FEDERAL GRINCH BRINGS MORE RED TAPE FOR DEALERS

FEDERAL GRINCH BRINGS MORE RED TAPE FOR DEALERS

On Nov. 30, 2024, the Government of Canada published draft amendments to regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the “PCMLTFA”). The stated purpose of the proposed amendments is to strengthen Canada’s Anti-Money Laundering and Anti-Terrorist Financing (“AML/ATF”) framework and address evolving threats to Canada’s financial system while aligning the country with international standards set by the Financial Action Task Force, the international AML/ATF standard-setting body.

This will be the same reporting system banks use for Source of Funds declarations and that sort of thing. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence unit and anti-money laundering and anti-terrorist financing supervisor. Its mandate is to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the protection of personal information under its control.

Vehicle over $100,000 finance and leasing

The Federal Government want to extend this kind of reporting to vehicle leasing and financing for business purposes, passenger vehicles and goods valued above $100,000.

Part of the problem is this massive document invites comments only until December 30th, and this while the holiday season is upon us! Even the Ottawa bureaucrats are not in the office after this week.

The other problem is we have seen no evidence this problem exists in Ontario. We have never seen a massive prosecution or enforcement in the automotive industry involving money laundering or terrorist funding. This has all the earmarks of a solution in search of a problem and worse, an exercise in optics that will add costs, red tape and increase the price of vehicles for consumers.

The proposed amendments are planned to come into force in two phases. Those related to information sharing would come into force immediately upon publication of the final regulations in the Canada Gazette. The other amendments would come into force on Oct. 1, 2025, to allow businesses to prepare to comply with the new requirements.

Leasing and financing companies will be regulated under FINTRAC and be required to implement compliance measures set out in the PCMLTFA. These include AML/ATF compliance programs, customer due diligence, record-keeping, and reporting of  suspicious transactions. Such companies would also be required to verify identity and keep a record of every transaction of $3,000 or more.

An administrative monetary penalty for non-compliance is proposed with a range of $1,000 to $500,000 depending on the seriousness of the violation.

Strengthening border controls

Ottawa also proposes to grant the Canada Border Services Agency (CBSA) the power to seize and forfeit goods where it has reasonable grounds to believe that the goods are proceeds of crime or related to money laundering, terrorist financing or sanctions evasion.

Traders (persons or entities) would be required to attest to the CBSA that imported and exported goods are not proceeds of  crime or related to money laundering, terrorist financing, or sanctions evasion. They would also be required to attest that the goods represented as being imported/exported are, in fact, being imported/exported, as a means to combat the use of  phantom shipments.

Entities involved in importing and exporting goods would need to implement systems to report transactions to the CBSA, ensuring adherence to the new trade-based financial crime reporting obligations. Record-keeping requirements would also be imposed similar to what is already required for customs and tax purposes.

The UCDA will certainly be making submissions on these concerning developments, and we urge you to do the same here:

https://canadagazette.gc.ca/rp-pr/p1/2024/2024-11-30/html/reg1-eng.html

and let your MP know what you think as well here:

https://www.ourcommons.ca/members/en

REGISTRATION EXTENSION FOR LIGHT DUTY AND STRUCTURAL INSPECTION STATIONS

REGISTRATION EXTENSION FOR LIGHT DUTY AND STRUCTURAL INSPECTION STATIONS

Light duty and structural Motor Vehicle Inspection Stations (MVIS) now have until MARCH 31, 2025 to register for the new digital safety platform called DriveON.
MVIS facilities that only conduct light-duty/passenger vehicle inspections, can apply through the DriveON portal at www.driveonportal.com. The MTO’s full release and other important news can be seen below:
Ministry of Transportation
Commercial Safety and
Compliance Branch

301 St. Paul Street, 3rd Floor
St. Catharines ON L2R 7R4
1 800 387-7736, 416 246-7166 cvor@ontario.ca		 Ministère des transports Direction de la sécurité et de la conformité en matière de transport commercial
301, rue Saint-Paul, 3e étage
St. Catharines ON L2R 7R4
1 800 387-7736, 416 246-7166
cvor@ontario.ca
MEMORANDUM TO: MVIS Stations and DriveON Vehicle Inspections Centres
FROM: Jennifer Elliott
Director
DATE: 8-Dec-24
SUBJECT: Updates Regarding DriveON and MVIS Programs
Over the past year MTO has rolled out DriveON–the new digital platform to modernize and streamline Ontario’s vehicle safety and emissions inspections program, to replace the current paper-based Motor Vehicle Inspection Stations (MVIS) program.

Extension of DriveON program In order to ensure a smooth transition to DriveON, MTO is now extending MVIS program until March 31, 2025, only for light duty and structural stations that have not already joined DriveON. This will give stations that are transitioning to DriveON additional time to receive and learn how to use the new equipment while allowing them to continue conducting inspections under MVIS.

Stations that want to continue conducting vehicle safety inspections after March 31, 2025, must join the DriveON program, as the MVIS program will be ending on that date.

Inspection stations that conduct structural inspections can onboard to the DriveON program via the DriveON portal at a future date.

If you have not joined DriveON and you had a valid MVIS licence on December 31, 2024, your MVIS licence and technicians will automatically be extended to March 31, 2025. You will not receive an MVIS renewal package. You are still required to display your 2024 MVIS licence and keep records of all MVIS inspections carried out until December 31, 2025. Please note that you cannot operate under both programs simultaneously; you can only operate under one — MVIS or DriveON.To apply to the DriveON program, please visit Driveonportal.com.

Annual and Semi-annual Inspections 
As of October 1, 2024, all Annual and Semi-Annual Inspections must be performed under the DriveON program.

All MVIS annual or semi-annual stickers and certificates are the property of MTO and must be returned to MTO. Affixing or issuing annual or semi-annual inspection stickers under the MVIS program is prohibited and the maximum fine is $1,000 for each offence and your enrollment into the new DriveON program may be revoked or refused.  

Please note that you must also surrender any remaining MVIS stock if instructed by a Transportation Enforcement Officer. Please return unused stickers or certificates by mail to the address below:

Ministry of Transportation – MVIS unit
301 St. Paul Street, 3rd Floor
St. Catharines ON L2R 7R4

As you transition from MVIS to DriveON, please note the options and restrictions that apply to you based on your status in these programs:

Active in MVIS
This section applies to any active MVIS that may have also applied to the DriveON program.
  • MVIS Licence: Your licence will be automatically extended to March 31, 2025, at no cost. Keep displaying your 2024 MVIS licence and keep records of all MVIS inspections carried out until December 31, 2025.
  • DriveON Statuses: If you have applied to the DriveON program and your application is in the following status, you can continue operating under the MVIS program:
    • Waiting for Ministry to approve contract.
    • VIC in readiness process.
    • Application is MTO User Approved.
  • Annual & Semi-Annual Certificates: You cannot complete annual and semi-annual inspections (these can only be performed in DriveON). Please return all MVIS stock to MTO.
  • Safety Standards and Structural Inspection Certificates: You can continue safety standards and structural inspections under the MVIS program until March 31, 2025, or until you become “Active” under the DriveON program. You can order paper-based MVIS safety standards and structural inspection certificates until January 31, 2025.
Active in DriveON This section applies to all stations that have been approved to join DriveON, have received their equipment, and are operating as a Vehicle Inspection Centre.
  • MVIS Licence: Your licence will be automatically terminated once you have commenced conducting inspections under DriveON.
  • DriveON Statuses: Your DriveON status is:
    • Active
    • Locked
  • Annual & Semi-Annual Certificates: You can complete annual and semi-annual inspections using DriveON equipment ONLY. After a successful inspection (“pass”), annual and semi-annual stickers can be printed and affixed to the vehicle.
  • DriveON VICs pay a fee for each “pass” annual or semi-annual certificate issued when an inspection is completed via their Pre-Authorized Debit (PAD). PAD fees will be collected on a weekly basis. Blank stickers for annual and semi-annual inspections are ordered through the DriveON portal at no cost.
  • Safety Standards and Structural Inspection Certificates: If you have joined DriveON and received equipment, then you must conduct all Safety Standards inspections using the DriveON equipment. More information pertaining to Structural Inspections under DriveON will be communicated shortly.
  • After a successful (“pass”) safety inspection is completed via your PAD, VICs will pay a fee for each safety standards certificate issued on a weekly basis. Safety standards certificates are issued digitally, and no paper-based stock needs to be ordered.
If you have any questions about the MVIS program, please contact MTO toll free at 1- 800-387-7736 or e-mail cvor@ontario.ca

If you have any questions about the new DriveON program, please contact the Vehicle Inspection Centre Assistance Line toll free at 1-833-420-2110 or email VIC@driveonportal.com

Sincerely,
Jennifer Elliott
Director

Digital Dealership Registration Webinar

Digital Dealership Registration Webinar

The Ministry of Public and Business Service Delivery and Ministry of Transportation are hosting a webinar on Digital Dealership Registration on December 17, 2024.

They’ve asked us to share the following information:

You’re Invited!

Join us to learn more about Digital Dealership Registration!

The Ministry of Public and Business Service Delivery and Procurement (MPBSDP), in collaboration with the Ministry of Transportation (MTO), will be hosting a webinar on the Digital Dealership Registration (DDR) program.

DDR is a web application that enables Ontario dealerships to complete vehicle registrations online, minimizing visits to ServiceOntario centers. It integrates with existing systems for a quick, easy, and secure registration process for new and used vehicle purchases.

Save the Date! Join us on Wednesday, December 17th, 2024, from 1:00 PM to 2:00 PM for an informative session on the DDR program. We’ll provide a step-by-step demonstration, sign-up instructions, and answer your questions. 

Before You Sign Up, a quick checklist:

  1. Your dealership is located in Ontario.
  2. Your dealership is registered with the Ontario Motor Vehicle Industry Council(OMVIC).

Sign up today to secure your spot for the DDR webinar! Click HERE

EXPORTS AND THE TRANSACTION FEE

EXPORTS AND THE TRANSACTION FEE

It seems, since 2022, the OMVIC portal for online dealer renewals was not as clear on Export sales as it could have been.

The question simply asked how many vehicles you sold for Export; it did not ask if the sales were to non-dealers (which attracts the transaction fee) or to a dealer (which would not).

While OMVIC is studying the issue of how to confirm if a dealer outside of Ontario is really a dealer, any Members who feel they may have over-submitted the transaction fee are welcomed to contact OMVIC and have their file reviewed going back to 2022 by contacting OMVIC at the below email address:

registration@omvic.on.ca

The new portal will look like this:

THANKSGIVING DAY – OCTOBER 14, 2024

THANKSGIVING DAY - OCTOBER 14, 2024

Dealers are legally required to close on Thanksgiving Day, Monday, October 14th, unless located in a tourist area as designated by their local municipality.

Dealers may be open on Saturday, October 12th and, if they wish, on Sunday, October 13th.

The UCDA search facility will be closed on Thanksgiving Monday, but will be available as usual from 9:00 a.m. to 5:00 p.m. on Saturday, October 12th and 9:00 a.m. to 8:00 p.m. on Tuesday, October 15th.

On-line searches are available on Thanksgiving Monday at www.ucdasearches.com

DriveON Light-Duty/Passenger Vehicle Rollout and Extended Transition Period for Annual and Semi-Annual Inspections

DriveON Light-Duty/Passenger Vehicle Rollout and Extended Transition Period for Annual and Semi-Annual Inspections

Motor Vehicle Inspection Stations (MVIS) offering ONLY light-duty vehicle safety inspections are now finally able to apply for, and enroll in, the new digital safety platform.

MVIS facilities that only conduct light-duty/passenger vehicle inspections, can apply through the DriveON portal at www.driveonportal.com.

The MTO’s full release and other important news can be seen below:

MEMORANDUM TO:      Motor Vehicle Inspection Station (MVIS) and DriveON Stakeholders

FROM:                              Jennifer Elliot

                                              Director

DATE:                                August 30, 2024

SUBJECT:                        DriveON Light-Duty/Passenger Vehicle Rollout and Extended Transition Period for Annual and Semi-Annual Inspections

In July 2022, the Ministry of Transportation (MTO) started combining the heavy-duty diesel vehicle emissions testing program and MTO’s Motor Vehicle Inspection Station (MVIS) program into a single digital inspection program called DriveON. We have been onboarding MVIS facilities to DriveON in a phased approach and are ready to open the next phase, which is onboarding of Light-Duty MVIS facilities.

September 3, 2024 – Light-Duty MVIS Facilities can start applying to the DriveON program

  • MTO is pleased to announce that enrolment into DriveON will open on September 3, 2024, for current MVIS facilities that only conduct light-duty/passenger vehicle inspections.
  • MVIS facilities that only conduct light-duty/passenger vehicle inspections, can apply through the DriveON portal at www.driveonportal.com.
  • Facilities whose applications are approved by the ministry will be onboarded and allowed to purchase the necessary equipment through the DriveON portal.
  • To ensure MVIS facilities receive their DriveON equipment prior to the ending of the MVIS program on December 31, 2024, it is strongly recommended they complete the enrolment process and purchase equipment prior to November 1, 2024.

Complimentary Inspection Tablet for Light-Duty Facilities

  • To help support the industry, the ministry will be providing one complimentary inspection tablet to all currently licensed MVIS facilities whose applications have been approved to DriveON during the purchase of the initial equipment package. 
  • MVIS facilities that only conduct light-duty/passenger vehicle inspections will be eligible to receive one complimentary inspection tablet if onboarded to DriveON before December 31, 2024. 
  • If MVIS facilities don’t apply to DriveON by December 31, 2024, they will no longer be able to conduct light-duty/passenger vehicle inspections under the MVIS program. These facilities will have to wait until the next phase of onboarding occurring after December 31, 2024, to apply and will not be eligible to receive a complimentary inspection tablet.

Technicians Entering the DriveON Program Must:

  • Have a valid Certificate of Qualification with Skilled Trades Ontario that is active and for which all fees have been paid. This information can be verified by calling 1-855-299-0028 or going online and checking the public registry for status through Skilled Trades Ontario at www.skilledtradesontario.ca.
  • Register as a technician on the DriveON portal.
  • Complete the mandatory online training available on the portal, which is free of charge and available 24/7.

MVIS facility owners and technicians are encouraged to review the Program Enrolment Package and begin collecting the required documents for their DriveON application. The Program Enrolment Package can be found on the DriveON portal at www.driveonportal.com.

DriveON Vendor

Further information regarding the process on how to enrol in the DriveON program will be communicated by the DriveON vendor, Parsons Inc. Additionally, Parsons will be hosting information sessions during the month of September, and we encourage you to attend to have your questions and/or concerns addressed:

  • Wednesday, September 4th at 11:00am
  • Wednesday, September 4th at 2:00pm
  • Thursday, September 5th at 12:00pm
  • Tuesday, September 10th at 10:30am
  • Tuesday, September 10th at 2:00pm
  • Wednesday, September 11th at 10:00am

If you have any questions about the new DriveON program, please contact the Vehicle Inspection Centre Assistance Line toll free at 1-833-420-2110 or by email at VIC@driveonportal.com.

Annual and Semi-annual Certificates Transition Period Extension

  • Annual and semi-annual certificates can no longer be ordered.
  • Ontario Regulation 170/22: Vehicle Inspection Centers states that MVIS stations are to stop issuing or affixing annual or semi-annual stickers after July 31, 2024.
  • However, MTO provided an educational transition period to help existing MVIS stations enter the DriveON program, and to reduce the burden on the industry. During this transition period, existing MVIS stations may continue to issue annual and semi-annual stickers and certificates. MTO is extending the transition period one more time from August 31, 2024, to September 30, 2024.

Refunds

All unused MVIS certificates and stickers must be returned to MTO. Stations that have joined DriveON and have received their equipment, are required by legislation to return all unused MVIS books and certificates. If stations use MVIS certificates, they can face charges and their enrolment into the new DriveON program may be revoked or refused.

  • To qualify for refunds:
    • unused forms of annual inspection and semi-annual inspection certificates and stickers must be returned by October 31, 2024. Heavy-duty stations must also return unused safety standards certificates by October 31, 2024.
    • unused safety standards certificates must be returned by January 31, 2025.
  • Refunds will not be provided if unused annual inspection and semi-annual inspection forms and stickers are returned to the us beyond these dates.
  • Further questions or concerns about refunds may be directed to the MVIS program via telephone at 1-800-387-7736, via Fax at 905-704-2574, or via email at MVIS.CIVA@ontario.ca

Sincerely,

Jennifer Elliott

Director

DriveON Onboarding Q&A

Q1: I am a current light duty/passenger MVIS facility. What will I need when I apply to the DriveON program? 

A1: You will be able to apply to DriveON through the DriveON portal www.driveonportal.com on September 3, 2024. Information regarding the onboarding process can be found in the Program Enrolment Package on the DriveON portal. You can access the guide here at www.driveonportal.com.

Q2: I am a current MVIS facility that only conducts light-duty/passenger vehicle inspections. When do I need to onboard into the DriveON program by? 

A2: The current MVIS program will end on December 31, 2024. MVIS facilities will no longer be authorized by the ministry to perform these types of inspections under the MVIS program as of December 31, 2024. It is strongly recommended to complete enrolment and equipment purchase prior to November 1, 2024, to allow for your application to be processed and equipment shipped in time.

Q3: How do I apply for my complimentary inspection tablet? 

A3: Once an MVIS facility has completed their application to DriveON through the DriveON portal, tablet savings will be applied automatically to their equipment purchase order. No additional action will be required by the MVIS facility during the application process. 

Q4: Am I able to purchase another tablet in addition to my complimentary one? 

A4: Yes, MVIS facilities joining DriveON can purchase multiple tablets based on their operational needs. Additional tablets can be purchased individually or as part of additional packages. Facilities should be aware that the sale of all DriveON equipment is final and non-refundable.

Q5: I own an MVIS facility that performs safety inspections with two MVIS numbers. Do I get a free tablet for each MVIS number? 

A5: Yes. One complimentary tablet will be provided for each MVIS ID number per VIC application.

Q6: When can my technicians register with DriveON?

A6: Technicians can begin the registration process on the portal now at www.driveonportal.com. Once they have created their username and password, they can then start the mandatory online training available on the portal, which is free of charge and available 24/7. This can be done independent of the Vehicle Inspection Centre application process.

Q7: I am a current MVIS facility that only performs structural inspections. How will I know when I can apply to the DriveON program? 

A7: The ministry will communicate onboarding dates for MVIS facilities that only perform structural inspections at a later date. In the meantime, these MVIS facilities planning to apply to the DriveON program should review the Program Enrolment Package found at www.driveonportal.com to begin collecting the necessary documents for their DriveON application. 

Q8: I am a current VIC in the DriveON program that only performs emissions inspections. Am I eligible for a complimentary inspection tablet? 

A8: No, only currently licensed MVIS facilities that are onboarded into DriveON by the required dates are eligible to receive one complimentary inspection tablet.

Q9: Can a current MVIS facility add emissions capability to their VIC?

A9: Yes, MVIS facilities can add emissions inspection capability to their VICs during onboarding. If a current MVI, would also like to conduct DriveON Emissions inspections, they can indicate that in their onboarding application. The vendor will get back to you on the equipment delivery date based on a first come first serve basis.

Q10: I am a current MVIS facility – what if I don’t want to join the DriveON program? 

A10: MVIS facilities that only perform light duty/passenger vehicle inspections are encouraged to join the new DriveON program by December 31, 2024. After this date, no light-duty/passenger vehicle inspections can be performed under the MVIS program.

Q11: I am a current MVIS facility that performs heavy duty inspections. Can I still enroll in DriveON? 

A11: Yes, heavy duty MIVS facilities can still enrol in DriveON.  However, when enrolment opens to MVIS facilities that perform light duty/passenger vehicle inspections, they will be given priority.

August 2024

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THIS JUST IN ON THE MTO DIGITAL SAFETY PROJECT

We have just heard from the MTO about some updates for the timing on current MVIS facilities that only perform light duty/passenger vehicle safety inspections.

Information on light-duty / passenger safety MVIS stations and onboarding to DriveON will be released on August 19, 2024.

Onboarding is expected to follow with roll out on September 3, 2024.

Reminder – light duty/passenger vehicle inspections facilities will be eligible for one complimentary inspection tablet when onboarding is open to them.

Further information regarding the process on how to enrol in the DriveON program will be communicated by the DriveON vendor, Parsons Inc. Additional information can also be found on the DriveON portal at www.driveonportal.com.

If you have any questions about the new DriveON program, please contact the Vehicle Inspection Centre Assistance Line toll free at 1-833-420-2110 or by email at VIC@driveonportal.com.

The UCDA will continue to provide up to date information to members as we receive it.

 

Members Asked For Garage Registers

Members got them!

Do you like keeping a printed Garage Register? You are not alone, many of our members prefer that to keeping them electronically.

The UCDA offers printed Garage Register books, just like the ones MTO used to print, and authorized by the MTO, to members for $16 each, including shipping.

If you’d like one (or more) please contact Margi at m.muru@ucda.org or by calling 1-800-268-2598.

For those comfortable keeping such records electronically, a free option is offered by the MTO: Garage Register – Issued Pursuant to the Highway Traffic Act – Forms – Central Forms Repository (CFR) (beta) (gov.on.ca)

DIGITAL DEALER REGISTRATION UPDATE

Indian Status Cards

A “Certificate of Indian Status” card, issued by the Federal Government of Canada, Indigenous Services Canada, is the only form of identification acceptable to exempt a Status Indian from taxes on a vehicle sale or lease.

The holder of such a card only has to pay 5% on the purchase of a motor vehicle from a dealer if delivered at the dealership and will pay no tax ie. 0% if the vehicle is delivered by the dealer to an Indian Reserve.

The provincial portion of the H.S.T., which is 8%, is automatically exempt at the point of sale. This applies regardless of where the Status Indian actually lives.

This is what the cards look like, there are 4 kinds you might encounter:

Laminated Certificate of Indian Status

Certificate of Indian Status “All-in-One”

Certificate of Indian Status “Pilot Project”

Secure Certificate of Indian Status

For detailed rules please visit https://www.ucda.org/DealerInfo/StatusIndianFAQ.aspx or give our Legal Department a call anytime.

Métis and other such Aboriginal ID, membership or association cards are not issued by the Government of Canada and do not exempt the holder from paying H.S.T. on the purchase of a motor vehicle.

Auto Theft Progress

Update

While far from being solved, the auto theft problem seems to be easing for the first time in several years.

Media reports indicate auto theft is down 17% across Canada in the first 6 months of 2024, and the momentum is credited to ceaseless efforts throughout 2023 / 2024 by government and industry to tackle the crisis.

In Ontario, auto theft decreased by 14% while Quebec saw a 36% decline in stolen vehicles.

The Insurance Bureau of Canada paid around $1.5 billion in claims in 2023, a record high. That year, vehicle thefts rose by 50% in Quebec and almost as much in Ontario.

Insurers have said the majority of vehicles are being stolen from Ontario and Quebec and exported through the Port of Montreal.

Around 1.7 million containers moved through the port last year, including 70% of Canada’s legal vehicle exports, according to port authorities.

The federal government estimates 90,000 cars are stolen each year in Canada and many of the thefts involve connections to organized crime.

These are early days yet, but any kind of positive news on this front is a rare and welcome development. We hope to see further action on several fronts over the coming months.

The UCDA will continue its actions in this area. For more information on that, please visit https://tinyurl.com/4mssn34k.

See the full news article here: https://tinyurl.com/tyxycyrh.

Fraud in Auto Finance

Most of this article is based on information from a webinar put on by our Partner, National Bank, back in June.

Auto financing fraud is a growing concern, with fraud rates climbing and the tactics of con artists becoming increasingly sophisticated. The rise in fraud is not limited to the auto industry; it’s a trend that’s been observed across various sectors, including credit cards, deposit accounts, and telecommunications.

Higher fraud rates for auto financing have been noted in Western Canada, specifically in Vancouver and Calgary, as well as in Southern Ontario. The used car market specifically is experiencing higher rates of financial fraud, with some institutions reporting fraud rates of just over 1%.

Millennials, being credit active and more engaged online, are particularly vulnerable to fraud. Their high volume of credit activity and the sharing of personal information online make them prime targets.

To reduce the risk of fraud during vehicle sales, it is worthwhile for dealers to consider the following suggestions:

  • Be consistent with your process.
  • Verify the buyer’s identity using their driver’s license along with at least one other form of valid identification (preferably more).
  • Confirm that the id is valid, not expired.
  • Match the photo on the id to the individual.
  • Driver’s license should sound like metal when it’s dropped on a desk.
  • Train staff on how to carefully examine id ensuring it hasn’t been altered.
  • Watch for multiple fonts (Fraudulent identity will often have multiple)
  • Verify employment income by contacting the employers directly.
  • Approach transactions with new and out of town customers who demand immediate delivery with a heightened level of caution.

The battle against financing fraud requires awareness from both dealers and lending institutions. By understanding the trends, recognizing the red flags, and taking proactive steps for prevention, dealers can decrease the risks.

Dealer Plates

We still get complaints from members from time to time about incorrect enforcement by police in some areas with respect to the proper use of dealer plates, but these complaints are much more rare than they once were.

Personal Use

Personal use of dealer-owned “passenger-class” vehicles with dealer plates is absolutely legal but not on “commercial vehicles” (ie. cargo vans, ambulances etc.) where the cargo area is separate from the passenger compartment.

Dealer Plates may also be used on dealer-owned vehicles for all purposes related to the sale of the vehicle and this includes commercial vehicles.

Documents Needed!

The dealer plate is not restricted to use by the owner of the dealership. It may be used by anyone that has the permission of the dealership; that would include staff and potential buyers who have the vehicle for testing purposes.

Three documents must be with the vehicle whenever a dealer plate is used … not just when used for private purposes:

  1. a true copy (meaning a clear copy of the front and back) of the permit for the dealer plate
  2. the Insurance certificate (pink slip)
  3. * a true copy of the vehicle permit.

* If the vehicle has recently been purchased, a copy of the Bill of Sale may be accepted by the police.

Please call the UCDA if you would like a handy wallet card you can show the police if you are stopped and asked about your use of the Dealer Plate.

Newer Developments

As of January 1, 2021:

  • Dealer plates can be used on a light-duty commercial vehicle (ie. Pickup Trucks), that is part of a dealer’s inventory of motor vehicles and that is “loaded with goods” of a private nature, for private use, provided the manufacturer’s Gross Vehicle Weight Rating of the pickup truck does not exceed 3,400 kg (Reg 628). Pickup trucks displaying Dealer plates while being operated for private use may not tow another vehicle.

The MTO has also issued communications to the enforcement community to clarify that the current Dealer plate regulations support using a Dealer plate in the following situations:

  • On a used motor vehicle being transported from auction with no vehicle registration permit, and
  • While transporting a new unregistered motor vehicle where only the New Vehicle Information Statement (NVIS) is present.

As always, if you are charged in circumstances you do not believe to be fair or accurate just give us a call at 416-231-2600 or 1-800-268- 2598. We have helpful documents you can show the crown prosecutor or the judge.

Simplicity: KYCS Vehicle Locate Product

KYCS Locate offers a theft recovery solution for dealerships. The selfpowered waterproof device is simple to install. Installation does not require installers to cut into the wiring of the vehicle. Since no wiring is disturbed during the installation, dealers and consumer don’t have to worry about the manufacturer’s warranty being voided. It can also be used to secure heavy equipment, RVs, powersports and trailers.

KYCS has no monthly subscription fee, offering consumers a costeffective solution. KYCS Locate is virtually undetectable by thieves and the device lasts for 5 years. If a consumer’s vehicle is stolen, KYCS Locate is switched into recovery mode, which means that the vehicle can be monitored and provide law enforcement the information they require. These features lead to a higher probability of the vehicle being recovered.

KYCS offers multiple F&I and inventory protection models tailored for dealerships. It includes geofencing capabilities, creating a virtual boundary around your lot.

If your dealership is interested in exploring KYCS Locate, please contact the UCDA or Jay Lyall jlyall@kycs.ca.

www.KYCS.ca

Selling a High Theft Rate Vehicle… It May Be a Material Fact

It’s no secret. There is an auto theft epidemic across the country and Ontario is at the center of it.

This news comes as no surprise to anyone who has recently looked at his or her auto insurance bill. Insurance companies have begun to introduce additional surcharges for some of the most stolen vehicles across the country.

CAA, for example, recently announced that it would be requiring a $1,500 surcharge on a list of vehicles, see below, (2020 or newer):

  • Chevrolet Suburban and Tahoe;
  • GMC Yukon;
  • Land Rover Defender;
  • Range Rover (including Sport, Evoque, Velar);
  • Lexus GX 460, RX 450, RX 350;
  • Toyota 4Runner;
  • Highlander (including Grand Highlander);
  • Acura RDX;
  • Dodge RAM 1500;
  • Jeep Wrangler; or
  • Any vehicle with MSRP of $125,000 or higher (excluding electric vehicles).

CAA will reduce or eliminate this surcharge if owners take certain safety precautions with their vehicle:

  • To have the entire surcharge removed, owners must install an aftermarket immobilizer
  • Owners who install other aftermarket immobilizers, or cut-off systems such as engine wire kill switch, fuse box kill switch, remote or car battery kill switch, fuel cut-off or any two factor authentication system (needs a PIN to start), will be eligible for a removal of the charge upon providing proof of purchase and installation
  • In order to reduce the surcharge to $500, owners can use a steering wheel lock, a brake pedal lock, a wheel and tire lock, keyfob signal blocking (excluding Farady devices) or retractable bollards

CAA is not alone in its introduction of this surcharge. Insurers such as Economical/Definity, Chubb Insurance, and Aviva have introduced similar systems.

This insurance surcharge also has implications for dealers when they are selling vehicles. As UCDA members are well aware, dealers are required to disclose all material facts regarding a vehicle to their customers.

A material fact is any information that may affect the customer’s decision to purchase or lease a vehicle. Whether a vehicle is a high-target for theft, that carries an insurance surcharge, is arguably a material fact requiring disclosure. Disclose this in writing on your bill of sale to avoid controversy in future.

While dealers may be required to disclose whether a vehicle is on the list of most stolen vehicles, dealers should not allow this to cost them sales. Instead, dealers and salespeople may want to use this conversation surrounding auto theft as an opportunity.

If your dealership works with an anti-theft device company or an insurance company that provides a discount for car owners who install anti-theft devices, this may be the perfect opportunity for the dealership to try to sell the customer on these products.

Dealers should keep in mind that while they can provide the customer the choice to purchase these products, they should not force customers to purchase an insurance policy or anti-theft device as part of the sale of a vehicle. That is tied selling and is illegal.

Consumers are not the only ones who can enjoy insurance savings for the use of anti-theft protection. Dealers who are on Baird MacGregor’s UCDA Insurance program already enjoy a 5% discount on their insurance premium if they are set up with KYCS ‘Locate Lot Protection & Vehicle Recovery Plan’ or the Silent Sentinel Vehicle Anti-Theft Protection Plan—for a total savings of 10% if they use both products!

Members interested in applying for Baird MacGregor’s UCDA Insurance program can inquire about the application process by calling the main telephone line at (416) 231-2600.

UCDA Social Media

Revving Our Online Presence: The Power of Social Media for Dealers in Ontario

Social media provides a space where dealers can engage with their community, and share insights.

The UCDA’s embrace of social media is more than just keeping up with the times; it’s about creating a community. Through platforms like Facebook, Instagram, Twitter and LinkedIn, we can share Dealer Alerts, important news stories and fun pieces.

For the UCDA, social media is also a means of advocacy and education. By highlighting the benefits of purchasing from a reputable dealer, the UCDA reinforces the value proposition of its members. The advocacy is not only to shine a light on the value to consumers but also so members can be kept up to date with proposed regulations, and other important changes in the industry.

You can find the UCDA on Facebook, Instagram, Twitter, and LinkedIn. Please follow to find more current information.

https://www.facebook.com/UCDAOntario/

https://www.instagram.com/theucda/

https://twitter.com/UCDAOntario

https://www.linkedin.com/company/used-car-dealers-association-of-ontario/

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