Only registered dealers and dealers registered in another jurisdiction are permitted to purchase vehicles at wholesale auctions.
If an auction is conducted where bidders are physically present, the bidding area is restricted to registered dealers, OMVIC staff, law enforcement personnel, directors or officers of the auction or those in their company, and employees or agents of the sellers.
Everyone in the bidding area must wear visible photo ID. Only registrants or out-of-province dealers who have registered with OMVIC are permitted to bid. Non-registrants in the bidding area cannot be there for the purpose of acquiring a vehicle.
Wholesale auctions can also require further documentation and information from a dealer wishing to register to obtain an auction card. The auction card is required to be presented by the registered person in order to enter and access the bidding area of the auction. The information could include:
- Dealer HST registration
- Dealer Vendor Permit (HST)
- Trade and credit references
- Proof of insurance
- Copy of other auction cards
If access is available to an auction online or electronically, it must be conducted in a secure manner so that only registrants or registered dealers in other jurisdictions may gain access.
Dealers may not allow a customer to “shoulder surf ” an online auction, participating in the auction surreptitiously.
It is an offence for a registrant to facilitate access to a wholesale auction, regardless of whether the auction is conducted in person or over the Internet.
Persons and their employees and agents who conduct an auction of motor vehicles (known as wholesale auctions) are exempt from the requirement of registration as a motor vehicle dealer pursuant to MVDA if they satisfy the following conditions:
- That they have no property interest in any of the motor vehicles being sold.
- That vehicles sold are owned by a motor vehicle dealer or a person exempt from registration requirements of the MVDA.
- That the sale of vehicles is only to registered motor vehicle dealers.
- That best efforts be made to ensure that disclosure required by the Code of Ethics Regulations of the MVDA regulations has been made.
- That access to the auction is limited to registrants.