Whether you choose to lease or purchase your next new vehicle, it’s crucial to make an informed and educated decision. Failing to do adequate research BEFORE your lease or purchase can have considerable financial implications. So if you’re considering leasing a new vehicle, ensure you understand how leasing works and decide if it’s right for you…

What is a Lease?

A lease is a long-term car rental since you’re only paying for part of the cost of the vehicle; you don’t actually own the vehicle unless you decide to pay the remaining amount at the end of the lease term. This remaining amount is called the “residual value.” Lease agreements are for a specific duration (typically 24-60 months) with a set monthly payment. Leasing is available for new and used cars.

 

Educating consumers on their car-buying rights is an integral part of OMVIC’s mandate. OMVIC believes that an informed consumer is a protected consumer. With our educational resources available online, consumers can improve their consumer confidence while staying safely at home.

 

Following the reopening of auto dealerships in the province, (by appointment only), Ontario’s Vehicle Sales Regulator, OMVIC has released a comprehensive COVID-19 Crisis Guidelines: Guidelines for Dealership Sales Operations to help motor vehicle dealers operate while protecting the health and well-being of their employees, customers and the public.

The framework for OMVIC’s guidelines came from the industry-specific recommendations created by the province, and its public health agencies.

 

Although there is much uncertainty in the marketplace these days, one thing remains the same: the more informed you are about your consumer rights, the better off you will be when the time comes to buy a car. 

As Ontario Vehicle Sales Regulator, OMVIC has a mandate to protect and educate consumers. We do this in several ways including offering free car-buying seminars to school or community groups in Ontario.

 

 

As Ontario's vehicle sales regulator, OMVIC provides consumer protection to Ontario’s car buyers and enhances industry professionalism among registrants. But let's dig a little deeper and find out the who, what, where, when and why of OMVIC.

Who is OMVIC?

OMVIC (Ontario Motor Vehicle Industry Council) is Ontario’s vehicle sales regulator. With a mandate to protect consumers, OMVIC’s office and field staff administers and enforces the Motor Vehicle Dealers Act and other consumer protection statutes on behalf of the Ministry of Government and Consumer Services.

 

As the current health crisis continues to evolve, some consumers have reached out to us with questions on navigating the changing marketplace. We’re featuring two questions related to COVID-19 on this week’s blog. 

I purchased a car on Friday from a relative and now I’m wondering how I would go about registering the car and paying taxes during the pandemic. 

Private sales still need to be completed through Service Ontario. They have a list of locations on their website indicating which ones are open. 
OMVIC has a lot of great resources including checklists, videos and tips for anyone interested in buying a car privately. Visit Tips for Buying Privately to learn more.

 

Pandemic or not, life happens.

Normally, when a consumer wants to buy a car, Ontario’s Vehicle Sales Regulator, OMVIC ‘s recommendation would be that they make an informed choice, whether that is buying privately or buying from a registered dealer. Should consumers opt to go the private sales route, they should know that they are forgoing the consumer protections available to them when they buy from a registered dealer.

But, on April 4, in response to preventing the spread of COVID-19, the Ontario government reduced the list of essential workplaces that can remain open. As a result, motor vehicle dealers’ showrooms across the province were ordered to close until further notice. Though many dealers in Ontario are able to sell vehicles online, not all dealers have the capability and resources at this time to do so.

 

COVID-19 has changed life for all of us, staying in is the new normal and much of our contact is virtual. For car-buyers, this means researching, and potentially completing the entire vehicle-purchase process,  online or remotely. Because this trend is growing in popularity, OMVIC has added resources to its website so that car-buyers can be informed and protected.

 4/14/2020

Message from John Carmichael, OMVIC CEO and Registrar

COVID-19 is an unprecedented crisis for our stakeholders– dealers, salespeople and consumers – and for Ontarians and the world. OMVIC is committed to the health and safety of its staff and its stakeholders. OMVIC will continue to operate from remote sites and work with its stakeholders in these challenging times. While some service levels have been impacted, OMVIC remains committed to maintaining a fair and informed marketplace by protecting the rights of consumers and ensuring fair, honest and open competition for registered motor vehicle dealers during these challenging times.

The impact of COVID-19 will require all of us to adapt and have flexibility with what lies ahead. I have no doubt that we will be successful in facing these challenges.

When Thaya Gengatharan, OMVIC’s Director of Registration, received a detailed questionnaire from the Women & Automotive Leadership Forum some weeks ago, she assumed it was some sort of feedback survey.

She filled it in and then forgot all about it.

It wasn’t until people dropped by her offices to congratulate her that Gengatharan realized she was one of the recipients the 2020 Women & Automotive Leadership Award.

Each year, Cherokee Media, publisher of the AutoRemarketing Canada magazine, selects and honours accomplished women who work in the Canadian automotive sector and are leaders.

 

An Oakville dealership and four of its staff were fined a total of $21,500 for breaching the Motor Vehicle Dealers Act (MVDA) Code of Ethics.
Oakville Chrysler Jeep Dodge Ram Ltd., Reg Nimeck, Gordon Nimeck, Andrew De Clavasio and Camillio Comparone were disciplined by OMVIC, Ontario’s vehicle sales regulator, for failing to comply with Ontario’s all-in price advertising regulation.

 

A Toronto General Motors (GM) dealership, Dean Myers Chevrolet Ltd., and 1125278 Ontario Limited, o/a Dealerwerx Leasing, both located at 3180 Dufferin St., North York, have currently closed their doors after the appointment of a receiver, Deloitte Restructuring Inc. (Deloitte), by the Ontario Superior Court of Justice. The application for appointing a receiver was made by the Royal Bank of Canada.

 

When it comes to buying a vehicle in Ontario, it is crucial consumers do their research before making a purchase. Whether buying from a private seller or an OMVIC-Registered Dealer, homework will help prepare consumers to buy a car.

 

 

From time to time, we feature a consumer question on the OMVIC blog, like this one, “If I sell a car by myself, or put it on Kijiji, does that make me a curbsider?

The simple answer is no—selling a car does not automatically make someone a curbsider. Anyone is entitled to sell his or her personal vehicle—that is, a vehicle that was purchased and owned for personal, family or household use. Curbsiders are in the business of selling cars. While they usually pose as private sellers, they buy cars, not for personal use, but to resell.