Hot News - February 1999

Change in Dealer Transfer Process - Effective February 1, 1999

The Ministry of Finance, Ministry of Transportation and the Ontario Motor Vehicle Industry Council (OMVIC) have co-operated to develop changes to the dealer transfer process which address fraudulent vehicle transfers by curbsiders and other individuals who misrepresent themselves as motor vehicle dealers.

As a result, effective February 1.1999, upon your first visit to any Driver and Vehicle Licence Issuing Office, any dealer representative requesting a dealer transfer must present the following documents:

1. Dealer Authorization Letter which must:

   • include the current date;
   • include the dealer's legal name, trade name, business address, telephone number and dealer number;
   • identify the names of the persons who are authorized to present dealer transfers on behalf of the dealer;
   • include the signature and printed name of the sole proprietor, one partner or one signing officer of a corporation.

   A sample Dxealer Authorization Letter is on the reverse.

2. Copy of signed OMVIC Dealer Pocket Certificate.

3. Photo Driver’s Licence as identification confirming that the person named in the Dealer Authorization Letter is the same person presenting the transfer. If photo Driver’s Licence is not available, two other signed pieces of identification are required.

The original Dealer Authorization Letter and copy of the signed OMVIC Dealer Pocket Certificate will be retained on file at the Issuing Office and updated by the Dealer if any of the above information changes.

After the initial filing of the original Dealer Authorization Letter and copy of the signed OMVIC Dealer Pocket Certificate, all dealer representatives requesting dealer transfers must carry identification as noted in 3. above to produce to the Issuer if requested.

All dealers must have both a valid Ontario Retail Sales Tax Vendor Permit and an active Motor Vehicle Dealer Registration in the same legal name.

A dealer transfer will only be initiated if the dealer representative requesting the transfer has provided the required documentation, is authorized by the dealer in a Dealer Authorization Letter and presented appropriate identification when requested. A purchaser may still attend to request a dealer transfer providing a valid Bill of Sale is presented, the vehicle is registered in the name of the selling dealer and the selling dealer has both a valid Ontario Retail Sales Tax Vendor Permit and an active Motor Vehicle Dealer Registration.

Also effective February 1.1999 the Selling Dealer Number must be recorded directly above the "signature of seller" in the Application for Transfer section of the Vehicle Permit. The Buying Dealer Number will continue to be recorded in the "Motor Veh. Dealer No." section.

All dealer transfers of used vehicles must be going to or from the Dealer's name. For registration of new vehicles, the name and dealer number of the Selling Dealer must be recorded on the New Vehicle Information Statement (NVIS).

Over the past few years, there have been growing concerns in the Ontario government with tax evasion and revenue losses as a result of the underground economy. In the 1998 Ontario Budget, the Minister of Finance announced a number of initiatives targeted at this problem, including a plan to modify the motor vehicle transfer system to ensure that sales of all motor vehicles, whether new or used, are accurately recorded and that retail sales tax is properly collected.

Our intent in implementing these requirements is to stop vehicle transfers by unauthorized persons and not to inconvenience valid dealers or their runners.

If you have any questions relating to your Ontario Retail Sales Tax Vendor Permit, please contact your local Retail Sales Tax Office. Telephone numbers are listed under Ministry of Finance in the blue pages of your local telephone book.

If you have any questions relating to your Dealer Registration or wish to confirm another Dealer’s Registration, please contact the Ontario Motor Vehicle Industry Council (OMVIC) at 1-800-943-6002 or 416-226-4500.