- Who needs to be registered as a motor vehicle dealer?
- How do I get registered as a motor vehicle dealer?
- Getting and Maintaining Registration
- Certification/Education Requirements
- Preconditions to Registration as a Dealer
- Fees
- Eligibility for Registration
Who
needs to be registered as a motor
vehicle dealer?
Anyone who is
in the business of trading in
motor vehicles, whether for their
own account or the account of any
other individual or business, or
who holds themselves out as
trading in motor vehicles.
"Trading" includes buying,
selling, leasing, advertising or
exchanging an interest in a motor
vehicle or negotiating or
inducing or attempting to induce
the buying, selling, leasing or
exchanging of an interest in a
motor vehicle.
How do
I get registered as a motor
vehicle dealer?
You need to
submit an application to OMVIC
and have it approved. Once
registered, you will receive a
certificate of registration from
OMVIC.
Getting
and Maintaining Registration
Classes of
Registration
Every
registered dealer is assigned to
a particular class of
registration. There are different
requirements depending on what
class of registration you choose.
These requirements are explained
in the OMVIC Certification Course
and in the
Business Application
form. The following is a brief
description of the classes of
registration most often selected
by registered dealers. If none of
the classes described below fit
your business, please contact
OMVIC.
-
General
Dealer (new and used
motor vehicles) - A business
which buys, sells or leases both
new and used vehicles. If you are
not an OADA/TADA member, you will
need to provide evidence of an
existing motor vehicle
manufacturer sales and service
agreement in order to be assigned
to this class. For the purpose of
the Motor Vehicle Dealers Act
("the Act") a vehicle is not
considered a new vehicle if a
permit has been issued under
Section 7 of the Highway Traffic
Act or by another jurisdiction
having an equivalent requirement.
There is an exception if a permit
has been issued to a customer who
has returned the vehicle within
14 days.
-
General
Dealer (used motor
vehicles) - A business which
trades only in used vehicles.
This class will generally
apply to any dealer who is
not a new car dealer and who
does not fit into one of the
classes described below.
-
Wholesaler
- A business which selles
vehicles exclusively to other
registered dealers and
acquires vehicles only from
registered dealers or
people/organizations who are
exempt from registration
under the Regulations.
Wholesalers cannot trade with
consumers. Wholesalers can do
business with dealers who
have an equivalent
registration or licence in a
jurisdiction outside of
Ontario. Dealers in the
wholesaler class cannot be
involved in leasing vehicles.
The
following are more restrictive
classes of registration:
-
Exporter - A business
which purchases motor vehicles
only for the purpose of export
outside Ontario.
-
Broker
- A business which facilitates a
vehicle trade on behalf of
non-dealers where the broker
doesn't own the vehicle or accept
payment towards the vehicle. A
dealer in this class cannot be
affiliated with any other
registered dealer.
Certification/Education
Requirements
Designated
individuals within the dealership
may be required to complete the
OMVIC Certification Course as a
precondition to your dealership
registration being granted or
renewed as follows:
The person in
charge (i.e. the person who
has been assigned primary
responsibility for and has agreed
to be accountable for compliance
with the Act and its Regulations)
will need to:
-
Have been
the person in charge of any
dealership since January 1,
2007 OR
-
Have
completed the OMVIC
Certification Course since
January 1,
2009
If the person
in charge is not an officer,
director, partner or the sole
proprietor, then
at least one
of these individuals (i.e.
not all of them) will need
to:
-
Have been
the person in charge of any
dealership since January 1,
2007 OR
-
Have
completed the OMVIC
Certification Course since
January 1,
2009
Click here for more information about the Automotive Certification Course
Preconditions to Registration as
a Dealer
OMVIC will not
grant or renew registration to a
dealer unless the following
preconditions have been met:
- the required fee is paid
(see "Fees" section)
- the applicant is at
least 18 years of age
- the applicant has not be
refused or revoked by OMVIC
within the last two years
- neither the applicant
nor any interested or
associated persons are in
default with the Ministry of
Revenue or the Motor Vehicle
Dealers Compensation Fund
- identified persons have
completed the OMVIC
Certification Course (see
"Certification/Education
Requirements" for details)
Fees
For a new or
reinstatement application as a
dealer, the application fee is
$500. There is
an annual renewal fee of
$250. There is also a
transaction fee program whereby
dealers are required to remit $5
to OMVIC for every sale,
lease, fleet or "as is"
transaction
on a per vehicle basis
as a component of their renewal
fee, except for transactions with
other dealers.
Please click here to review the Transaction Fee FAQ document.
New or reinstating dealers in the
General or Broker class are
required to attach a seperate
document payment by certified
cheque or money order in the
amount of $339
payable to the "Motor Vehicle
Dealers Compensation Fund".
Eligibility
for Registration
Once you
satisfy the preconditions to
registration, you are entitled to
be registered as a motor vehicle
dealer unless the Registrar has
reasonable grounds, based on your
past conduct or the past conduct
of an interested or associated
person, to believe you will not
conduct business with honesty,
integrity, financial
responsibility and in compliance
with the law. OMVIC will conduct
a number of background checks in
connection with your application
to determine whether you meet the
eligibility test. Please see the
back of your Business Application
form for more information about
the interested and associated
persons.
Getting
registered as a motor vehicle
dealer for the first time
You will be
required to complete and return
to OMVIC the Business Application
and related Individual
Application and Salesperson
Change Notices together with the
appropriate fee. Detailed
information about registration
requirements are on the back of
the application form. Please
note, these applications must be
submitted in person or by
mail.
Click here to download the New Dealer Registration Kit
Reinstating
a previous registration as a
motor vehicle dealer
If your
corporation, partnership or sole
proprietorship has been
previously registered as a dealer
and has been inactive for less
than 60 days, you may be
eligible to submit a renewal
application to have your
registration reinstated. Please
contact OMVIC for further
information. If you have been
inactive for over 60 days, you
will be required to submit the
same application as a first time
applicant. See "Getting
Registered" (above) for
details.
Renewing a
current registration as a motor
vehicle dealer
As a courtesy,
OMVIC will send a business
renewal application to your
business or mailing address
(where applicable) approximately
60 to 90 days before your
registration is due to expire.
This is a courtesy only.
As a dealer, you are responsible
for ensuring your registration is
current, regardless of whether or
not you receive the business
renewal application from
OMVIC. If you have not received
your business renewal
application within 30 days of
your expiry, please contact OMVIC
to have another form sent to you.
Making
changes to a current registration
as a motor vehicle dealer
The Act
requires every registrant to
notify OMVIC, in
writing within five days,
or any changes to the information
you provide for the purpose of
obtaining registration. This
includes all of your general and
contact information,
person-in-charge, officers,
directors, signing officers on
the bank and trust account,
answers to the eligibility
questions (i.e. convictions,
charges, bankruptcies,
judgements, collection accounts
etc.) and your business
plan.
Note: Please
retain a copy of every
application or documents you send
to OMVIC regarding your
registration so you can advise
OMVIC of any changes. OMVIC has
special forms for some of the
most common changes as follows.
Changing
your business (trade) name or
legal name
If you are
changing your legal name, you may
need to submit a new application.
Please
contact OMVIC to confirm
the type of application required
in your specific case. If you are
changing your business (trade)
name, kindly complete and submit
the Business Change Notice - Name
or Address form. There is no fee
to submit this form. Please
review the form including the
information on the reverse for
details of how to change your
business (trade) name or legal
name.
Click here to download the
Business Change - Name or Address
form
Changing
your business or mailing address
The Act
provides that you must operate
your dealership from a location
that is approved by OMVIC. Your
approved location is the business
address on your OMVIC
wall certificate. If you want to
see OMVIC's approval for a new
location from which to operate
your dealership, kindly complete
and submit the Business Change
Notice - Name or Address form.
There is no fee to submit this
form. This form can also be used
to request approval for an
alternate mailing address. Please
review the form including the
information on the reverse for
details of how to change your
business or mailing address.
Click here to download the
Business Change - Name or Address
form
Adding or
removing individuals associated
with your dealership
You are
required to provide OMVIC with
up-to-date information about the
officers, directors, partners,
shareholders, signing officers on
your bank or trust account (where
applicable) and any other
individuals who are designated
with signing authority on behalf
of the dealership. If there are
any changes to these individuals,
please complete and submit the
Business Change Notice -
Individual form. This form
should not be used to advise
OMVIC of salesperson changes.
There is no fee to submit this
form. Please review this form
including the information on the
reverse for details of how to
submit changes to individuals
associated with the dealership.
For salesperson changes, please
refer to "Getting and Maintaining
Registration as a Salesperson" for further information.
Click here for more information
about Getting and Maintaining
Registration as a Salesperson
Click here to download the
Business Change - Individual form
Adding a
new (branch) location to your
dealership
The Act
provides that you must operate
your dealership from a location
that is approved by OMVIC. If you
would like to request
OMVIC's approval for an
additional location from which to
operate your dealership, kindly
complete and submit a Branch
Application form. There is a $250
fee for a Branch Application.
Please review this form and the
information on the reverse for
details on how to get your branch
location approved.
Click here to download the
Branch Application form
Storing
your books and records at an
alternate address
Dealers must
obtain OMVIC's approval before
storing their books and records
at any other location besides the
business address showing on their
registration certificate. Dealers
registered in the wholesale or
broker class may be approved to
store their records from an
alternate location by completing
and submitting the Request for
Records Storage Address form.
There is no fee to request
approval of a records storage
address. Please review the form
including the information on the
reverse for detail of how to get
a records storage address
approved. Dealers not registered
as Wholesalers or Brokers will be
expected to have their records
stored at their business address.
Click here to download the
Request for Records Storage
Address form
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