Looking At An Advertisement For A Car? Know Whose Advertisement It Is...
Sep
9
Friday, September 9, 2016
So, you’ve seen an advertisement for a brand new car priced at $18,500; is that the actual price? Can you really buy it and drive it off the lot for that price? If it’s an advertisement placed by a dealer, Ontario’s all-in price advertising law suggests —yes (with the addition of HST and licensing of course), however if it’s a manufacturer’s advertisement – no. Make certain you aren’t mistaking a manufacturer’s advertisement for a dealer’s before relying on the advertised price.
This is because OMVIC does not regulate vehicle manufacturers; therefore their advertisements do not have to comply with Ontario’s all-in price advertising law (though some do voluntarily comply with advertising provisions and commendably provide transparency to consumers). This often leads to confusion for consumers and can even lead to distrust of dealers, which in this scenario, is unfair.
How to Identify a Manufacturer’s Advertisement—3 Tips
- Does the ad contain a dealership name? If there isn’t a reference to a specific dealership or group of dealers, it likely indicates it’s a manufacturer’s advertisement.
- If a website referenced in an advertisement directs you to the manufacturer’s national website — not to a specific dealership’s website — this may indicate it is a manufacturer advertisement.
- A manufacturer advertisement may contain language suggesting consumers see their local franchise dealership for further details.
Sometimes car manufacturers release models with attractive advertised prices. At first blush this may seem to be great news for consumers, but some of the advertising for these vehicles can be confusing; perhaps even misleading. With freight/delivery charges, fuel fees and in some instances, administration fees and fees for products or services dealers may have pre-installed on their vehicles (e.g. security products/etching), the actual cost of these vehicles can be higher than the price advertised by the manufacturers!
The Law is Clear About All-in Price Advertising
Ontario’s advertising regulations are clear: if an OMVIC-Registered Dealer advertises a price for a vehicle, that price MUST be all-inclusive with the exception of HST and licensing.
Manufacturer advertisements don’t have to follow these rules, so it’s important to know whose advertisement it is you’re reading/viewing.
To learn more about car-buying rights in Ontario, including all-in price advertising, consumers can visit OMVIC’s website at omvic.ca.
Connect with OMVIC on social media!
Ontario Motor Vehicle Industry Council
@omvic_consumers
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Ontario Motor Vehicle Industry Council
www.omvic.ca
www.ontario.ca/page/consumer-protection-ontario
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