Follow Us:

Share:

Classes of Dealers

A dealer who registered in one of the following classes cannot be registered in any other class:

  1. One only of:
    1. General Dealer – new and used vehicles
    2. General Dealer – used vehicles
    3. Broker
    4. Outside Ontario Dealer
    5. Wholesaler
    6. Exporter

    Description of a "class":

    General Dealer (new and used subclass): A business which trades in both new and used vehicles. If the dealer is not an OADA/TADA member, the dealer will need to provide a copy of the sales and service agreement in order to be assigned to this class.

    General Dealer (used subclass): 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 any of the other classes.

    Broker: A business which facilitates (including advertising) the trade of a vehicle on behalf of a non-dealer, where the broker does not own the vehicle, take possession of the vehicle, or accept or handle the funds used to pay for the vehicle.

    Outside Ontario Dealer: A dealer properly registered outside Ontario who purchases vehicles from exempt wholesale auctions for the purpose of exporting them to the jurisdiction in which the dealer is registered.

    Wholesaler: Buys, sells or trades vehicles exclusively with other registered dealers. Wholesalers can do business with dealers who have an equivalent registration or licence in a jurisdiction outside Ontario.

    Exporter: Acts (or advertises) only to buy vehicles for export outside Ontario.

    Lease Finance Dealer: Reg.24.(1) A motor vehicle dealer registered as a Lease Finance Dealer shall not be associated, as described in subsection 1(2) of the Act, with a motor vehicle dealer registered as a General Dealer, unless the association is the result of the Lease Finance Dealer and the General Dealer both being associated with the same person who is exempt from the Act and the regulations as a result of paragraph 21 of subsection 2(1). O.Reg.333/08, s.24(1). Reg.24.(2) A motor vehicle dealer registered as a Lease Finance Dealer shall not act as a motor vehicle dealer, other than:

    1. to buy motor vehicles;
    2. to lease a motor vehicle to a lessee if:
      1. the lease is made through a motor vehicle dealer registered as a General Dealer; and
      2. the lease is for a term of at least 120 consecutive days;
    3. to sell a previously leased motor vehicle:
      1. directly to the lessee and individual who drove the vehicle during the term of the lease or, if the lessee is a partnership, a partner of the lessee;
      2. to any of the persons described in subclause (i) through a motor vehicle dealer registered as a general dealer;
      3. to a registered motor vehicle dealer; or
      4. at an auction where:
        1. the person who arranges for and conducts the auction is exempt from the Act and the regulations as a result of paragraph 1 of subsection 2(1); and
        2. the sale is made to a person who is located and registered (with status equivalent to a registered motor vehicle dealer) in another jurisdiction;
    4. to sell a motor vehicle that the Lease Finance Dealer has repossessed to or through a registered motor vehicle dealer or at an auction where:
      1. the person who arranges for and conducts the auction is exempt from the Act and the Regulations as a result of paragraph 1 of subsection 2(1); and
      2. the sale is made to a person who is located and registered (with status equivalent to a registered motor vehicle dealer) in another jurisdiction;
    5. to trade in a motor vehicle with a motor vehicle dealer who is registered as a General Dealer or a person who is exempt from the Act and the regulations as a result of paragraph 21 of subsection 2(1);
    6. to trade in a motor vehicle with the purchaser if:
      1. the vehicle is the subject of a conditional sales contract originally entered into between the purchaser and a General Dealer; and
      2. the General Dealer has assigned its interest under the contract to the Lease Finance Dealer; or
    7. to advertise with respect to the activities described in any of clauses (a) to (f ). O.Reg.333/08, s.24(2).

    Fleet Lessor – commercial lessor: Reg.25. A motor vehicle dealer registered as a Fleet Lessor in the subclass of commercial lessor shall not act as a motor vehicle dealer, other than:

    1. to buy or lease motor vehicles as a lessee;
    2. to lease a motor vehicle to a lessee who is not a consumer within the meaning of the Consumer Protection Act, 2002;
    3. to sell a previously leased motor vehicle:
      1. to the lessee;
      2. to an individual who drove the motor vehicle during the term of the lease;
      3. to an officer or director of the lessee, if the lessee is a corporation;
      4. to a partner of the lessee, if the lessee is a partnership;
      5. to a registered motor vehicle dealer; or
      6. at an auction where:
        1. the person who arranges for and conducts the auction is exempt from the Actand the regulations as a result of paragraph 1 of subsection 2(1); and
        2. the sale is made to a person who, at the time of the sale, is located in another jurisdiction and registered in that jurisdiction as a person with equivalent status to a registered motor vehicle dealer; or
    4. to advertise with respect to the activities described in any of clauses (a) to (c). O.Reg.333/08, s.25.
Print