Before you buy a car, understand how all-in price advertising works
May
31
Written by:
OMVIC Communications
Monday, May 31, 2021
Apart from HST and licensing fees, the price you see in a dealership car ad in Ontario is the maximum price you are expected to pay for your vehicle: not a penny more. It’s the law.
In Ontario, the advertised price of new and used vehicles sold at dealerships must include all fees and charges a dealer will collect once a sale is completed. When examining the price of a car, get a detailed breakdown of all the following fees and charges from the dealer, which should be included in the all-in price.
- Freight
-
PDI-PDE (pre-delivery inspection/expense)
-
Administration fees
-
Government levies (i.e. air tax)
-
OMVIC fee
-
Safety e-test (unless the ad contains an unfit vehicle or as-is vehicle disclosure statement
-
Anything pre-installed on a vehicle by the dealer (i.e. tire protection package, warranties, security/theft deterrent system, fuel)
Take time to ask the dealer to explain each of the fees and charges listed on the sales contract, and make sure they do not exceed the advertised price. It is also helpful for buyers to take a photo of the dealer’s ad, and bring it with them when shopping. If a dealership the dealer tries to charge over the advertised price, walk away from the deal and contact OMVIC.
There are, however, a few exceptions. Ads produced directly by manufacturers are exempt from this rule. Advertising for unfit and as is vehicles are exempt too. When ads are placed by two or more dealers, the all-in price can exclude the administration fee, but it must still be listed separately and prominently in the ad.
Consumers can report dealers and salespeople who try to charge additional fees on top of the advertised price through the OMVIC website. Our consumer support staff can be reached by mail, phone or through an online complaint form on the OMVIC website.
About OMVIC
At OMVIC, we strive to maintain a fair and informed marketplace for consumers, dealers and salespeople. Our website has tips for buying a car online, and our team is always here to support you through every step in your car buying journey.
Feeling confident? Take OMVIC’s car-buying quiz today to see if you have the knowledge to make a safe and informed purchase.
Connect with OMVIC on social media!
Ontario Motor Vehicle Industry Council
@omvic_consumers
@omvic_official
Ontario Motor Vehicle Industry Council
www.omvic.ca
www.ontario.ca/page/consumer-protection-ontario
Copyright OMVIC©2021