GOOD NEWS FROM OMVIC

GOOD NEWS FROM OMVIC

For years now, the UCDA has been asking for some flexibility to bring relief to wholesale dealers who cannot source inventory from the public.

Wholesalers are restricted in their ability to buy from the public. There was no solution.

Then along came COVID and the inventory restrictions and supply constraints closed even the normal avenues available to wholesalers. Dealers largely stopped selling wholesale to other dealers at all.

Wholesalers were left struggling and times have been very hard for them.

Now, finally, an option is presented by OMVIC.

A new “dual registration” is available.

You can register as both a “wholesale” and “export” dealer. This will allow you to buy vehicles from the public either for sale to other dealers in Ontario or for sale to buyers, both dealers and non-dealers, outside of Ontario.

Wholesalers with a dual registration may have to pay transaction fees for sales outside of Ontario to non-dealers. 

Premises restrictions apply for those who choose the dual registration.

Please see the whole Bulletin from OMVIC here:

https://www.omvic.ca/update-on-wholesaler-and-exporter-class-registration/

OMVIC says they will provide further details on terms, conditions, and portal access in the coming weeks.

To apply and for questions or assistance contact OMVIC’s Registration Department at [email protected], or call 1-800-943-6002, extension 2. 

Online registration is currently not available.

OCM WARNING​

OCM WARNING

Since late November of 2024, the UCDA has been receiving calls from dealers who have released vehicles to purchasing consumers who have financed their purchases through OCM Auto Financing Group Ltd. (“OCM”) https://ocmcorporation.com/

The concerns our Members have shared with us, is that OCM is late in paying them, and they are left anxious for weeks or months, as their customers are driving vehicles they sold and released to them, and for which they have not been paid.

We discussed these concerns with OCM at the time, in hopes that funding difficulties would be swiftly resolved, but as we have continued to receive calls and emails, and as recently as this week several more, the time has come to issue a warning to UCDA Members.

If you are considering selling a vehicle to a consumer who is financing their purchase with or through OCM:

Do not release the vehicle to the consumer until you are paid.

The UCDA has always advised dealers not to deliver financed vehicles to consumers until you have the funds in your account, but we realize this is not always practical.  In such cases obtain assurance, in writing, BEFORE you deliver the vehicle as to how long you can expect to wait to receive funding and then make your decision accordingly.

For dealers who have already released their vehicle and have yet to be paid, and despite attempts to get OCM to advance funding, remain unpaid, your options are to retain legal counsel, and get advice as to registering a lien on the vehicle, possibly repossessing it from the consumer or taking legal action.

It is also good practice to explain the situation to the consumer prior to any action so they understand the circumstances and they might be able to talk to OCM as well to avoid the need for further steps.

Federal Grinch Brings More Red Tape For Dealers

Federal Grinch Brings More Red Tape For Dealers

As mentioned in a Dealer Alert earlier this week, the Federal Government want to extend reporting and record-keeping requirements to vehicle leasing and financing for business purposes, passenger vehicles and goods valued above $100,000. The $100,000 threshold trigger does not even apply to vehicles, so a vehicle worth less than $100,000 would still require reporting!

Basically, they want to treat vehicle and finance dealers like banks, requiring various record keeping and reporting under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and requiring reporting through the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) system.

All this while there is no evidence this problem even exists in Ontario. We have never seen a massive prosecution or enforcement in the automotive industry involving money laundering or terrorist funding. This has all the earmarks of a solution in search of a problem and worse, an exercise in optics that will add costs, red tape and increase the price of vehicles for consumers.

The UCDA will submit its comments shortly on the proposed Regulatory changes and make points on the:

  • lack of consultation
  • short window for comments (Nov. 30 to Dec. 30)
  • short window for implementation (by October 2025)
  • fact the $100,000 trigger should apply to passenger vehicles too
  • negative effect this will have on many small businesses in Ontario that engage in vehicle leasing and financing

We urge you to do the same, make your voices heard by submitting comments here:

https://canadagazette.gc.ca/rp-pr/p1/2024/2024-11-30/html/reg1-eng.html

… and by contacting your MP before they go home for the Holidays:

https://www.ourcommons.ca/members/en

Holiday Hours

Holiday Hours

Dealers must be closed on December 25, 2024, Christmas Day (a Wednesday this year) and January 1, 2025, New Year’s Day (also a Wednesday). Staff must have those days off, with pay.

While you can be open on Boxing Day (Thursday, December 26, 2024), if you are, another day off must be given to staff or they must be paid their regular pay plus time-and-half holiday pay for working that day.

The UCDA office will be closed on December 25, 26 and January 1, 2025.

UCDA searches can still be performed online at www.ucdasearches.com during the holidays, and the office will be open as usual December 23, 24, 27, 30 and 31st, 2024 and reopen on January 2, 2025 and the days after that as usual.

 

Happy Holidays from the UCDA!

FEDERAL GRINCH BRINGS MORE RED TAPE FOR DEALERS

FEDERAL GRINCH BRINGS MORE RED TAPE FOR DEALERS

On Nov. 30, 2024, the Government of Canada published draft amendments to regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the “PCMLTFA”). The stated purpose of the proposed amendments is to strengthen Canada’s Anti-Money Laundering and Anti-Terrorist Financing (“AML/ATF”) framework and address evolving threats to Canada’s financial system while aligning the country with international standards set by the Financial Action Task Force, the international AML/ATF standard-setting body.

This will be the same reporting system banks use for Source of Funds declarations and that sort of thing. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) is Canada’s financial intelligence unit and anti-money laundering and anti-terrorist financing supervisor. Its mandate is to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the protection of personal information under its control.

Vehicle over $100,000 finance and leasing

The Federal Government want to extend this kind of reporting to vehicle leasing and financing for business purposes, passenger vehicles and goods valued above $100,000.

Part of the problem is this massive document invites comments only until December 30th, and this while the holiday season is upon us! Even the Ottawa bureaucrats are not in the office after this week.

The other problem is we have seen no evidence this problem exists in Ontario. We have never seen a massive prosecution or enforcement in the automotive industry involving money laundering or terrorist funding. This has all the earmarks of a solution in search of a problem and worse, an exercise in optics that will add costs, red tape and increase the price of vehicles for consumers.

The proposed amendments are planned to come into force in two phases. Those related to information sharing would come into force immediately upon publication of the final regulations in the Canada Gazette. The other amendments would come into force on Oct. 1, 2025, to allow businesses to prepare to comply with the new requirements.

Leasing and financing companies will be regulated under FINTRAC and be required to implement compliance measures set out in the PCMLTFA. These include AML/ATF compliance programs, customer due diligence, record-keeping, and reporting of  suspicious transactions. Such companies would also be required to verify identity and keep a record of every transaction of $3,000 or more.

An administrative monetary penalty for non-compliance is proposed with a range of $1,000 to $500,000 depending on the seriousness of the violation.

Strengthening border controls

Ottawa also proposes to grant the Canada Border Services Agency (CBSA) the power to seize and forfeit goods where it has reasonable grounds to believe that the goods are proceeds of crime or related to money laundering, terrorist financing or sanctions evasion.

Traders (persons or entities) would be required to attest to the CBSA that imported and exported goods are not proceeds of  crime or related to money laundering, terrorist financing, or sanctions evasion. They would also be required to attest that the goods represented as being imported/exported are, in fact, being imported/exported, as a means to combat the use of  phantom shipments.

Entities involved in importing and exporting goods would need to implement systems to report transactions to the CBSA, ensuring adherence to the new trade-based financial crime reporting obligations. Record-keeping requirements would also be imposed similar to what is already required for customs and tax purposes.

The UCDA will certainly be making submissions on these concerning developments, and we urge you to do the same here:

https://canadagazette.gc.ca/rp-pr/p1/2024/2024-11-30/html/reg1-eng.html

and let your MP know what you think as well here:

https://www.ourcommons.ca/members/en

REGISTRATION EXTENSION FOR LIGHT DUTY AND STRUCTURAL INSPECTION STATIONS

REGISTRATION EXTENSION FOR LIGHT DUTY AND STRUCTURAL INSPECTION STATIONS

Light duty and structural Motor Vehicle Inspection Stations (MVIS) now have until MARCH 31, 2025 to register for the new digital safety platform called DriveON.
MVIS facilities that only conduct light-duty/passenger vehicle inspections, can apply through the DriveON portal at www.driveonportal.com. The MTO’s full release and other important news can be seen below:
Ministry of Transportation
Commercial Safety and
Compliance Branch

301 St. Paul Street, 3rd Floor
St. Catharines ON L2R 7R4
1 800 387-7736, 416 246-7166 [email protected]		 Ministère des transports Direction de la sécurité et de la conformité en matière de transport commercial
301, rue Saint-Paul, 3e étage
St. Catharines ON L2R 7R4
1 800 387-7736, 416 246-7166
[email protected]
MEMORANDUM TO: MVIS Stations and DriveON Vehicle Inspections Centres
FROM: Jennifer Elliott
Director
DATE: 8-Dec-24
SUBJECT: Updates Regarding DriveON and MVIS Programs
Over the past year MTO has rolled out DriveON–the new digital platform to modernize and streamline Ontario’s vehicle safety and emissions inspections program, to replace the current paper-based Motor Vehicle Inspection Stations (MVIS) program.

Extension of DriveON program In order to ensure a smooth transition to DriveON, MTO is now extending MVIS program until March 31, 2025, only for light duty and structural stations that have not already joined DriveON. This will give stations that are transitioning to DriveON additional time to receive and learn how to use the new equipment while allowing them to continue conducting inspections under MVIS.

Stations that want to continue conducting vehicle safety inspections after March 31, 2025, must join the DriveON program, as the MVIS program will be ending on that date.

Inspection stations that conduct structural inspections can onboard to the DriveON program via the DriveON portal at a future date.

If you have not joined DriveON and you had a valid MVIS licence on December 31, 2024, your MVIS licence and technicians will automatically be extended to March 31, 2025. You will not receive an MVIS renewal package. You are still required to display your 2024 MVIS licence and keep records of all MVIS inspections carried out until December 31, 2025. Please note that you cannot operate under both programs simultaneously; you can only operate under one — MVIS or DriveON.To apply to the DriveON program, please visit Driveonportal.com.

Annual and Semi-annual Inspections 
As of October 1, 2024, all Annual and Semi-Annual Inspections must be performed under the DriveON program.

All MVIS annual or semi-annual stickers and certificates are the property of MTO and must be returned to MTO. Affixing or issuing annual or semi-annual inspection stickers under the MVIS program is prohibited and the maximum fine is $1,000 for each offence and your enrollment into the new DriveON program may be revoked or refused.  

Please note that you must also surrender any remaining MVIS stock if instructed by a Transportation Enforcement Officer. Please return unused stickers or certificates by mail to the address below:

Ministry of Transportation – MVIS unit
301 St. Paul Street, 3rd Floor
St. Catharines ON L2R 7R4

As you transition from MVIS to DriveON, please note the options and restrictions that apply to you based on your status in these programs:

Active in MVIS
This section applies to any active MVIS that may have also applied to the DriveON program.
  • MVIS Licence: Your licence will be automatically extended to March 31, 2025, at no cost. Keep displaying your 2024 MVIS licence and keep records of all MVIS inspections carried out until December 31, 2025.
  • DriveON Statuses: If you have applied to the DriveON program and your application is in the following status, you can continue operating under the MVIS program:
    • Waiting for Ministry to approve contract.
    • VIC in readiness process.
    • Application is MTO User Approved.
  • Annual & Semi-Annual Certificates: You cannot complete annual and semi-annual inspections (these can only be performed in DriveON). Please return all MVIS stock to MTO.
  • Safety Standards and Structural Inspection Certificates: You can continue safety standards and structural inspections under the MVIS program until March 31, 2025, or until you become “Active” under the DriveON program. You can order paper-based MVIS safety standards and structural inspection certificates until January 31, 2025.
Active in DriveON This section applies to all stations that have been approved to join DriveON, have received their equipment, and are operating as a Vehicle Inspection Centre.
  • MVIS Licence: Your licence will be automatically terminated once you have commenced conducting inspections under DriveON.
  • DriveON Statuses: Your DriveON status is:
    • Active
    • Locked
  • Annual & Semi-Annual Certificates: You can complete annual and semi-annual inspections using DriveON equipment ONLY. After a successful inspection (“pass”), annual and semi-annual stickers can be printed and affixed to the vehicle.
  • DriveON VICs pay a fee for each “pass” annual or semi-annual certificate issued when an inspection is completed via their Pre-Authorized Debit (PAD). PAD fees will be collected on a weekly basis. Blank stickers for annual and semi-annual inspections are ordered through the DriveON portal at no cost.
  • Safety Standards and Structural Inspection Certificates: If you have joined DriveON and received equipment, then you must conduct all Safety Standards inspections using the DriveON equipment. More information pertaining to Structural Inspections under DriveON will be communicated shortly.
  • After a successful (“pass”) safety inspection is completed via your PAD, VICs will pay a fee for each safety standards certificate issued on a weekly basis. Safety standards certificates are issued digitally, and no paper-based stock needs to be ordered.
If you have any questions about the MVIS program, please contact MTO toll free at 1- 800-387-7736 or e-mail [email protected]

If you have any questions about the new DriveON program, please contact the Vehicle Inspection Centre Assistance Line toll free at 1-833-420-2110 or email [email protected]

Sincerely,
Jennifer Elliott
Director