Many of our Members have repair facilities, and many
perform motor vehicle safety inspections. Many Members
who are MVIS stations will have received the notice from MTO
announcing a change to “Passenger Transportation Vehicle”
(PTV) safety requirements.
The communication was perhaps unfortunate as it has
caused some confusion. It refers to vehicles that can carry
10 passengers or less and announces these will need semiannual safety inspections as of July 1, 2021.
Thanksgiving Day 2021
Thanksgiving Day
Dealers are legally required to close on Thanksgiving Monday, October 11th, unless their local municipality has passed a by-law exempting retail businesses from the requirement to close on statutory holidays. If in doubt, check with your local municipality’s by-law department.
Dealers may be open on Saturday, October 9th and, if they wish, on Sunday, October 10th.
The UCDA search facility will be closed on Thanksgiving Monday, but will be open as usual from 9:00 a.m. to 5:00 p.m. on Saturday, October 9th and 9:00 a.m. to 8:00 p.m. on Tuesday, October 12th.
On-line searches will be available over the Thanksgiving weekend at www.ucdasearches.com.
October 2021
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Used Vehicle Market Sourcing Issues & Price Jumps
Building on our survey earlier in the year, we once again partnered with our friends at DesRosiers Automotive Consultants to see what impacts the ongoing pandemic and the supply-side microchip issues have had on the used vehicle market.
Nearly 500 Members – including both independent used vehicle dealers, and the used vehicle operations of franchised new vehicle dealers – responded to our survey and offered their take on what the first half of 2021 had brought.
The used vehicle market outperformed the new vehicle market in 2020, but the first 6 months of 2020 were nevertheless difficult for the used vehicle dealer community. Respondents indicated that average sales in their stores fell from 102.7 units in the first half of 2019 to 86.5 units. However, this average sales figure bounced back to nearly the same pre-pandemic levels – 102.4 units on average – in the first half of this year.
New car dealers exceeded their 2019 sales volumes while independent used car dealers noted a smaller recovery – a dynamic directly related to access to vehicles in a market where demand often exceeded supply.
Ongoing supply issues facing both new and used vehicle dealers were a topic of particular concern in the first half of 2021 with dealers noting extreme difficulties sourcing pickups and SUVs. Comparatively, passenger cars were easier for dealers to get their hands on although difficulties were present there as well. In terms of age groups, newer vehicles – both 1-3 and 4-7 years old – were unsurprisingly harder to source than older vehicles.
Among the surveyed dealers, only 6.2% noted overall price decreases for their used vehicles. The largest category – at 38.3% – cited average price increases of 11% to 20%. On the more drastic end, 18.2% of respondents cited price increases in excess of 20%.
“The sentiments of used vehicle dealers paint a clear trend for the first half of this year” commented Andrew King, Managing Partner of DesRosiers. “Although sales volumes bounced back, limited supply led to clear increases in the prices of used vehicles as demand spiked and vehicles continued to flow south across the border.”
Information Source: DesRosiers Automotive Consultants Inc., and the UCDA
Fake Appraisals
We wrote about this topic two years ago in Front Line.
Last month we got a call from a Member worried the MTO might visit him to ask about an appraisal he did on a vehicle he never saw.
He had good reason to worry.
Members may know that they are able to appraise used vehicles for value on private transactions. The Ontario Government will accept a dealer’s appraisal for the value to apply provincial sales tax at a licence office when private sellers and buyers are doing a deal.
The Form can be obtained at any Driver and Vehicle Licence Office and can also be found here:
Be aware, however, that the government expects your honest opinion. If you artificially report low valuations or otherwise act improperly, it is feasible the tax authority may take issue with you.
We have heard of dealers being asked to conduct such appraisals based only on photographs. We urge Members to just say “No” to such a request. You need to see the vehicle and provide your best estimate as to value in good faith and in a proper manner.
The Form states that anyone who knowingly makes a false or misleading statement is guilty of an offence under the Ontario Retail Sales Tax Act. For the sake of your reputation, licence and what little money you are making doing this, any less than your best is not worth it.
Equity Games
Some dealers are willing to play games. Often, it’s to please the customer, to get the “deal done” or just to make the numbers work for bank financing or other considerations. It’s never a good idea and the game is not as fun as it might at first seem.
We all know about negative equity, and how some dealers will try to hide it by tinkering with vehicle trade-in or sale valuations. A little bit here, a little bit there. OMVIC has told dealers to stop that and be up front with the bank, and the consumer, about the hows and whys of negative equity deals. Honesty is the best policy.
In one recent situation, a dealer artificially lowered the sale price of a vehicle on paper to show a larger down payment, (in reality, the customer was putting nothing down) which had the effect of costing the consumer less HST. The customer’s trade-in had enough equity to cover the down payment being shown (used cars are worth a lot these days, as you know). Lower sale price = lower tax. Simple math right?
Not really. While it might have seemed a pretty slick idea at the time, and the customer loved it because he was saving tax, this experience came back to bite everyone when the customer’s new car was stolen. The insurance company was only willing to pay the customer the value for his vehicle … based on what the bill of sale showed he paid, which ended up being about $4,000 less than he “really” paid for it.
Now, instead of being hailed as a genius, the salesman is out of work and guess what?
Now the consumer does not think it was such a great idea after all and even though the dealer did it with the customer’s full knowledge, now the dealer has to worry about:
- An angry customer
- The Canada Revenue Agency
- OMVIC
Games like this are very short-sighted. They get a deal done at that moment, but the long game player knows the true value of a good deal is that it stays together and does not keep anyone awake at night. No deal is worth the alternative.
Play to win and avoid silly games.
Mandating Vaccines In The Workplace
We predicted, before Christmas, in Front Line, that 2021 would be the ‘year of the vaccine’. Looks like we weren’t far off.
Dealers are many things of course, entrepreneurs, taxpayers, community supporters. They are also employers and like many employers, dealers have to navigate uncharted waters right now when it comes to vaccines.
Some members have made the decision to require staff to be vaccinated and naturally wonder what the law might have to say about that.
As many of us know, there has been much talk lately about ‘vaccine passports’ and we also know, since September 22, 2021, in Ontario, proof of vaccine has been required to enter sporting events, concerts, restaurants and similar venues. That should give you a hint as to which way the wind is blowing on the legality of employers requiring employees returning to the office to be fully vaccinated.
It is not just a personal health issue, as we know medical experts have made it clear there is a real and present danger not just to the unvaccinated, but also to others with whom they come into contact, such as other staff, customers and suppliers.
Employees can show exemptions, for medical reasons, but the employer has the right to have their own medical professional assess such claims and, where physical attendance at the office, showroom or repair bays is required, accommodation is not really practical.
These issues are not without controversy. We have even had a couple of messages from dealers who are ‘antivaxxers’, but, on the whole, most dealers are concerned for the health and safety of their workplaces and businesses. They are also, rightly, concerned about their own liability if folks get ill due to their failure to develop a meaningful policy in this regard.
There are plenty of employment law firms working on such policies for all sorts of businesses right now and this will continue through the rest of 2021.
Here’s hoping by 2022 we can look back on this as a bad memory.
Buying Vehicles Privately
COVID-19 has affected virtually every aspect of our economy from the ‘gig’ to the showroom floor. Dealers are seeing dwindling vehicle supplies; with the scarcity of computer chips affecting new vehicle supply, the tight used vehicle market shows signs of further tightening in the months ahead.
Of course, that means prices will increase, but the more immediate problem is the need to source inventory in the first place.
We are seeing more and more of our Members turning to the non-wholesale market to find decent used inventory. Many are buying vehicles from private sellers for the first time.
Common questions can arise:
1. When buying a car from a private (non-dealer) owner, do we have to pay tax to the seller?
The answer is No, unless the seller is an HST Registrant (like you, i.e. a business). Ordinary citizens do not collect tax and would have no one to remit the tax to even if they did!
2. What bill of sale do we use, wholesale or retail?
Use a wholesale bill of sale when buying a vehicle from anyone. Also, make sure you complete a disclosure statement to cover the required 22 disclosures you need to get from a consumer about their car.
Of course, the UCDA can supply forms as needed.
3. Can a dealer, buying a car from a private seller, recover the HST “trapped” in the price paid to the seller?
No, dealers have not been able to do that since 1996 when the NOTIONAL input tax credit was taken away. Why are we mentioning this? Because lately we have been hearing reports that some dealers are trying to claim the notional tax perhaps not realizing they cannot successfully make such claims.
Ministry Postpones MVDA Reforms
Following online input from the UCDA, other industry and consumer groups and many individual dealers about proposals to amend the regulations to the Motor Vehicle Dealers Act, 2002, the Ministry of Government and Consumer Services has decided to postpone implementing its proposed reforms, for now.
There was enough concern and outright opposition to some of the so-called “red tape reduction” proposals that the Ministry has wisely decided to have a full consultation with all stakeholders sometime in 2022.
The UCDA agrees with this decision, as the longterm effects of some of the proposals did not appear to be well thought through. The UCDA’s biggest concern related to a vague proposal that would have seen changes to allow dealers to do business anywhere they wanted to, with no regard for the need for a proper dealer premises. Taken to an extreme, dealers would have been able to operate like curbsiders, save only for the need to carry an OMVIC registration card. Already some dealer premises are little more than large closets with a desk and a chair that rarely, if ever, get used.
The UCDA eagerly looks forward to the more extensive consultations next year. We don’t want to stand in the way of the trend towards a more digital selling process. But this move needs to be made in a way that continues to emphasize an increasingly professional and consumerfriendly industry.
UCDA and Childhood Cancer – Family Stories
In our last issue of Front Line, we wrote about the UCDA’s ongoing donations to charitable organizations supporting the families of children battling cancer. Following is the first in a series of stories told by the families of these children.
Candlelighters (Ottawa) … Two Families’ Stories
“Our middle daughter was diagnosed with Acute Lymphoblastic Leukemia. This diagnosis came one week after her baby brother was born. Candlelighters was quick to help us in our situation. They are unique where we truly see a direct connection and immediate effect from a donor’s donation to the family’s day-to-day need.
Without Candlelighters, our family would not have felt some of the stress lifted so soon after diagnosis and the intense treatment schedule. Thank you Candlelighters”.
From the mother of G
It’s a day we will never forget! The moment we heard the words “I believe your son has leukemia” have been etched in my husband’s and my brain forever! Then the questions flash though your mind, how can that be? How do we tell my child he has cancer? Will he survive? How do we live without him?
The fear and unknown can be almost crippling! S. was admitted to hospital and we really didn’t know what was going to happen. We didn’t get a chance to go home and pick up toiletries, we had nothing but the clothes on our back. It was very late when we were brought up to his room.
Since we had nothing, our nurse brought us a little care package. In it was toothpaste, toothbrush, deodorant, a chapstick, shampoo …. All the little necessities you need. The sticker on the bag said it was from the Candlelighters. They were there from the first night to lend a helping hand.
The next morning our interlink nurse asked if we knew who the Candlelighters were? We said “No”. We had never heard of them until the night before they gave us the bag with their name on it.
She then explained who they were and proceeded to pull out things. She gave us a couple of books about S’s cancer and a cancer nutrition cook book to read wanting to help us get through treatment; a binder to sort out the names of doctors, nurses and staff members who we would have to recall.
The binder also told me about the Candlelighters and the things they do to help cancer families. We received gas cards, red apron coupons for food while S was in the hospital, parking passes to save us the expense of parking.
S also collected Courage Beads – beads explaining that every bead meant something whether it’s chemotherapy, getting a lumbar puncture, needle poke, a night spent in the hospital. These beads tell your story in a most beautiful way. It is also extremely visual for people who just don’t understand what these kids go through. And it was all from the Candlelighters!
A week after S. was diagnosed the Candlelighters called us and asked if S. would like an iPad to help keep up with friends and help him with any homework he may have during treatment. S. was out of school for a year and a half, one of his teachers would FaceTime him nightly to do school work no matter what his blood counts were he couldn’t get sick over FaceTime and he was able to stay up to date on his school work.
The iPad was not only an entertaining toy but it helped him stay connected with the outside world. 2 weeks into treatment Candlelighters asked if we would like tickets to a concert or a hockey game in Suite Seats, a night to forget about cancer and have fun as a family. We have enjoyed a couple of shows and hockey games thanks to the Candlelighters, family outings we could never have afforded. We have great memories from those times.
S. was starting a new medication about a year into treatment. At the beginning, it wasn’t covered by insurance. The cost was $115.00 per dose, and Candlelighters paid it. I cannot tell you how much that helped. Candlelighters helped our family over and over again. They provide things that seem small, but make a big difference. They are always there, always willing to help wherever they can. It is so important and so valuable.
Thank you from S.’s parents and family
Curbsider Pays Big-Time
In one of the bigger curbsider fines we’ve seen in a long time, a gentleman by the name of Thambiratnam Vitheyatharan a.k.a. “Roy” had to answer to 24 counts of curbsiding in charges laid by OMVIC in Ontario Provincial Court.
Apparently, at one time, he ran a company called Roy Auto Brokers Inc. This may have led him into a business, selling vehicles, when he had no business doing so. He was not a dealer.
On May 25th he pleaded guilty and accepted a fine of $60,000 plus probation.
Labour Day 2021
Labour Day
Dealers are required to be closed on Labour Day, Monday, September 6th, unless their local municipality has passed a by-law exempting retail businesses from the requirement to close on statutory holidays. If in doubt, check with your local municipality’s by-law department.
Dealers may be open on Saturday, September 4th and, should they wish to, on Sunday, September 5th .
The UCDA search facility will be closed on Labour Day, but will be available as usual from 9:00 a.m. to 5:00 p.m. on Saturday, September 4th and from 9:00 a.m. to 8:00 p.m. on Tuesday, September 7th.
On-line searches will be available throughout the Labour Day weekend at www.ucdasearches.com.
August 2021
August 2021
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GOVERNMENT OPENS CONSULTATION ON PROPOSALS TO AMEND THE MOTOR VEHICLE DEALER ACT
The Ministry of Government and Consumer Services has released a consultation paper for public comment on proposals to amend the Motor Vehicle Dealers Act, 2002 and its regulations. The Act and regulations, which govern the activities of all dealers in Ontario, have been in place with almost no changes since 2010.
But a lot has changed in the industry since then. The digital world has exploded and dealers are very much a part of that now. There’s no question that amendments are overdue, but there will likely be disagreements on some of what the Ministry is throwing out there for public consultation.
For example, there are proposals to lessen the importance of doing business only from a dealer’s registered premises, such as allowing contracts to be signed and test drives to be taken at locations other than a dealership. There are proposals that could make significant changes to “As Is” selling and that could also increase the power of OMVIC to issue fines through something called Administrative Monetary Penalties (AMPs). We’ve written about our opposition to AMPs when they had been previously proposed in 2013 and in the pre-Covid days at the beginning of 2020.
The proposed changes can be found in the Ministry’s public consultation paper.
A few of the changes being explored in the consultation paper include:
- Allowing registrants to conduct business in locations outside of where they are registered to trade.
- Changing disclosures required in a sales contract under certain situations.
- No longer requiring registration certificates to be returned once a registrant leaves the motor vehicle industry.
- Requiring costs for repair, inspections and getting safety standards certificates to be included in the advertised price of “as-is” vehicles.
- Extending the time limit for dealerships to provide warranty sellers with required warranty documents and payments from 7 days to 30 days.
- No longer requiring registrants to list a phone number in certain advertisements.
- Increasing fines for curbsiding, and increasing the number of disciplinary options for addressing registrant noncompliance.
- Removing requirements for wholesalers, exporters and brokers to post their registration certificates and a sign at each place they are registered to trade. Or, to remove this requirement only for wholesalers, exporters and brokers who don’t sell directly to the public.
- Allowing exporters to trade from a home office or to only allow exporters who don’t sell directly to the public to trade from a home office.
- Refreshing the Code of Ethics to bring it in line with specific regulatory requirements.
- Cleaning up the MVDA by removing outdated sections carried over from an older version of the Act.
The UCDA will be preparing a detailed response to the proposals which we will submit to the Ministry and share with Members. Individual dealers and salespersons may also submit their feedback to the Ministry by emailing MVDA@ontario.ca, or by filling in the comment box at the bottom of the consultation paper’s web page.
All submissions must be received by September 17, 2021 at 11:59 pm.
MVIS Changes
Many of our Members have repair facilities, and many perform motor vehicle safety inspections. Many Members who are MVIS stations will have received the notice from MTO announcing a change to “Passenger Transportation Vehicle” (PTV) safety requirements.
The communication was perhaps unfortunate as it has caused some confusion. It refers to vehicles that can carry 10 passengers or less and announces these will need semiannual safety inspections as of July 1, 2021.
What it does not make clear is that it applies ONLY to vehicles transporting people for money i.e. a taxi, or rideshare vehicle.
What is a PTV?
Interestingly, to add to the confusion, many of these vehicles seem to be exempt by the terms explained in the notice. This includes exemptions for taxis, ride-share vehicles (if they are already licensed by their local municipality, as most are). Carpoolers, who only charge for gas, are exempt as well.
Really, when it comes down to it, it’s hard to imagine how many vehicles this will actually apply to. Since the responsibility rests with the vehicle owner, we do not see much exposure for our Members in any event. Vehicle owners should check “vehicle for hire” licensing in their local municipality to be certain they are exempt.
Leases and Safety
Many issues can arise during a lease, but what about at the end of a lease?
The Reluctant Lessee
Members often experience difficulty at the end of a lease, getting the lessee to cooperate in transferring the vehicle out of the dealer’s name and into their name with a safety inspection.
Not to put too fine a point on it … your lessee is avoiding you.
This concerns you because you don’t want them to continue driving around in a vehicle registered in your name.
Your lessee may have other concerns. For example, the vehicle is 3 or 4 years older than when you first leased it out. You have no idea how well it’s been maintained and you sure don’t know what it’s going to take to safety it. Neither does the lessee, but he does know he has a vehicle plated he can drive right now, so why risk it!
What can the lessor do to force the issue? Not much. All the lessor can do is ask the license office to show the status of the vehicle as “SOLD”, but it will remain registered in the dealer’s name.
In most cases the lessor has no permit in the file with the lessee’s signature accepting transfer. Lessors should consider obtaining that at the start of the lease, so they can avoid this problem at the end of the lease. A “true copy” (front and back) of the permits can be given to the lessee while you hold the originals.
A dealer could send a letter by courier or registered mail to the reluctant lessee and advise them that if they do not bring their vehicle back for a safety and accept plate and registration by a certain deadline, the vehicle will be transferred into their name without a safety.
This will cause it to go into their name “UNFIT” and “UNPLATED”. The lessor could then use the signed permit to transfer the registration.
The Frugal Lessee
Dealers have been calling us a good deal lately asking what to do with a consumer who insists that they can use their own safety at lease end. Why? Because they do not want to pay the dealer to do it, and they have probably found a cheaper option at a third party garage.
Understandably, dealers are concerned if they proceed to register and plate the vehicle using someone else’s safety. A dealer might end up liable if safety problems arise on a vehicle they have not inspected.
Believe it or not, many (most?) leases are silent about the nitty gritty of what is supposed to happen at end of lease with respect to safety and who is to pay.
This is what the UCDA Lease Agreement says in the event an option to purchase at lease end is exercised:
“I will be responsible for the cost of a Safety Standard Certificate … and all repairs needed to obtain it.”
We tell dealers they do not have to agree to accept a third party safety at lease end. Their concerns about liability are real and while it is understandable that consumers will try to save a buck or two, when it comes to safety, you get what you pay for.
Charity
It’s easy to forget, amidst our fight with COVID-19, that other battles are being waged in other health wars.
These battles are quiet, because they involve children, but are no less harrowing.
The UCDA’s Charitable Giving Committee has been making donations, on behalf of UCDA Members, to childhood cancer causes throughout Ontario for several years now.
The organizations tend to be smaller, local, grassroots charities that make a difference to the families and those children who are engaged in life and death struggles with this horrible disease.
We have heard directly from families through the charitable organizations we support about the difference our Member’s contributions have made. Thus far, in 2021, we have made significant donations to 7 such causes including:
- Help a Child Smile in Brantford, serving a wide area
- Childcan in London and area
- Candlelighters in Ottawa and area
- Candlelighters in Simcoe County and area
- Ontario Parents Advocating for Children with Cancer (OPACC), Barrie
- Northern Ontario Families of Children with Cancer (NOFCC)
- Kids Kicking Cancer based in London
The UCDA has, over the years, supported summer camps for kids with cancer; gift baskets in the holiday season that brighten the lives of not just the children fighting cancer, but also their siblings; funded hospital equipment and supplies so a child can be at home when the disease takes an upper hand and the family can be with them, paid for gas cards and hospital parking passes. All of this, all over the Province, because we have UCDA Members all over the Province and cancer knows no borders.
It is hard and emotionally draining work, but so necessary, especially during these hard times, when donations are down across the board.
In the coming issues of Front Line, we’ll share some heartwarming stories about kids with cancer and their families that the UCDA has been able help.
Annual General Meeting
The UCDA Annual General Meeting will take place at 4:00 p.m., Thursday September 23, 2021, at the Hilton Doubletree Hotel, 925 Dixon Road in Toronto. A review of the Association’s performance in 2020 and the election of a slate of Directors will take place.
Dealer Quiz
- Many dealers ask if dealer auctions are regulated by OMVIC. They are not, but are exempt under the Motor Vehicle Dealers Act (MVDA), as long as they:
a) Keep their offices neat and tidy
b) Ensure only registered dealers (or those with regulatory exemptions) can sell and buy there
c) Keep their books and records at an OMVIC approved location
d) Ensure that sellers comply with MVDA regulations governing dealers even if the seller
is exempt
e) Promptly reply to emails - For both online and physical dealer auctions, OMVIC has the power to insist that the auction:
a) Provide a bulletin board for OMVIC’s own use
b) Provide a list of persons allowed in the bidding area or allowed to bid online
c) Use only approved bills of sale
d) Pay a monthly fee to OMVIC to cover its costs overseeing auction operations
d) Allow OMVIC free advertising space - Vehicle wreckers are exempt from the MVDA.
True or False? - Insurance companies who write-off a vehicle are exempt from the MVDA when they want to sell it so long as:
a) The vehicle is sold for “parts only”
b) The vehicle value is below $3,000
c) They sell it to or through a motor vehicle dealer
d) They do not register it in their name
e) The vehicle is exported - A registered charity must be registered under the MVDA and regulated by OMVIC if selling a vehicle in accordance with their charitable cause:
True or False?
What You See May Not Be What You Get
Tesla has apparently not availed itself of the opportunity to give its side of this story out of B.C., but it is an interesting cautionary tale about the difficulties of buying and selling used high tech road vehicles like a Tesla.
A consumer purchased a used 2019 Tesla Model 3 from a Vancouver dealer.
The ad said the vehicle had autopilot as an option. However, after buying it, the consumer discovered it did not have the autopilot feature they thought they had paid for.
Tesla has designed a fully-connected vehicle that allows upgrades and options, which can be downloaded directly to the vehicle.
The company wants to control the buying experience and is able to continue to make money long after the original sale.
However, that can create problems in after-market sales, especially if you are buying the used vehicle from a third party.
Apparently, even the dealer felt Tesla had confused matters when they appeared to confirm the feature was included prior to the sale.
In fact, it does not have the option and it will cost $4,000 to obtain it. Naturally, the consumer thinks the dealer should pay that. Also, naturally, the dealer sees things differently and while they did offer to take the vehicle back and give the customer a refund, they will not agree to pay for the option.
Dealers would be well advised to confirm the option actually exists on the vehicle at the time of sale, and advise the consumer, in writing on the contract, that such options are fully within the control of the vehicle maker, not the dealer.
It’s BAAACK – Luxury Vehicle Tax
As we warned about, in Front Line last year, the Federal Government hinted at a Luxury Vehicle Tax to be implemented in an upcoming budget.
Well, the difficult terrain presented by running a minority government, and the even bigger impediment of a pandemic got in the way of all that, but with the unveiling of the latest budget on April 19, the proposed tax is back.
In the first budget Canada has seen in two years, Prime Minister Trudeau and his team plan to introduce a Luxury Tax on new vehicles valued at more than $100,000, and boats worth over $250,000.
The Luxury Tax is set to come into effect on January 1, 2022.
The tax is calculated at the lesser of:
- 20 per cent of the value above threshold ($100,000 for cars and personal aircraft; $250,000 for boats) ; or
- 10 per cent of the full value of the luxury car, boat or personal aircraft.
The tax would affect all new passenger vehicles including sports cars, coupes, sedans, station wagons, SUVs, passenger pick-up trucks, and passenger vans and minivans that seat less than 10 people. HST will be calculated on the price of the vehicle including the Luxury Tax. Used vehicles won’t be subject to the tax.
Motorcycles and certain off-road vehicles such as ATVs and snowmobiles, racing cars (used solely for on-track or off-road racing) and RVs are exempt from the Luxury Tax. Also exempt are off-road, construction and farm vehicles; certain commercial vehicles such as some trucks and cargo vans; and public sector vehicles such as buses, police cars, ambulances, and hearses.
Answers
- The answers are b) and d). Only registered dealers and others with statutory exemptions may purchase or sell vehicles at wholesale auctions. It is the auction’s responsibility to ensure that everyone selling at the auction, including non-registrants selling under a statutory exemption, comply with MVDA regulations.
- The answer is b). At the request of the registrar, auctions must provide information listing the persons allowed in an auction’s bidding area, and the persons who are allowed to bid in an auction through electronic means.
- True. Wreckers or recyclers are exempt from the MVDA in their normal course of business of wrecking and recycling vehicles. However, if they sell vehicles, they must be registered as a dealer.
- The answer is c). In order to be exempt from needing a dealer license, insurers who sell total loss vehicles MUST sell the vehicle through a registered dealer.
- False. Registered charities are exempt from needing a dealer license if they sell vehicles in the course of collecting funds for their charitable cause.
2021 Civic Holiday
CIVIC HOLIDAY
The UCDA office and search facility will be closed on Monday, August 2nd for the Civic Holiday, but searches may still be performed online at www.ucdasearches.com.
The search facility will be open, as usual, on Saturday, July 31st, from 9:00 a.m. until 5:00 p.m. and from 9:00 a.m. to 8:00 p.m. on Tuesday, August 3rd.
The Civic Holiday is NOT a statutory holiday and dealers may choose to be open on August 2nd if they wish.
Ontario Moving To Step Three In Roadmap To Reopening
ONTARIO MOVING INTO STEP THREE IN ROADMAP TO REOPENING
Thanks to careful crisis management, high vaccination rates and lower infection numbers, Ontario will move into the third phase of the three-stage plan to reopen Ontario for Business on Friday, July 16, 2021 at 12:01 a.m. This is earlier than originally anticipated by almost a week and is a hopeful sign that we are truly getting ahead of this pandemic.
Having said this, we are clearly not out of the woods yet so dealers must remain vigilant and continue social distancing practices, sanitizing and masking protocols.
For more details on this announcement, please visit https://news.ontario.ca/en/release/1000501/ontario-moving-to-step-three-of-roadmap-to-reopen-on-july-16
STEP THREE
- Capacity restricted to the number of people in a facility able to maintain at least two meters (six feet) distance from every other person in the facility
- Signs posted to state capacity limits for the facility
- Test drive restrictions
- members of the public must be actively screened
- all participants in the test drive must wear a mask or face covering in a manner that covers their mouth, nose and chin
For more detailed and sector-specific guidance please visit https://www.ontario.ca/page/enhancing-public-health-and-workplace-safety-measures-provincewide-shutdown
Ontario Moving Into Step Two In Roadmap To Reopening
ONTARIO MOVING INTO STEP TWO IN ROADMAP TO REOPENING
Ontario will move into the second phase of the three-stage plan to reopen Ontario for Business on Wednesday, June 30, 2021 at 12:01 a.m.
It is fantastic news for everyone in Ontario and reflects falling numbers of COVID-19 positives and rising numbers of those who have first and second vaccinations.
For more on this Plan, please visit https://www.ontario.ca/page/reopening-ontario
For dealers this will mean you may move to 50% capacity while maintaining all other safety protocols. 50% capacity is calculated by taking the total square metres of floor area accessible to the public, not including shelving and store fixtures, dividing that number by 8 and rounding the result down to the nearest whole number.
STEP TWO
- The public must not be permitted in areas where products are neither sold nor displayed for sale
- 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
- Test drive restrictions
- the test drive must be limited to no more than 10 minutes,
- a maximum of two people, including up to one sales representative, may be present in the vehicle, boat or watercraft during the test drive, and
- if two people who are not members of the same household are present in the vehicle during the test drive, any windows in the vehicle, boat or watercraft must be opened at all times.
The province could remain in Step Two for as long as 21 days to evaluate any impacts on key public health and health system indicators.
For more detailed and sector-specific guidance please visit https://www.ontario.ca/page/enhancing-public-health-and-workplace-safety-measures-provincewide-shutdown
Canada Day 2021
Canada Day
A reminder that dealers are legally required to be closed on Canada Day, Thursday, July 1st, unless their local municipality has passed a by-law exempting retail businesses from the requirement to close on statutory holidays. If in doubt, check with your local municipality’s by-law department.
Members can access UCDA online services on Canada Day at www.ucdasearches.com.