any other fees being charged by the dealer as part of the sale. If the ad shows these fees, it must be made clear that these fees are included in the sale price shown.
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  • Do I need to show a price in my ads?
  • No, nothing requires you to advertise a price.
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  • Can I show administration or other fees on my bill of sale?
  • Yes, but if the vehicle had been advertised with a price, these fees must be included in that price, not additional to it.
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  • What about variable fees like licensing fees?
  • Variable licensing fees are not considered to be a part of the sale of the vehicle. The Ontario government fee to register a licence plate to a vehicle would be an extra charge.
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  • Do daily rentals need to be identified in ads?
  • Yes. Only if a former daily rental has been owned by a consumer or non-dealer company after it was a daily rental, is no disclosure is required. If it has been owned by a leasing company since it was a daily rental, the ad must identify the vehicle as a former daily rental, since it has not been owned by a non-dealer.
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  • Is the same true for police cruisers, taxis, etc.?
  • No. If a vehicle was ever a police cruiser, emergency service vehicle, taxi of limo, it should be identified in the ad. It doesn't matter if it has been owned by non-dealers since then.
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  • If a demo is being advertised, does the ad have to indicate that it's a demo?
  • The ad doesn't need to use the word demo, but if the vehicle is the current model year, or the immediately preceding model year, the ad must identify the vehicle as "used", not just as a "demo". E.g. a used 2009 or 2010 vehicle being sold in 2010 must state that it's "used".
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  • Can I advertise a vehicle at an "As Is" price and charge extra for the safety and emissions test?
  • Yes, but OMVIC has advised that the ad must be clear that the advertised price is for an as is non-roadworthy vehicle. OMVIC requires that the ad contain the full wording of the “As Is clause” as shown on the UCDA Used Vehicle Bill of Sale as follows:
    VEHICLE SOLD AS IS: The motor vehicle sold under this contract is being sold "as is" and is not represented as being in roadworthy 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.
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    Selling a Vehicle

  • Can I take a deposit without having the customer sign a bill of sale?
  • You can but, if you do, the customer has every right to demand the full deposit back because there is no contract.
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  • What are the requirements for disclosing distance traveled when selling a used vehicle?
  • The bill of sale sets out three options for disclosing a vehicle's distance traveled. If the odometer is accurate, show that figure on the bill of sale. If it is not, check off the applicable box on the bill of sale for the distance traveled being unknown.
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  • Does it really matter if the distance traveled disclosed on the bill of sale doesn`t match the odometer?
  • Yes it does, here's a case in point. Days after the new law came into effect a consumer called the UCDA and complained that he bought a vehicle, and signed a bill of sale, with 57,689 kms shown. He took delivery of the car on January 5, 2010 and the Safety, which was dated that same day, also showed 57,689 kms.

    On the drive home the customer called to complain to the salesman the vehicle's odometer showed 58,589 kms.

    Under the Regulations to the new Motor Vehicle Dealers Act, if the odometer on the vehicle has 1,000 kms or 5% (whichever is less) more than shown on the contract the customer can have a full refund, no questions asked, within 90 days of buying the car.

    This dealer dodged that bullet, in this case, by 100 kms.
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  • If I receive a commission from a bank or other lender for referring a customer, do I have to tell the purchaser, and do I have to tell them how much the commission is?
  • You need to tell the customer you are receiving a commission. There is a section on the UCDA New and Used bills of sale to do so. You do not need to tell the customer how much you receive.
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  • If I sell a car "As Is", can my customer drive it away?
  • No. Selling a car "As Is" tells the purchaser that the vehicle may not be roadworthy and not fit as a means of transport. It would not be legal for the purchaser to drive the vehicle away from your lot. The vehicle should be towed to the purchaser's location or delivered with a dealer plate, prior to transferring the registration into the purchaser's name "unfit".
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  • Can I sell a vehicle if the ABS or air bags are inoperable?
  • Yes, but this must be disclosed to the purchaser, including a sale to another dealer.
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  • Am I responsible for air conditioning and electrical issues when selling a used vehicle?
  • Yes, on a retail sale of a vehicle, disclosure must be made if the air conditioning, fuel system, computer or electrical systems are not operating properly or if the suspension needs repair. You cannot sell a vehicle excluding these responsibilities.
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  • What is meant by "trim level" and do I need to disclose it on my bill of sale?
  • Trim level is the manufacturer`s classification of the model`s sub-grouping, such as SE, SEL, SES, Limited, Touring, Premium, etc. The regulations require dealers to show it on all bills of sale.
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  • How do I deal with the CAMVAP Statement on the bill of sale and disclosure statement?
  • There are two "check boxes". Dealers need to check the box that applies. Most manufacturer's participate in the CAMVAP programme, so the "Yes" box should be checked on most sales. However, BMW, Mini Cooper, Mitsubishi and most exotic foreign sports car manufacturers do not participate. When selling these vehicles, the "No" box should be checked off.
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  • Do the MVDA regulations apply to trailer sales?
  • No, the regulations apply only to motor vehicles. Motorized RVs are covered … but trailers are not.
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  • If a consumer negotiates a purchase price lower than the advertised price of a vehicle, can I charge administration and other fees?
  • Yes, but the total price of the vehicle, including the fees, may not exceed the advertised price of the vehicle. E.g., advertised price $12,995, plus taxes. Customer negotiates price to $11,995, plus taxes. Dealer may add $299 administration fee.
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  • Do I need to tell consumers how much it cost to repair previous damage to a vehicle?
  • If you know that damage repairs were more than $3,000 and you know the actual cost, you should disclose the dollar amount. Where you do not know the dollar amount of the repairs, you can simply disclose that the vehicle has been an "accident repair over $3,000".
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  • If I know or believe that past damage to a vehicle cost less than $3,000 to fix, do I need to disclose this when I sell the vehicle?
  • If you believe that a reasonable purchaser would want to know about the past damage, you should disclose it. If in doubt about the extent of the damage or how much it actually cost to repair the damage, you may want to disclose "past accident repair" when selling the vehicle.
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  • Do I need to disclose past accident damage, out of province vehicles or any of the other disclosures required by the regulations where I’m selling a vehicle "As Is"?
  • Yes. "As Is" sales are simply telling the purchaser that the vehicle is not roadworthy and not currently fit as a means of transportation. The disclosures required by the regulations must be made on any vehicle sold, with the exception of vehicles that are going to be wrecked and branded irreparable and therefore never going on the road again.
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  • If a vehicle is from another province or the U.S., do I need to disclose which provinces or states it's been registered in?
  • Yes, if the vehicle has not been in Ontario for at least 7 years, you must disclose every province or state in which the vehicle has been registered during that time. An Auto-Check™ will indicate if it's been registered in other provinces or imported from the U.S. If it`s been in the U.S., a Carfax search will show the states in which it was registered.
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  • Do I need to make these disclosures if I’m selling a vehicle for export?
  • Yes.
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  • Do the disclosures need to be made on dealer to dealer sales?
  • Yes, with the exception of the items shown in the next question, the same disclosures need to be made on dealer to dealer sales, including at dealer auctions, as when selling retail.
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  • What is the difference between required disclosure on wholesale sales and for retail sales?
  • The disclosure requirements for retail and wholesale sales are almost identical. The only difference is that on a retail sale you must disclose if repairs are need to:

    • The engine, transmission or powertrain
    • The subframe or suspension
    • Computer equipment
    • The electrical system
    • The fuel system
    • The air conditioning

    These disclosures are not required by the regulations on dealer to dealer sales.
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  • Do the disclosure obligations apply to vehicles I have in my inventory prior to January 1, 2010?
  • Yes, you are responsible to make the required disclosures on any vehicle you sell after January 1, 2010. It does not matter when you obtained the vehicle.
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  • Do I need to give purchasers copies of work orders for work I do or have done to a vehicle before selling it?
  • No, you do not need to provide any information to a customer about what reconditioning or repair work you have performed on the vehicle prior to selling it. You are, however, required to keep a record of repairs you have done or had done, and have them available for OMVIC inspection.
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  • Do I need to give a copy of the trade-in appraisal form to the customer trading a vehicle in?
  • No. Page 4 of the UCDA Appraisal/Disclosure form, which is headed "Retail Seller's Disclosure Statement", is designed to give to the customer who purchases the trade-in from you. It contains any required disclosures.
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    Consumer Cancellation Rights

  • When can a consumer cancel a contract?
  • Consumers may demand cancellation of a contract within 90 days of purchasing or leasing a vehicle, if the contract does not accurately disclose, in writing, any of the following:

    • the distance traveled to within 5% or 1,000km, whichever is less
    • the vehicle was formerly a daily rental, not owned by a non-dealer, a police cruiser, mergency service vehicle, taxi or limo
    • the year, make and model of the vehicle
    • if the vehicle is "branded" (Irreparable, Salvage or Rebuilt)
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  • What if past accident damage is not disclosed?
  • While a consumer may have rights where a dealer has failed to disclose accident damage, this does not give the consumer an automatic cancellation right. Consumers may have other remedies through the courts and failure to disclose past damage may cause significant concerns for OMVIC.
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  • Do I need to return a vehicle traded-in, where a consumer cancels the contract within 90 days?
  • No. You're not obligated to return the trade-in vehicle, even if you still have it, but your refund to the customer will need to include the value of the trade allowance shown on the bill of sale. There are no taxes to be refunded on the value of a vehicle that was traded-in.
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  • What if a consumer cancels a sale financed through a third party lender, but arranged through the dealer?
  • When the contract is cancelled, the dealer will need to return the amount advanced to the lender. Until the money is returned, the lender will continue to hold a lien over the vehicle, with the dealer as the debtor. The dealer will be unable to re-sell the vehicle until the lien is discharged.
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  • What if the vehicle returned by the consumer when cancelling a deal has been driven a large distance, been damaged or is in very poor condition?
  • Unfortunately, the condition of the vehicle doesn't matter. If any of the disclosures triggering cancellation are not made, the regulations state that the consumer is entitled to a full refund.
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    Trust Accounts

  • Do I need to keep a trust account?
  • You only need to keep a trust account if you take deposits greater than $10,000, or if you sell a vehicle on consignment for a consumer. Proceeds of any consumer consignment sale must go into a trust account prior to being passed on to the consumer consignor.
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    Extended Warranties

  • How will I know if I am permitted to sell a third party warranty provider's product?
  • OMVIC ‘s website contains a list of the warranty companies that have provided proof that they are insured and of those that have provided the Compensation Fund with an irrevocable letter of credit. In addition the UCDA continues to maintain a list of companies that have satisfied the UCDA that their warranty products are fully insured by a licensed Ontario insurer and meet the UCDA`s more detailed requirements.

    Here is the current list:

    Coast to Coast Services 1-800-387-0119
    Cornerstone United Warranty
    (XtraRide and AutoXtra)
    Coverage One Warranty1-866-988-1642
    First Canadian Protection 1-800-381-2580
    Global Warranty 1-800-265-1519
    INDS Canada Warranty 1-800-995-0290
    Lubrico Warranty 1-800-668-3331
    NationWide Auto Warranty 1-888-674-8549
    Peoples Choice Warranty 1-888-284-2356

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    Appraisal Process

  • The appraisal form has 4 pages, what do I give to the customer and what do I keep?
  • Page 1 is the appraisal of the trade and is kept in the car deal jacket of the car you’re selling.
    Page 2 is a copy of the appraisal and should be kept in the deal jacket of the trade-in.
    Page 3 is the dealer’s copy of the disclosure statement and should be attached to the dealer’s copy of the bill of sale when the trade-in is sold and kept in the trade in deal jacket.
    Page 4 is Retail Seller’s Disclosure Statement. It is kept in the trade-in deal jacket and attached to the purchaser’s bill of sale when the trade in is sold.
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  • If I wholesale a vehicle, do I need to give the purchasing the dealer the Retail Seller’s Disclosure Statement?
  • No. Where a vehicle taken as a trade-in is sold to another dealer, you don’t need to give the purchasing dealer the Retail Seller’s Disclosure Statement. Make the disclosures contained on the Retail Seller’s Disclosure Statement to the purchasing dealer by checking off the appropriate disclosure boxes on the Wholesale Bill of Sale. Keep the Retail Seller’s Disclosure Statement in the file for the vehicle.
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  • What do I do with vehicles that I purchased before Jan 2010?
  • All vehicles sold in 2010 are subject to the new disclosure requirements including vehicles purchased prior to January 1st, 2010. Appropriate searches need to be done to be able to make disclosures to the purchaser.
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  • What if a customer trading-in a vehicle refuses to sign the form?
  • If the customer refuses to sign the form, simply write REFUSED in the box and appraise the vehicle accordingly.
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  • If the customer is not the original owner of the vehicle, how do they answer the questions on the form?
  • Customers can only answer the questions for the time they have owned the vehicle. Appraising multiple owner vehicles requires a better inspection and may require vehicle history searches and accident reports before you finalize the deal.
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  • If the customer fails to disclose something to me and I sell the vehicle with no disclosure am I still responsible?
  • Dealers are always responsible for making disclosure...even if the customer lies to you. The appraisal process done properly may assist you in taking action if a problem of non-disclosure occurs.
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  • Pages 3 and 4 have the signature of the owner, am I violating the privacy act when I give the new purchaser the disclosure statement containing the previous owner’s name?
  • No. The previous owner’s name is not private; any personal information that is covered by the Privacy Act does not go through to pages 3 and 4 of the disclosure statements.
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  • If there are no disclosures to be made do I need to give the next customer page 4?
  • No, if no disclosures are being made, you do not need to give the form to the customer. You can keep the statements in the deal jacket.
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  • Do I still need to get the trim level as part of the vehicles description?
  • Yes, disclosure of the trim level is required by the regulations and is important in determining the true value of the trade. The trim level should be determined at the time the vehicle is being appraised.
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  • If something is wrong with the vehicle do I have to fix it before selling it?
  • The regulations require disclosure to a retail buyer if any of the following need repair:

    • The engine or transmission
    • The subframe or suspension
    • Computer equipment
    • The electrical system
    • The fuel system
    • The air conditioning

    If one of the listed components is not operating properly, you’ll probably want to repair it, but you do not need to. If you sell the vehicle at retail without repairing the problems, you must make the disclosure that it is defective.
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  • If the dollar amount of the accident is not on a report what do I disclose?
  • After inspecting a vehicle and completing the appraisal process, you are still unable to determine the dollar amount of the past damage, you should disclose that the vehicle has had past damage if:
    • you believe the damage likely cost more than $3,000 to repair;
    • even if you think the cost of repairs were likely less than $3,000, but you believe a reasonable person would still want to know about the past accident when purchasing the vehicle.
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  • How do I determine if a vehicle was declared a total loss by an Insurance company and is not branded?
  • Not all total losses are branded, but a UCDA Vehicle History Search, showing past owners, will usually show an insurance company’s name as evidence the car was declared a total loss.
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  • Do I have to complete this form on $100.00, vehicles that I am going to wholesale?
  • Yes, all vehicles are covered unless you are transferring the registration into wrecked status and sell it to a wrecker for scrap.
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    UCDA Wholesale Bill of Sale

  • When do I use the UCDA Wholesale Bill of Sale?
  • You should use the UCDA Wholesale Bill of Sale anytime you are purchasing a vehicle from, or selling a vehicle to, another registered dealer.
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  • Why are there so many items with tick boxes beside them on the Wholesale Bill of Sale?
  • The regulations require most of the same disclosures to be made on sales between dealers as in sales to consumers. The items listed are required disclosures on wholesale transactions. Where disclosure of any of the items is needed, the “Yes” box beside the item should be ticked.
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  • What if there are no disclosures to be made?
  • If there are no disclosures to make, simply leave the tick box beside each disclosure item blank.
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  • Why is there space to show only one vehicle on the Wholesale Bill of Sale?
  • Because the required disclosure tick boxes on the Bill of Sale can only apply to one vehicle at a time, the Bill of Sale can only identify one vehicle, to which the applicable disclosures apply.
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