This month the UCDA achieved a milestone. We reached 5,000 members!

When the UCDA’s first Executive Director, Bob Beattie, and 7 other used car dealers got together at a restaurant in 1984 to discuss how they could unite the used car industry in the face of proposed changes to rules governing used vehicle sales, they could not have foreseen what their creation would grow to become in the future.

The UCDA became the first non-profit organization in Canada established to represent the needs of dealers who sell used vehicles. The early years focused on lobbying efforts with government, aimed at making government aware of the concerns of an industry that was often ignored, or worse, sneered upon. It was for good reason that the Association’s mission statement was and remains, “To enhance the image of the industry”.

The UCDA grew rapidly. The single most important factor in our early growth was the introduction of a phone-in lien search for members, to by-pass what was at the time a very cumbersome government phone service.

The early lien search has surpassed everyone’s wildest dreams, having now grown into the largest online vehicle information search portal in Canada, www.ucdasearches.com.

Member services have always been the priority of the UCDA. The better the services … the more likely a member will renew year after year. Keeping members was a favourite mantra of Bob Beattie.

In the 1990s, used car dealers needed an insurance program and today Baird MacGregor Insurance Brokers remains the UCDA’s only insurance brokerage. Today more than 1,600 members enjoy rate stability and a unique annual claims free rebate.

A few years later, we added our NAPA parts program, which each year provides more than a million dollars in rebates to members. Throw in an affordable health plan and a credit card merchant discount program and the value of a $200 annual membership is pretty clear.

The auto industry has changed a lot in the past 35 years. We have seen industry self management (OMVIC), and completely overhauled regulation with the Motor Vehicle Dealers Act, 2002.

The industry has seen mandatory disclosure requirements, mandatory education requirements, and some of the strictest advertising regulations in Canada.

Through it all, the UCDA has played a significant role in the development of Ontario’s auto industry. And we’ll be here as the industry undergoes even more significant changes in today’s digital world.

With this in mind, you and all members now have exclusive access to list vehicles for sale on your vehicle listing site: ontariocars.ca

We would not be where we are without the strong support of members … and now there are 5,000 of you.

Congratulations and “Thank You” from all of us at the UCDA!

The Uber of Insurance Relief Should Give Lessors a Lyft

Since the disruptors of the people moving business entered the scene, lessors have wondered about their exposure for lessor’s liability on vehicles used by drivers for companies like Uber and Lyft.

Leasing companies enjoy a cap on liability exposure of a maximum $1,000,000 for any loss or damage from personal injury resulting from the use of one of their leased vehicles.

It was an open question whether such a cap applied to leased vehicles used for ridesharing services.

That question was answered when the provincial government’s Bill 107 (Getting Ontario Moving Act, 2019) received Royal Assent on June 6.

The Act extends the liability cap as long as the parties are “dealing with each other at arm’s length”.

This is a huge relief for commercial auto lessors whose leased vehicles could be used by ridesharing companies.

What Employers Need To Know 2019

It can be really hard for today’s employers to keep track of all the expectations placed upon them by the provincial government.

Courtesy of Littler LLP (Labour & Employment Law Solutions,) we have a neat summary, all in one place, of the high points.

Covering expectations, training, posters, handouts, representative and committee requirements (depending on number of employees) … it’s all here.

The publication, can be found at:

https://tinyurl.com/y62fzskw

It covers Employment Standards, Workplace Safety, Violence and Harassment, Disability and Accessibility, Pay Equity, Hazardous Materials (WHMIS) and Smoke Free postings.

It is all current as of 2019, which is useful as the ground keeps shifting for Ontario’s Employers.

Ford Thief

From the wacky news files comes this story reported on by media out of Detroit.

While theft is no laughing matter, and this story would not have as much impact if this guy was stealing tires and so forth off of say Hondas or Chryslers, but this was a Ford and his name is:

Henry Ford!

He is presently a fugitive at large.

Says deputy chief Aaron Garcia: “So Henry Ford, he’s stealing GPS units out of vehicles, he’s stealing tires, he’s robbing these cars, … it’s almost like a disgrace to the Ford Motor Company.”

Meanwhile, if you see Henry Ford jacking a Ford, there is a reward for his capture:

https://tinyurl.com/yxc522kg

Consumers Vote “No” On Data Sharing

While we can’t speak to the science behind it, or the questions, or how they were asked, it is interesting what consumers say when they are asked about data.

83% say no to selling their data.

The short answer seems to be, when they are asked, consumers don’t want their personal data monetized or shared with third parties.

Dealers, Manufacturers, Advertisers, Web Sites and other stakeholders would be wise to pay attention.

Based on a survey of 1,403 current car shoppers by Autolist, 83% think no one should be allowed to sell their data.

70% think they should control (and own) the data that their own vehicle creates.

53% feel that laws are not properly addressing vehicle data, privacy or were not aware of the issue at all.

https://tinyurl.com/y6hbrwm6

Odometer Bonus

Most dealers know about the famous cancellation law in the Motor Vehicle Dealers Act. It allows a consumer the right to cancel … no questions asked, no deductions, no appeal … within 90 days of delivery of a purchased or leased vehicle, if the dealer fails to declare or properly describe on the contract, any of the listed items which relate to odometer, rental, police or emergency vehicle, branding, make, model or model year.

Most dealers understand that if they make a mistake on the bill of sale and record an odometer reading that is lower than the true reading, the customer has the right to cancel.

But, what if the reading you record on the odometer section of your contract states the reading is HIGHER than the true reading on the vehicle? In other words, your customer gets an odometer bonus!

This is an interesting question, because we all know (or we assume) the general intent of the law is to prevent consumers having vehicles forced on them that have higher kms (or miles) than is declared on the bill of sale. But what does the law actually say?

Section 50 of the General Regulations to the MVDA contains the 90 day cancellation rights available to any consumer (ie. non-dealer) on purchase or lease.

With respect to the odometer:

https://tinyurl.com/y3x4qaa4

Cancellation of contracts for non-disclosure

50. (1) For the purposes of section 30 (2) of the Act, if a registered motor vehicle dealer entered into a contract under which another person, who was not a registered motor vehicle dealer, purchased or leased a motor vehicle from the dealer, the person may cancel the contract if,

(a) the dealer has not accurately disclosed, in the contract, the information required under any of paragraphs 3, 7, 17 and 23 of section 42;

(4) A disclosure of a distance required under paragraph 3 or 4 of section 42 shall be deemed to be accurate if it is within the lesser of 5 per cent or 1,000 kilometres of the correct distance required to be disclosed. O. Reg. 333/08, s. 50 (4).

(5) A person may not cancel a contract under subsection (1) more than 90 days after actually
receiving the motor vehicle. O. Reg. 333/08, s. 50 (5).

The Section makes no distinction between errors that are lower than the true reading or higher, it focuses simply on accuracy and the requirement to declare on the contract the “correct distance”.

Despite what might seem logical, even if your customer gets an “odometer bonus” by taking delivery of a vehicle with lower actual kilometers than the contract promised them, they may still exercise the right to cancel.

Identity Theft … Fake Buyers … Dealer Charge Backs

Who’s Job is it to Verify that the Customer Information is Accurate?

The auto industry wants instant approval for car loans and the lenders want efficient data handling and processing. So, we now have instant “Auto Approve”. Problem solved … except when it all goes wrong!

Lenders Say… “It’s Your Job”

The lenders say that the dealer stands “in the shoes of the lender” so verification is your job. The dealer sees the customer and receives their information.

The lender gets the dealer’s paper work weeks after the deal is funded and trusts the dealer has done their “due diligence”. The contract between the lender and the dealer contains a “total recourse” clause and thus the demand for their losses.

Dealers Say … “We Are Not The Police For The Lenders, We Are Not Trained To Spot Identity Theft”

What is reasonable “due diligence” by the dealer? What should you have to do with the customer to satisfy the lenders that you are complying with the contract you signed with them? Unfortunately, the contracts don’t spell out what “your job” is.

• How many pieces of ID do you get?
• Do you phone the employer to confirm employment details and salary?
• Do you call landlords to confirm how long the customer has lived there or get proof of home ownership?

There is a real disconnect here, and the UCDA would like to hear from you …Who’s Job is Verification?

Please send your response to [email protected].

Telus Is Coming …

Soon, the UCDA and Telus will be announcing a new member service. For the first time a leading phone company will be offering special UCDA rates for business mobile phone and tablet plans and line charges. These new rates are very attractive … details coming soon.