Category: Dealer Alerts

In partnership with DesRosiers Automotive Consultants (DAC), the UCDA reached out to hundreds of members to get a better understanding of trends in the automotive industry. Here is a snap shot of the first half of 2025.

Vehicle Sales in 2024 and Anticipated Sales in 2025

Overall, franchised dealers expect to sell slightly more used cars in 2025 than they did in 2024 while independent dealers, expect to sell slightly less.

Sourcing Vehicles

New and used car dealers continue to find it difficult to source used vehicles, even more so than the last 6 months of 2024.

Most franchised new dealers source their used vehicles from customer sales or trade-ins, while most independent used car dealers buy their vehicles at auctions or wholesale.

Paying for Used Vehicles

Most customers are approaching independent used car dealers with cash in hand or funding from their own sources. Customers of new car dealers are purchasing used vehicles through loans arranged at the dealership.

Prices

For both new and independent dealers, there seems to be some softening in prices for used vehicles, particularly cars. This was expected due to the tariff effect.

Interest in Used Electric Vehicles (BEVs and PHEVs)

Consumers continue to be slow to buy used electric vehicles. Franchised dealers sold more hybrids (PHEV) than full electric (BEV), while independent dealers moved few of either.

Tariffs

One of the more interesting take-aways from the survey is that tariffs have yet to really bite into exports to the U.S., with independent dealers even more bullish than franchised dealers in this area. There has been some weakening, but nothing like what was expected early on. This may have to do with the fact that the U.S. have not really started assessing non-U.S. parts in used vehicle exports at the border as of yet.

You can read the full survey here:

Dealers are required to close on Labour Day, Monday, September 1^st, unless your local municipality has passed a by-law exempting retail businesses from the requirement to close on statutory holidays. If in doubt, check with your local municipality’s by-law department.

All dealers may be open on Saturday, August 30^th and on Sunday, August 31^st, if they wish.

The UCDA search facility will be closed on Labour Day, but will be available from 9:00 a.m. to 5:00 p.m. on Saturday, August 30^th and will re-open from 9:00 a.m. to 8:00 p.m., as usual, on Tuesday, September 2^nd.

Of course, on-line searches are available throughout the holiday weekend at:

www.ucdasearches.com

We are sorry to report, despite weeks of lobbying efforts by the UCDA, the Ministry of Public and Business Service Delivery and Procurement has finally indicated they do not intend to delay or cancel the OMVIC fee increase on September 1st.

While we have made modest progress with the Ministry in other areas, which we will report on in our next Front Line newsletter, this remains a bitter disappointment for our members.

While the increase of the transaction tax from $12.50 to $22 on Sept. 1^st, will bring millions more into OMVIC’s coffers, it remains unclear how this will benefit dealers who fund OMVIC or the consumers they sell vehicles to. It will certainly cost everyone more.

At a time of great economic uncertainty, tariffs, and spiraling costs, this is one of the most tone-deaf moves we have seen in many years.

Tellingly, the Ministry advises, of the 8,000 dealers invited to comment on the OMVIC proposal, only 200 took the opportunity to do so.

Wednesday, August 13th – 11am EST

Sign Up Here:

https://solution.trustii.co/mnp-trustii-ucda

Put the Brakes on Identity Fraud!

New FINTRAC regulations and Bank-mandated ID verifications are raising the stakes for dealerships.

Join industry experts for a free session on protecting your business.

In this one-hour webinar, you’ll learn about FINTRAC’s new requirements, how they impact your operations and how to protect your dealership from fraud with industry experts MNP, UCDA and TRUSTii.

Wednesday, August 13th – 11am EST

The UCDA continues to receive calls from dealers who have released vehicles to purchasing consumers who have financed their purchases through OCM Auto Financing Group Ltd. (“OCM”)

https://ocmcorporation.com/

OCM appear to continue to delay payment to these dealers. We started receiving these complaints as far back as November, 2024. We sent a Dealer Alert in March on this subject and we repeat the message now.

If you are considering selling a vehicle to a consumer who is financing their purchase with or through OCM:

Do not release the vehicle to the consumer until you are paid.

The UCDA has always advised dealers not to deliver financed vehicles to consumers until you have the funds in your account, but we realize this is not always practical.  In such cases obtain assurance, in writing, BEFORE you deliver the vehicle as to how long you can expect to wait to receive funding and then make your decision accordingly. 

For dealers who have already released their vehicle and have yet to be paid, and despite attempts to get OCM to advance funding, remain unpaid, your options are to retain legal counsel, and get advice as to registering a lien on the vehicle, possibly repossessing it from the consumer or taking legal action.

It is also good practice to explain the situation to the consumer prior to any action so they understand the circumstances and they might be able to talk to OCM as well to avoid the need for further steps.

Following our Dealer Alert on the 8^th, and our social media posts, dealer response has been dramatic. Dealers say enough is enough. It’s time to say NO to OMVIC’s outrageous fee increases. Dealers simply can’t afford OMVIC.

With OMVIC salaries and Board benefits eating up almost of 90% of OMVIC revenue, who could?

With pressures on dealers from all sides – Trump’s Tariffs, FINTRAC, inflation and lack of inventory – OMVIC thinks now would be a good time to slap more fee increases on dealers.

TRANSACTION TAX INCREASES – From $12.50 in 2024, OMVIC now want $22 for every vehicle you sell to a consumer. This to come into effect on September 1, 2025, generating millions for OMVIC out of consumer and dealer pockets. 

FEE INCREASES – Following huge fee increases in 2024, OMVIC now plan more fee increases effective September 1, 2025. 

LATE FEE INCREASES – From $0, dealers now pay $300 and salespeople $150 as of Feb. 1, 2025. 

MANDATORY EDUCATION COSTS COMING IN 2026 – We still don’t know what those costs will be because, despite asking, they have still not told us.

It’s high time for OMVIC to get their fiscal house in order. It might be time for the Ontario Government to consider some other way to fund OMVIC operations.

WAKE UP DEALERS and let your voices be heard! If you need help with a letter, we drafted one for you here: https://www.ucda.org/omvic-transaction-fee/

Contact your MPP: https://www.ola.org/en/members/current

Contact Premier Doug Ford: https://correspondence.premier.gov.on.ca/EN/feedback/default.aspx; https://fordmpp.ca/contact/

Contact the Minister of Public and Business Service Delivery and Procurement, The Hon. Stephen Crawford; InfoMPBSDP@ontario.ca

Contact OMVIC; chair@omvic.on.ca

Formal submissions have been invited to be made on this proposal here:

https://form.jotform.com/251167655541257

By Friday, June 6, 2025 at 5 p.m.

Dealers are required to be closed on Victoria Day, Monday, May 19th, unless located in a tourist area as designated by their local municipality.

The UCDA search offices will be closed on Victoria Day, but open regular hours, 9:00 a.m. to 5:00 p.m. on Saturday, May 17th and resuming normal operations on Tuesday, May 20th.

Of course, members will also be able to access UCDA online services throughout the long weekend at:

www.ucdasearches.com

You will have received an OMVIC Bulletin recently with a message repeated with depressing regularity lately … OMVIC want more of your money … again.

We say enough is enough. It’s time to say NO.

Dealers simply can’t afford OMVIC.

With OMVIC salaries and Board benefits eating up almost of 90% of OMVIC revenue, who could?

With pressures on dealers from all sides – Trump’s Tariffs, the Feds FINTRAC nonsense, inflation and lack of inventory – OMVIC thinks now would be a good time to slap more fee increases on dealers.

TRANSACTION TAX INCREASES

Hot on the increase from $10 to $12.50 in 2024, OMVIC now want $22 for every vehicle you sell to a consumer. This to come into effect on September 1, 2025, unless we can stop it.

FEE INCREASES

Following across the board fee increases by as much as 75% in 2024, OMVIC now plan more fee increases to every fee category from renewals to branch applications, once again effective September 1, 2025.

LATE FEE INCREASES

From $0, dealers now pay $300 and salespeople $150 as of Feb. 1, 2025.

MANDATORY EDUCATION COSTS COMING IN 2026

We still don’t know what those costs will be because, despite asking, they have still not told us.

OMVIC say they need more money, from dealers, their only source of funds.

Why?

Well, in 2022 OMVIC had about 140 employees. By 2026 they plan to have 180 of them. You do the math.

New car dealer franchises and groups will find this eats into their bottom line, but for smaller one-person or mom and pop dealerships, these costs, fees and expenses might very well spell the end of their businesses. Many new Canadians will have to find another path to the Canadian dream.

Consumers will all pay more too, for sure. Where does all this money go? With an abysmal Google Rating below 2, it seems neither registrants nor consumers are happy with OMVIC. Everyone but OMVIC loses, as they build their Empire bigger. Do they really need the population of a small Ontario town to do their job?

If these ‘death by a thousand fee increases’ continue, OMVIC won’t have a an industry to regulate; they will all be curbsiders.

What OMVIC needs is some serious belt-tightening. It’s high time for OMVIC to get their fiscal house in order. We call on them to have an open and honest third party audit to appraise where efficiencies might be found to cut some fat before they ask dealers for another dime.

We asked OMVIC to agree to this, they refused. So now we look for the means to FORCE THEM TO. Political means.

We will hope for a better outcome this time around.

It might be time for the Ontario Government to consider some other way to fund OMVIC operations. Perhaps the public purse should pay for consumer protection, because there is a limit to how much dealers can be expected to bear.

While the UCDA, has, and will continue to communicate concerns to the Premier and the Minister, one effective way to bring YOUR concerns about excessive OMVIC fees is for YOU to write to YOUR MPP, the Minister, the Premier – and to meet with YOUR local MPPs to brief them on the impact of these fees on YOUR operations, especially in light of current economic uncertainty.

WAKE UP DEALERS and let your voices be heard! If you need help with a letter, we drafted one for you here: https://www.ucda.org/omvic-transaction-fee/

Contact your MPP:

https://www.ola.org/en/members/current

Contact Premier Doug Ford:

https://correspondence.premier.gov.on.ca/EN/feedback/default.aspx

https://fordmpp.ca/contact/

Contact the Minister of Public and Business Service Delivery and Procurement

The Hon. Stephen Crawford

InfoMPBSDP@ontario.ca

Contact OMVIC

chair@omvic.on.ca