The Motor Vehicle Dealers Act (MVDA) effective January 1, 2010


The Motor Vehicle Dealers Act or “MVDA” was initially to be implemented on April 1, 2009, but the Provincial government delayed implementation of the changes to January 1, 2010. In these troubling economic and austere times, consumers require more protection than ever and cannot afford to be ripped off by unscrupulous Motor Vehicle “Dealers”. Caveat emptor (Latin – “Let the buyer beware”) always applies to consumers, but the changes in the MVDA should remind those wheeler dealers that they must respect this act and the others, that affect their ability to sell or lease new or used motor vehicles to the general public. The recent changes to the MVDA enhances consumer protection (one example: the dealer will now be required to provide full disclosure with respect to the history of the motor vehicle that you are leasing, buying from him or her).

The changes in the MVDA will require that dealers provide alot more disclosure about the motor vehicle that is for sale.   Dealers will have to provide complete disclosure with respect to the following:

  • Reveal any material fact that may influence a consumer to lease or purchase a vehicle.
  • The prior use of the vehicle (was it a taxi/limo, was it a police/emergency vehicle, was it a
    daily rental or a  leased motor vehicle).
  • Whether the vehicle has sustained damage as a result of a water damage or a fire.
  • Reveal whether the vehicle was registered in another Province/Territory or another country.
  • The total cost of repairs for any specific incident that exceeded $ 3000.00, if they know.
  • Reveal that the vehicle had been declared a total loss by an insurance company.
  • Report the negative branding classification of a vehicle (Irreparable, Salvage or Rebuilt).
  • If the motor vehicle is equipped with an anti-lock braking system that is not operational,
    a statement to that effect; or
    If any of the motor vehicle’s airbags are missing or are not operational, a statement to that
    effect; or
    If the motor vehicle requires repair in any of the following, a statement to that effect
    a) the engine, transmission or power train,
    b) the subframe or suspension,
    c) computer equipment,
    d) the electrical system,
    e) the fuel operating system,
    f) the air conditioning.
  • Under the MVDA, the defintion of “Dealer” has been expanded to include:
    General Dealer (used and new motor vehicles), Captive Finance Companies, Brokers,Wholesalers, Exporters,
    Fleet Lessors, includes short-term lessors (daily motor vehicle rental companies).

    In the present economy, every consumer will be forced to stretch their dollar as far as it can go (especially considering the McGuinty’s Liberals decision to implement the HST by harmonizing the 8% GST and 5% PST sales tax, effective July 1, 2010 which will increase the price of numerous products & services, that were once PST exempt, such as fuel for motor vehicles ) and as such, should understand their consumer rights, under the Consumer Protection Act, before buying or selling a used motor vehicle in Ontario.

    Before purchasing a used motor vehicle, it pays to do alittle homework and research. If you want to buy or sell a used vehicle, access the Ontario’s Ministry of Transportation website for information, before you buy or sell.

    Update: January 12, 2010 – see Ontario Government’s website, which states the following:

    Improving Protection for Consumers Buying Cars

    January 12, 2010 10:30 AM

    McGuinty Government Strengthens Motor Vehicle Sales Sector

    Ontario is providing consumers with improved protections when they buy or lease new and used cars.

    The province’s new Motor Vehicle Dealers Act, 2002 (MVDA) that came into force on January 1, 2010, requires dealers to:

    • Disclose a vehicle’s true condition and history before consumers sign contracts.
    • Adopt “all-inclusive pricing” when advertising new and used vehicles, including freight, dealer preparation and other miscellaneous charges.

    Consumers will also be able to cancel a contract within 90 days if a dealer fails to disclose certain key items such as accurate odometer-readings, the correct year or model, and the previous use of the vehicle.

    Improved protection from the Motor Vehicle Dealers Compensation Fund, with an increase from $15,000 to $45,000 in coverage, will also allow consumers to recover deposits should a dealership goes out of business.

    The Motor Vehicle Dealers Act, 2002 is administered by the Ontario Motor Vehicle Industry Council (OMVIC) on behalf of the Ontario government.

    Quick Facts:
    • Sales of new motor vehicles have generally been increasing since the beginning of 2009, following a sharp decline at the end of 2008.
    • The number of new motor vehicles sold increased in eight provinces in October 2009 compared to September 2009.

    Anti-Idling By-Law by Town of Inuvik (Vehicle Idling Over 30 Minutes= $100 Fine)


    see source

    Baby & Mother exposed to idling vehicle's harmful exhaust fumes - picture by Greenpeace

    In February 2008 the Mayor of the Town of Inuvik, Northwest Territories , Derek Lindsay, proposed to Town Council and passed an anti-idling by-law (BY-LAW #2441/PS/08) , which would fine driver’s of vehicles, who left their vehicles’ idling for more than 30 minutes, one hundred dollars ($100).

    This northern town, experiences temperatures’ of chilling record lows, as cold as – 56.7 °C (- 70.1 °F). As a result, residents are known to leave their vehicles running (example – for an hour at a time) to warm them up or to keep them warm.

    Many residents are not embracing this legislative change in their lives.

    Here are some the temperatures that Environment Canada has provided to the Town of Inuvik for Canadian Climate Normals 1971-2000:

    Record low °C (°F)Jan.-54.4
    (-65.9 F)
    (-70.1 F)
    (-59.1 F)
    (-51 F)
    (-18 F)
    (21 F)
    (21 F)
    (-4.2 F)
    (-31 F)
    (-51 F)
    (-58 F)

    Since the by-law was passed on March 12, 2008, none of the over 3,700 residents of the town of Inuvik have received tickets for contravening the anti-idling by-law, although warnings have been issued.

    Almost a year after Inuvik passed a bylaw to fine people who idle their cars and trucks downtown, the town’s mayor says some residents are still leaving their vehicles running anyway.

    Some residents in the Arctic community of 3,700 are ignoring the bylaw, Lindsay said, leading to complaints from people who work in offices along Mackenzie Road, the town’s main street.

    “They’re having to breathe in the exhausts from those vehicles,” he told CBC News. “Those fumes end up going inside the building.”

    The bylaw has been proven difficult to enforce, especially since Inuvik has been without a bylaw officer since the summer. Lindsay said the town is currently reviewing résumés for the position.