The Motor Vehicle Dealers Act (MVDA) has 22 explicit requirements for disclosure.
What is a disclosure?
A disclosure is a fact or detail about the motor vehicle related to a its past use, history or condition.
Who must provide these disclosures to the purchaser?
Salespeople and dealers are required by law to provide these disclosures related to the past use, history and condition of the vehicle.
How does the salesperson or dealer provide these required disclosures?
A vehicle contract must include written statements about any of the following conditions.
- The make, model, trim level and model year of the vehicle.
- If the vehicle has been used as a taxi, limousine, police or emergency vehicle.
- If the vehicle has been leased (rented) on a daily basis and has not been subsequently owned by someone other than a dealer.
- If any collision or incident damage to the vehicle was greater than $3,000 (and the total cost of repair if known by the dealer).
- If the vehicle has been classified under the Highway Traffic Act as irreparable, salvage or rebuilt, or was declared a total loss by an insurer.
- If the vehicle has two or more adjacent panels that are not bumper panels that have been replaced.
- If the manufacturer’s warranty on the vehicle has been cancelled.
- If the vehicle has sustained any damage caused by fire.
- If the vehicle has sustained any damage caused by immersion in liquid that has penetrated to the level of at least the interior floor boards.
- If there has been structural damage or if the vehicle has had repairs, replacements or alterations to the structure of the vehicle.
- If the vehicle has an anti-lock braking system that is not operational.
- If any of the vehicle’s airbags are missing or not operational.
- If the vehicle requires repair to any of the following:
- Engine, transmission or power train.
- Subframe or suspension.
- Computer equipment.
- Electrical system.
- Fuel operation system.
- Air conditioning.
- If the contract is for the sale or lease of a specifically identified new motor vehicle (e.g., VIN is known, in stock, etc.), the maximum distance that will be shown on the odometer at time of delivery.
- If the contract does not specifically identify a new vehicle (e.g., a vehicle which must be located, VIN unknown), the maximum distance that will be shown on the odometer at the time of delivery or a statement initialed by the buyer that there is no maximum.
- If the contract is for the sale or lease of a used vehicle:
- The total distance driven.
- If the dealer cannot determine the total distance the vehicle has been driven, but can determine a distance the vehicle has been driven as of some past date, that distance and date, together with a statement that “the total distance the vehicle has been driven is believed to be higher.”
- If the dealer is unable to make any type of determination as to total distance driven or as to distance driven from a past date, that “the total distance driven is unknown and may be substantially higher than the reading shown on the odometer.”
- If the vehicle’s odometer is broken or faulty, has been replaced or rolled back, or is in miles.
- If the vehicle is materially different from its original or advertised production specifications.
- If the badge or any other indication on the vehicle relates to a different vehicle model.
- If the vehicle was previously registered in a jurisdiction other than Ontario, and if so, a statement indicating which jurisdictions. This requirement does not apply if the vehicle has since been registered in Ontario for more than seven years.
- If the vehicle was recovered subsequent to being reported stolen.
- A statement of any other facts that could be expected to influence the decision of a reasonable buyer or lessee to purchase or lease the vehicle on the terms disclosed in the contract.