Recently, OMVIC has noticed a trend whereby multiple dealers share a single location however the layout of the premises does not allow customers to easily determine which dealer they are dealing with, or which dealer owns the displayed vehicles. In some cases this type of chaotic environment has led dealers to invite customers to locations other than the registered address, a serious breach of the MVDA. In order to address these concerns, to ensure the proper secure storage of documents and to help maintain an effective inspections process, the following premises criteria will be applied to all new applicants for a General Dealer registration and to those currently registered General Dealers who move.
These dealer’s premises must:
- provide a separate, permanent, fully secured and enclosed (walls to ceiling and lockable door) office space for each dealer. The office space must be sufficient in size for the secure storage of six years of books/records*, provide an exclusive work area for the dealer to conduct business (including office furnishings – desk, chairs, file cabinets), and provide electricity, heat and access to a washroom/toilet
- be clearly separate from other businesses operating at the location. Note: an exception may be granted if the dealership shares an office with a related business (e.g. a repair facility) that is operated by the same dealership
- provide a marked area for the display of vehicles (this area and/or individual parking spots must be clearly marked with the dealership’s name) or, display a sign on each vehicle clearly indicating the selling dealer’s name
- be easily accessible and open to the public, or able to be reached at a clearly posted phone number, during normal business hours, or at times that are clearly posted for the public to see.
Additionally, these dealers must provide:
- a premises lease with a minimum term of six months; the lease must permit the sale/inventory of vehicles and provide unrestricted access to the premises by the dealer
- evidence of compliance with the Compulsory Automobile Insurance Act i.e. a statement of insurance (garage auto policy OAP4) with a minimum third-party coverage of $1,000,000.
These requirements apply in addition to the existing requirements for ALL General Dealers including the posting of a permanent sign and a valid municipal permit allowing the sale/display of vehicles.
These changes for new or moving dealers are meant to ensure dealers comply with the requirements of the MVDA, to improve transparency for consumers and to build trust in the industry.
*Note: A dealer may only store records at another location with the written approval of the Registrar.
For frequently asked questions regarding this new premises policy visit: http://www.omvic.on.ca/portal/DealersSalespersons/FAQ/PremisesPolicyforRetailDealers.aspx
Dealers seeking more information should contact OMVIC’s Registration Department at 1-800-943-6002x5104 or via e-mail at