How to Identify a Manufacturer Advertisement – 3 Tips
May
19
Friday, May 19, 2017
All-in price advertising is the law in Ontario; a law meant to provide transparency to consumers and create a fair and level playing field for car dealers. Through OMVIC’s on-going consumer awareness efforts, the public is becoming more informed of the all-in pricing rules when purchasing a car from an OMVIC-Registered Dealer — but there is still some confusion…
#DYK Manufacturers Do NOT Require OMVIC Registration?
OMVIC does not regulate vehicle manufacturers; therefore advertisements placed by manufacturers do not have to comply with the Motor Vehicle Dealers Act (though some do voluntarily comply with advertising provisions and commendably provide transparency to consumers).
How to Identify a Manufacturer Advertisement—3 Tips
Make certain you aren’t mistaking a manufacturer advertisement for a dealer’s before relying on advertised prices.
- Does the ad contain a dealership name? If there isn’t a reference to a specific dealership or group of dealers this 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.
How Does All-in Price Advertising For Dealers Work?
When a dealer advertises a price for a vehicle (new or used), that price MUST include all fees or charges the dealer intends to collect. Examples include fees/charges for:
- Freight
- PDI – PDE (pre-delivery inspection/expense)
- Administration (admin) fees
- Government levies (air tax, etc.)
- OMVIC fee ($10)
And, if a dealer intends to charge for products or services they have pre-installed on a vehicle, these costs MUST also be included in the advertised price of the vehicle. Examples include:
- Nitrogen/tire warranty/locking lug nuts
- Security products/services
- Fuel
By law, the only additional fees a dealer can charge are HST and licensing (the actual cost of vehicle registration and plates), unless the fee is for optional services or products the consumer has requested or agreed to purchase. These regulations apply equally to both new and used car dealers.
Remember, advertisements placed by dealers must adhere to the Motor Vehicle Dealers Act and Code of Ethics. Manufacturer advertisements don’t have to follow these rules, so it’s important to know whose advertisement it is you’re reading/viewing.
For more car-buying tips, visit omvic.ca.
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www.ontario.ca/page/consumer-protection-ontario
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