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OMVIC Blog: Car Buying Tips

Don’t Get Overcharged When Buying a Car! ONTARIO Consumers Have a Right to All-in Price Advertising...

Sep 2

Written by: OMVIC Communications
Friday, September 2, 2016  RssIcon

 The Focus of OMVIC’s Annual Consumer Awareness Campaign!

 

Some consumers are being overcharged when they buy a vehicle, says OMVIC. “Since 2010, all-in price advertising has been the law in this province,” explained Terry O’Keefe, Director of Communications and Education for OMVIC. “Unfortunately, our research shows that a small minority of car dealers continue to add hidden fees or extra costs that exceed their advertised prices.” This is why OMVIC launched a 10-week consumer awareness campaign to help further educate Ontario car buyers about their right to all-in price advertising. “Ultimately, educated and informed consumers will want to do business with dealers who comply with the law and provide fair and transparent advertising.”

 

The Campaign

A dog relishing a car ride; tongue lapping the air; fur flying in the wind – a sight that exemplifies simple joy; and it’s the imagery supporting OMVIC’s message: all-in price advertising – it’s putting the fun and excitement back into buying a car...and, it’s the law! The province-wide campaign utilizes TV, radio, online and social media advertising.

“While the message delivery is lighthearted, it’s hoped the outcome will have an important affect,” said O’Keefe. “That being consumers will avoid dealers who break the law and instead buy vehicles from those dealers who provide the fair and transparent advertising required by Ontario’s consumer protection legislation.”

 

To access OMVIC’s TV or radio commercials click here.

 

What you need to know about all-in price advertising

If a dealer advertises a price for a car (new or used), that price must include ALL fees and charges the dealer intends to collect except HST and licensing. 

Note: Licensing refers to the actual cost of vehicle registration and plates.

 

What must be included in an all-in advertised price? 

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
  • Safety and e-test (unless the ad contains an "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

Note: All fees must be itemized individually on the contract

 

What is an advertisement?

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

  • In print (newspapers, magazines, etc.)
  • On the internet (dealer website, online marketplace, etc.)
  • On social media
  • On radio or TV
  • On signs (including those in or on a vehicle)

walk away

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 Motor Vehicle Dealers Act (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.

 

Host a free consumer seminar!

OMVIC offers free car-buying seminars throughout the province to community groups, first-time buyers, new Canadians and students. For more information contact OMVIC’s Education Team at 416-226-4500 x3174 or omvic@omvic.on.ca.

free consumer seminar



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