The following applies when a dealer sells or leases a vehicle and the buyer or lessee trades in a vehicle to the dealer (or to another registered dealer). If the selling or leasing dealer receives the trade-in, this dealer must ensure the sale or lease contract includes in a clear, comprehensible and prominent manner the information set out below.
If another registered dealer receives the vehicle being traded in, then that dealer is responsible for ensuring the trade-in contract includes in a clear, comprehensible and prominent manner the information set out below:
- The name and address of the owner of the traded-in vehicle.
- Dealer’s registration number and registered name (and legal name if different from registered name).
- Salesperson’s registration number and name.
- Date of trade-in, if known, or manner of determining date, if known.
- Make, model, trim level, model year, colour, Vehicle Identification Number (VIN) and body type of the trade-in vehicle.
- The credit for the trade-in (or the amount paid for the vehicle by the dealer if another registered dealer receives the actual vehicle).
- A statement from the person trading in the vehicle of the “additional information in contracts of sale and leases” found in Section 42 of the Ontario Regulations under the MVDA (i.e., disclosure of previous uses, vehicle history, quality, condition, etc.).
- Recorded odometer reading.
- Condition of the vehicle.
- If the dealer receiving the vehicle agrees to pay any outstanding loan or outstanding repair or storage bill, a statement to that effect.
Note: If the contract provides for the trade-in of more than one vehicle, the information required must be shown separately for each vehicle.