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OMVIC Blog: Car Buying Tips

Buying a Car in Ontario? Review Advertisements BEFORE You Buy!

May 6

Written by: OMVIC Communications
Friday, May 6, 2016  RssIcon


All-In Price Advertising — It’s The Law

All-in pricing is the law! If an OMVIC-Registered Dealer advertises a price for a vehicle (new or used), the Motor Vehicle Dealers Act (MVDA) requires that the price include ALL fees and charges the dealer intends to collect.

 Blog 37 Image 2


What is an Advertisement?

An advertisement is any inducement to buy or lease a vehicle. This would include, but is not limited to:

  • Newspaper ads
  • Magazine/publication ads       
  • Website adsBlog 37 image 3
  • Radio/TV ads
  • Billboards
  • Signs (including those displayed in or on a vehicle)
  • Information printed on the vehicle itself
  • Social media (Facebook, Twitter, Instagram, Snapchat, etc.)

All-in Price Advertisements – What must be included?

Examples of fees or charges that must be included in an advertised price include:

  • Freight
  • PDI-PDE (pre-delivery inspection/expense)
  • Administration (Admin) fee(s)
  • Government levies (air tax, etc.)
  • OMVIC fee ($10)
  • Safety and e-test (unless the ad contains a prescribed "Unfit Vehicle" or "As-Is Vehicle" disclosure statement)

Further, if a dealer intends to charge for products or services they have pre-installed on a vehicle, those costs MUST also be included in the advertised price. Examples include:

  • Nitrogen/tire protection package
  • Warranties
  • Security or theft deterrent products/services (etching, etc.)
  • Fuel

It is important to note that although all mandatory fees must be included in the advertised price, the sales contract must clearly itemize each of these fees. Additionally, it’s a good idea to keep a copy of advertisements to capture advertised prices before entering a dealership.


What should a consumer do if a dealer tries to add charges in excess of the advertised price?

Walk away, shop elsewhere and report the offending dealer to OMVIC.

 

Note: OMVIC does not regulate vehicle manufacturers; therefore advertisements placed by manufacturers do not have to comply with the MVDA and all-in pricing is not required in manufacturer ads. That said, some manufacturers voluntarily comply with the all-in pricing provision and commendably provide transparency to consumers.

 

Blog 37 image 4
 

While most dealers adhere to the all-in pricing regulations, OMVIC continues to have concerns with the levels of non-compliance by some dealers. A review of recent discipline decisions demonstrates the seriousness with which OMVIC treats the issue. But it is impossible for OMVIC to review each of the millions of dealer ads on the radio,  in online marketplaces or in newspapers. This is why it’s vitally important consumers understand all-in pricing and do their research before buying!

 

To learn more about your car-buying rights, visit omvic.ca.



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