Easter 2021

EASTER WEEKEND

Dealers are legally required to close on Good Friday, April 2nd and on Easter Sunday, April 4th, unless their local municipality has passed a by-law exempting retail businesses from the requirement to close on those statutory holidays. If in doubt, check with your local municipality’s by-law department.

Dealers may be open on Saturday April 3rd, and on Monday, April 5th, which are not statutory holidays.

The UCDA search facility will be closed on Good Friday, but will be open as usual from 9:00 a.m. to 5:00 p.m. on Saturday, April 3rd and from 9:00 a.m. to 8:00 p.m. on Monday, April 5th.

On-line searches can be done all weekend at www.ucdasearches.com. Lien searches requested on Good Friday and Easter Sunday will be available the following day.

 

Eight Regions Moving Within The Colour Coded Framework

EIGHT REGIONS MOVING WITHIN THE COLOUR-CODED FRAMEWORK

Based on the latest data, the Province is moving the following eight public health regions to the following levels effective Monday, March 22, 2021 at 12:01 a.m.:

RED – CONTROL

  • Brant County Health Unit;
  • Chatham-Kent Public Health; and
  • Leeds, Grenville and Lanark District Health Unit.
  • Open for business but at 50 per cent capacity
  • A safety plan is required to be prepared and made available upon request
  • Retailers must post capacity limits publicly
  • Retailers must have passive screening for patrons and active screening for staff
  • Line-ups and patrons congregating outside must be managed by venue; 2 metres distance inside and outside; face coverings are required in line

 

For dealers, levels Orange to Green, share similar required practices:

 

  • Open for business no capacity restrictions
  • Retailers must have passive screening for patrons and active screening for staff
  • A safety plan is required to be prepared and made available upon request
  • Line-ups and patrons congregating outside must be managed by venue; 2 metres distance inside and outside; face coverings are required in line

 

Orange-Restrict

  • Wellington-Dufferin-Guelph Public Health

 

Yellow-Protect

  • Kingston, Frontenac and Lennox & Addington Public Health
  • North Bay Parry Sound District
  • Porcupine Health Unit
  • Timiskaming Health Unit

 

Please visit Ontario.ca/covidresponse for the full list of public health region classifications.

For your region, and more information, see our previous Dealer Alerts at  www.ucda.org/dealer-alerts/

 

 

Ottawa To Move To Red Zone

OTTAWA TO MOVE TO RED ZONE

 

Effective Friday, March 19, 2021 at 12:01 a.m., as a result of worsening trends in key health indicators in the region, the Ottawa Public Health Region is moving to the RED-Control level.

For dealers this means:

RED – CONTROL

  • Open for business but at 50 per cent capacity
  • A safety plan is required to be prepared and made available upon request
  • Retailers must post capacity limits publicly
  • Retailers must have passive screening for patrons and active screening for staff
  • Line-ups and patrons congregating outside must be managed by venue; 2 metres distance inside and outside; face coverings are required in line

To see all Regions, their levels and the medical advice:

Ontario.ca/covidresponse

For past Dealer Alerts from the UCDA please visit here:

https://www.ucda.org/dealer-alerts/

 

Lambton Northwestern Leeds Grenville and Lanark On The Move

LAMBTON, NORTHWESTERN, LEEDS, GRENVILLE AND LANARK ON THE MOVE

More regions are on the move on March 15 at 12:01 a.m.  Lambton Public Health, Northwestern Health Unit and Leeds, Grenville and Lanark District Health Unit will move from their present colour designation into the following categories:

GREY – LOCKDOWN

  • Lambton Public Health
  • 25% capacity limit
  • Retailers must post capacity limits
  • A safety plan is required to be prepared and made available upon request
  • Retailers must have passive screening notice for customers and active screening for staff
  • Individuals must physically distance and wear a face covering
  • No test drive restrictions and no longer by appointment only

RED – CONTROL

  • Northwestern Health Unit
  • Open for business but at 50 per cent capacity
  • A safety plan is required to be prepared and made available upon request
  • Retailers must post capacity limits publicly
  • Retailers must have passive screening for patrons and active screening for staff
  • Line-ups and patrons congregating outside must be managed by venue; 2 metres distance inside and outside; face coverings are required in line

 

YELLOW-PROTECT

  • Leeds, Grenville and Lanark District Health Unit
  • Open for business no capacity restrictions
  • Retailers must have passive screening for patrons and active screening for staff
  • A safety plan is required to be prepared and made available upon request
  • Line-ups and patrons congregating outside must be managed by venue; 2 metres distance inside and outside; face coverings are required in line

Please visit Ontario.ca/covidresponse for the full list of public health region classifications.

For past Dealer Alerts from the UCDA please visit here:  https://www.ucda.org/dealer-alerts/

 

Sudbury And Districts Region Moves To Grey Lockdown

SUDBURY REGION MOVES TO GREY-LOCKDOWN

Sudbury and Districts Region moves into Grey-Lockdown as of Friday, March 12, 2021 at 12:01 a.m.  They are presently in RED-Control.

GREY – LOCKDOWN

  • 25% capacity limit for all retailers including dealers
  • Retailers must post capacity limits
  • A safety plan is required to be prepared and made available upon request
  • Retailers must have passive screening notice for customers and active screening for staff
  • Individuals must physically distance and wear a face covering
  • No test drive restrictions and business does not need to be by appointment only

Public health official cite the rapid deterioration of trends in key indicators, as the reason the emergency brake is being applied to move Public Health Sudbury and Districts to Grey-Lockdown to help reduce further spread of the virus in the region.

Please visit Ontario.ca/covidresponse for the full list of public health region classifications.

For your region, and more information, see our previous Dealer Alerts at  www.ucda.org/dealer-alerts/

 

 

 

 

Toronto, Peel, North Bay, Parry Sound Lockdown Updates

TORONTO AND PEEL MOVE TO GREY-LOCKDOWN; NORTH BAY-PARRY SOUND TO MOVE TO RED-CONTROL AND 7 OTHER REGIONS ON THE MOVE

Toronto and Peel Public Health Regions move into Grey-Lockdown as of Monday, March 8, 2021 at 12:01 a.m.

North Bay-Parry Sound moves into the Red-Control Zone at the same time.

GREY – LOCKDOWN

  • 25% capacity limit
  • Retailers must post capacity limits
  • A safety plan is required to be prepared and made available upon request
  • Retailers must have passive screening notice for customers and active screening for staff
  • Individuals must physically distance and wear a face covering
  • No test drive restrictions and no longer by appointment only
  • For dealers in Toronto, and Peel this means test drive restrictions are no longer in place and business transactions no longer need to be done by appointment only

RED – CONTROL

  • Open for business but at 50 per cent capacity
  • A safety plan is required to be prepared and made available upon request
  • Retailers must post capacity limits publicly
  • Retailers must have passive screening for patrons and active screening for staff
  • Line-ups and patrons congregating outside must be managed by venue; 2 metres distance inside and outside; face coverings are required in line
  • For dealers in North Bay-Parry Sound this also means test drive restrictions are no longer in place and business transactions no longer needs to be done by appointment only

In addition, and at the same time, based on the latest data, the following seven public health regions will also be moving to the following levels in the Framework:

Red-Control

  • Peterborough Public Health;
  • Public Health Sudbury and Districts; and
  • Simcoe-Muskoka District Health Unit.

For dealers, levels Orange to Green, share similar required practices:

  • Open for business no capacity restrictions
  • Retailers must have passive screening for patrons and active screening for staff
  • A safety plan is required to be prepared and made available upon request
  • Line-ups and patrons congregating outside must be managed by venue; 2 metres distance inside and outside; face coverings are required in line

Orange-Restrict

  • Haldimand-Norfolk Health Unit; and
  • Timiskaming Health Unit.

Yellow-Protect

  • Haliburton, Kawartha, Pine Ridge District Health Unit; and
  • Renfrew County and District Health Unit.

All changes will be effective Monday, March 8, 2021 at 12:01 a.m. Please visit Ontario.ca/covidresponse for the full list of public health region classifications.

For your region, and more information, see our previous Dealer Alerts at  www.ucda.org/dealer-alerts/

March 2021

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AUCTION DISCLOSURE ISSUES

We have been receiving a troubling number of calls and emails from Members who, for one reason or another, are unhappy with the way their concerns are being addressed by some on-line auctions.

Increasingly, we are seeing these auctions permit selling dealers to run vehicles under “red light” or “as is declaration,” that have specific problems, like a defective transmission or nonrunning engine, that are not declared. When the buyer protests and seeks arbitration they are, it seems, often told there is no arbitration. In some cases, the failure to declare occurs under a ride and drive, but something expensive like a NAV system is not working, or the vehicle does not “run”.

We have also been asked by a number of Members to seek fuller disclosure of buyer’s fees at auctions. These fees can run as high as 10% or more of the bid value, but they are often not
declared online or at the block. The buyer does not learn what the fee is until after they have bid and it is too late to back out.

At the risk of sounding like a broken record, this is not the legal environment in which modern day motor vehicle dealers operate. The buzzwords today are “FULL DISCLOSURE”. Ontario law requires it, OMVIC enforces it and we hope Ontario auctions, both brick and mortar and online, agree and ensure that it is provided. Without it, dealers cannot pass on the important disclosures they need to give to consumers, much less make informed decisions about buying the unit for the right price in the first place.

Needless to say, as the result of big moves to online auctions by many sellers, especially since the pandemic began, it is even more important that sellers and buyers are not left to guess and wonder.

No auction wants to become a clearing-house for other dealers’ problem vehicles.

All auctions have written rules, and buyers and sellers agree to abide by them in exchange for the chance to buy or sell under the auction’s “roof” or online platform. On occasion, a used car will have defects of one kind or another and the issue is dealt with through the auction’s arbitration process.

If the seller did not make an essential disclosure that the rules (or the MVDA) require, then the seller can be required to take the vehicle back and refund the price paid to the buyer.

While this might sound simple on paper, it is complicated in practice. The auctions derive their rules from a number of sources:

  • The Motor Vehicle Dealers Act. Sellers are legally required under the wholesale sections of the MVDA to disclose as many as 21 specific items that may apply to the vehicle. The most common are daily rental, accident damage over $3,000, Out-of-Province and so on. The complete list can be found in Section 5 at https://tinyurl.com/ytd8sc65.
  • When you enter the auction you are also agreeing to abide by the auction’s arbitration rules. A copy is available from the auctions. These rules are base on National Auto Auction Association. You need to be aware of the specific disclosure rules and time limits for requesting arbitration.
  • Unwritten rules that the auctions have devised to cope with specific concerns and might be best called “policy”.

At the end of the day, the required disclosures are the responsibility of the selling dealer and failure to make disclosure can be enforced by OMVIC. While auctions are exempt from the MVDA, they are expected to ensure that sellers fulfill their disclosure obligations.

This is a complex and difficult area. While we have sympathy for the auctions who have to navigate a minefield of competing concerns; legislation, clients, policy, national arbitrations rules and their own business strategy, we have been hearing about this issue for far too long.

We have, once again, begun a dialogue with the auctions in hopes of trying to help organize a path forward that takes account of everyone’s interests. However, times are too tough for many members to simply stop there.

We would hope that auctions will help create an environment where buyers can have the confidence that they will receive full disclosure of vehicle defects, but if they don’t, we will have to find work-arounds, if need be with OMVIC. We won’t stand idly by if our Members are treated unfairly.

                   In the meantime… Buyer Beware!

 

UCDA’s Used Vehicle Industry Survey Member Service

Since the UCDA was formed in 1984 one question that has often been asked … and NEVER accurately answered has been … “How many used cars are sold annually in Ontario?”

We have been asked other questions too. “What are the best selling used cars in Windsor, Ottawa, North Bay?” “What is the best selling used truck?” “What is the average gross profit on used cars?” “How much should I be paying my staff to be competitive?” Nobody knows, because nobody has ever asked the used vehicle dealers of Ontario.

Working with Desrosiers Automotive Consultants we hope to be able to help shed some light on these and other questions.

The first of a series of Member surveys has been completed and more than 650 Members responded. That’s a 13% response rate, which is very good by survey industry standards.

Given the last year, do you want to know what the business looks like, and what the future might look like?

Those Members that completed the survey, and requested to continue receiving them, can request a detailed report analyses by Desrosiers detailing the first dedicated survey of the used vehicle business in Ontario. Please contact the UCDA to request a copy.

Here are some of the highlights:

  • Members responding to the survey reported an average decline of 15.8% in the number of vehicles sold in 2020, compared with the number in 2019.
  • Respondents expected that number to recover significantly in 2021.
  • Franchised dealers were most optimistic, expecting sales to be over 10% higher in 2021 than they had been in 2019. Independent dealers, while looking for a significant improvement over 2020, did not expect 2021 to be as good as 2019.
  • The average age of used vehicles sold also showed a considerable difference between franchised and independent dealers. Well over 50% of used vehicles sold by franchised dealers in 2020 were between 1 and 3 model years old. Independent dealers’ sales were fairly evenly balanced, with the highest category of 4-7 year old models accounting for just under 40% of units sold.
  • One area where the survey results showed stability was in the method of payment used by purchasers in both 2019 and 2020. Less than 40% of vehicles purchased during both years were financed by loans arranged by the dealer or in-house. Almost 60% of purchasers bought with cash or used financing that they arranged themselves, including lines of credit. About 5% of used vehicles in both 2019 and 2020 were leased.

 

Do I Have To Confirm Insurance?

One UCDA Member would tell you “Yes”!

The Member sold a vehicle in 2018 and the customer gave them what he said was his insurance policy number. It was enough to get the vehicle plated. Unfortunately, when he got in an accident, it turned out the policy number, while valid, was not his.

Now the dealer is among the parties being sued by the accident victim. They wish they had something in the file they could show the judge when this comes to trial. Always get a binder agreement or pink slip faxed or emailed from the insurance company. Don’t hesitate to call the broker to confirm the arrangements (an excellent practice) and the information provided, especially if no written confirmation has yet been received from the insurer.

 

Watch Your “Cats”

Catalytic Converters (commonly referred to as “cats”) are unassuming and somewhat ugly looking devices that nestle within exhaust systems and clean the pollutants from exhaust gasses quite efficiently.

As dealers know, cats are not cheap to replace and to some criminals they are worth their weight in gold … not so much for what they do, as to what is in them.

Cats contain valuable metals such as platinum, palladium and rhodium. Depending on market conditions, these substances can fetch more cash than gold.

So, needless to say, guard your vehicles against opportunistic thieves looking to steal your “cats”. They are not hard to steal given they are located in an exposed area under the vehicle and can be removed very swiftly if you have the right tools and the know-how.

Indeed, the UCDA, located as we are in an industrial area with some vehicle repair shops nearby, have neighbours who have already fallen victim to these crimes of opportunity, and this on the heels of media reports warning about the very same thing all over Canada:

https://tinyurl.com/tb7rys4u

 

Chrysler Leaves CAMVAP

Without much fanfare, and in the midst of many other distractions, Fiat Chrysler Automobiles Canada has announced, effective December 31, 2020, their decision to pull out of the Canadian Motor Vehicle Arbitration Plan (“CAMVAP”).

It will be interesting to see if this prompts louder calls from consumer groups for a lemon law in Canada, similar to the approach that exists in the U.S.

CAMVAP is available to consumers who are unhappy with defects in their new or newish car or how their factory warranty is being applied.

Qualified vehicle (generally current and previous 4 model years old under 160,000 kms) owners can engage their vehicle’s manufacturer in binding arbitration through CAMVAP. CAMVAP have the power to order the manufacturer, among other things, to buy-back the car or fix it.

Dealers are required, on the sale of any vehicle, to identify if the maker of the car participates in CAMVAP … now they will need to add Chrysler to the list of those who do not.

https://tinyurl.com/52dzt486

Users of UCDA used sales/lease forms will recognize this question on their forms:

MANUFACTURER PARTICIPATES IN CANADIAN MOTOR VEHICLE ARBITRATION PLAN (CAMVAP) YES __ NO __

CAMVAP STATEMENT ON REVERSE (NOT ALL VEHICLES QUALIFY)

Here are the manufacturers who still participate:

Ford   * GM   * Honda
Hyundai   * Jaguar / Land Rover   * KIA
Mazda   * Mercedes-Benz   * Nissan
Porsche   * Subaru   * Toyota
Volkswagen / Audi   * Volvo

Leaving the ones who don’t:
Chrysler   * Mitsubishi   * BMW
  *exotics (Ferrari, Lamborghini, Maserati, Bentley, etc.)

 

Cryptocurrency

You may have heard about cryptocurrency. You have no doubt heard about it from your kids, or in the media, or from the “internet”.

You may not understand it. You are not alone.

Without getting too deep into the blow-by-blow explanations, suffice it to say this “new” form of exchange is growing in popularity and assumedly in value amongst those ‘in the know’.

But no form of exchange is any fun if you can’t buy things with it like land, boats, planes or … cars or trucks.

Dealers may be asked more and more about accepting payment with some form of cryptocurrency, the most commonly known version of which is called “bitcoin”.

You may have heard news reporting that a dealer group in Quebec is going to accept cryptocurrency in payment for used and new motor vehicles in that Province.

We had a dealer recently ask us if he is “allowed” to accept such a currency as payment for a car. Our answer was “Yes”!

Turns out, you can accept a truckload of chickens if you want to. If it has value to you, then go for it.

But … and it’s a big but … don’t forget the Canada Revenue Agency.

The CRA do not accept cryptocurrency, so you will need to remit the correct HST to the CRA on the fair value of the vehicle being sold in what we still like to refer to as actual “money”!

Oh, and by the way, the CRA does not accept chickens either!

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Enroll today: www.siriusxm.ca/UCDA

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We’ve added a new training module to our Dealer Training Portal – for each module completed, you receive three months of free streaming. Be sure to check out our social channels to find out when module eight goes live and earn up to two years of free streaming!

Check it out here !

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Thunder Bay, Simcoe-Muskoka, Niagara and Other Regions Update

THUNDER BAY AND SIMCOE-MUSKOKA MOVE FROM RED TO GREY LEVEL

NIAGARA MOVES TO RED-CONTROL, SIX OTHER REGIONS ALSO MOVE

 

As of today, Thunder Bay District Health Unit and Simcoe-Muskoka District Health Unit are to move from the Red-Control level to the Grey-Lockdown level based on increasing numbers in those regions.  Niagara Region moves out of the Grey-Lockdown into the Red-Control zone.

GREY – LOCKDOWN

  • 25% capacity limit
  • Retailers must post capacity limits
  • A safety plan is required to be prepared and made available upon request
  • Retailers must have passive screening notice for customers and active screening for staff
  • Individuals must physically distance and wear a face covering

RED – CONTROL

  • Open for business but at 50 per cent capacity
  • A safety plan is required to be prepared and made available upon request
  • Retailers must post capacity limits publicly
  • Retailers must have passive screening for patrons and active screening for staff
  • Line-ups and patrons congregating outside must be managed by venue; 2 metres distance inside and outside; face coverings are required in line

In other developments, Chatham-Kent, Middlesex-London and Southwestern Public Health shift into the Orange-Restrict level, Haldimand-Norfolk and Huron Perth move to the Yellow-Protect zone and the Grey Bruce Health Unit moves into the Green-Prevent level.

For dealers, levels Orange to Green, share similar required practices:

  • Open for business no capacity restrictions
  • Retailers must have passive screening for patrons and active screening for staff
  • A safety plan is required to be prepared and made available upon request
  • Line-ups and patrons congregating outside must be managed by venue; 2 metres distance inside and outside; face coverings are required in line

To see all the Regions, their levels and the medical advice please see the Government’s full announcement here

https://news.ontario.ca/en/release/60489/ontario-activates-emergency-brake-in-thunder-bay-district-health-unit-and-simcoe-muskoka-district-healt

For past Dealer Alerts from the UCDA please visit here:

https://www.ucda.org/dealer-alerts

Update on COVID Restrictions

YORK REGION MOVES TO RED-CONTROL, LAMBTON FROM ORANGE TO RED

TORONTO, PEEL AND NORTH BAY-PARRY SOUND REMAIN IN LOCKDOWN

The Stay-at-Home Order is extended in Toronto, Peel Public Health Regions and North Bay-Parry Sound until at least March 8 while York Region moves to Red-Control on February 22, 2021 at 12:01 a.m.

In addition, Lambton Public Health will be moving from the Orange-Restrict level to the Red-Control level as the result of worsening public health trends in the region over the past week.

There are no changes for other regions. For more information them, see our February 16 Dealer Alert at  www.ucda.org/dealer-alerts/

RED – CONTROL

 York Region and Lambton as of Feb. 22, 2021 at 12:01 a.m.

  • Open for business but at 50 per cent capacity
  • A safety plan is required to be prepared and made available upon request
  • Retailers must post capacity limits publicly
  • Retailers must have passive screening for patrons and active screening for staff
  • Line-ups and patrons congregating outside must be managed by venue; 2 metres distance inside and outside; face coverings are required in line

STAY AT HOME – SHUTDOWN

The three remaining public health regions,

Toronto Public Health, Peel Public Health, and North Bay Parry Sound District 

 remain in shutdown, and the Stay-at-Home order and all existing public health and workplace safety measures will continue to apply to these four public health regions.

  • Dealers may be open by appointment only between 7:00am and 8:00pm and no delivery before or after those hours
  • 25% capacity limit
  • A safety plan is required to be prepared and made available upon request
  • Retailers must have passive screening for patrons (posted in door or window) and active screening for staff
  • Individuals must physically distance and wear a face covering
  • Test drives must be limited to no more than 10 minutes with a maximum of two people in the vehicle; if two people not in the same household are present in the vehicle during the test drive, all windows must be open

After returning to the Framework, public health regions will stay in their level for at least two weeks.