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OMVIC Blog: Car Buying Tips

The "Exceptions" to All-in Pricing: When Dealers Can Add Fees

Nov 8

Written by: OMVIC Communications
Wednesday, November 8, 2017  RssIcon


 Aerial View of Parking Lot

 

All-In Price Advertising is the law in Ontario. If an OMVIC-Registered Dealer advertises a price for a vehicle (new or used), that price must include ALL fees and charges the Dealer intends to collect – minus the licensing fee and HST.

However, as with many rules in life, there are exceptions.

A Dealer CAN charge additional fees:

  • When advertising a vehicle being sold “as-is” (see below)
  • When advertising a vehicle being sold “unfit” (see below)
  • If an advertisement has been placed by two or more dealers, and there is a fee that varies from one dealer to another (e.g. administration fee)  

Additionally, advertisements posted by vehicle manufacturers often don’t include all fees. Because OMVIC does not regulate vehicle manufacturers, their advertisements do not have to comply with the MVDA and all-in pricing. That being said, some manufacturers voluntarily comply with the all-in price advertising provision and commendably provide transparency to consumers.


Advertising “As Is” Vehicles

If an ad includes a price for a vehicle being sold “as is,” the ad should include in a clear, comprehensible and prominent manner the following statement:

“This vehicle is being sold “as is,” unfit, not e-tested and is not represented as being in road worthy condition, mechanically sound or maintained at any guaranteed level of quality. The vehicle may not be fit for use as a means of transportation and may require substantial repairs at the purchaser’s expense. It may not be possible to register the vehicle to be driven in its current condition.”

It is NOT sufficient to simply state the vehicle is being sold “as is.” Note: dealers cannot provide a safety certificate for vehicles sold as-is.


Advertising an “Unfit” Vehicle

If an advertisement has been placed for a vehicle being sold “unfit” (i.e. without a Safety Standards Certificate), the advertised price will exclude the cost for safety certification. The ad therefore should include in a clear, comprehensible and prominent manner, the following “unfit” statement:

"This vehicle is not drivable, not certified and not e-tested." Further, if a dealer intends to offer certification, that specific cost must be disclosed by also stating: “Certification is available for $XXX”.This charge cannot be mandatory! In other words, it must be possible to purchase the vehicle uncertified.


Joint advertisement placed by two or more dealers

If an advertisement has been placed by two or more dealers, and there is a fee that varies from one dealer to another (e.g. administration fee), that fee may be excluded from the all-in price; however, the amount of the fee MUST be disclosed in the ad, along with a description of what the fee is for, in a clear, comprehensible and prominent manner. For example, “The above price does not include administration fees, which vary from $199 to $399, depending on the dealer.”


Questions about all-in pricing, or want to report a dealership/salesperson for not following the rules? Contact OMVIC’s Complaints and Inquiries Team.

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