THERE ARE NO HIDDEN VEHICLE FEES ALLOWED ON THIS PRICE TAG
When shopping around for cars, it is essential to familiarize yourself with important terminology, such as all-in price advertising, to make an informed decision and protect your finances. All-in price advertising means that the price of any new or used vehicle advertised by a dealer must include all fees and charges they will collect for a cash sale, excluding HST and licensing. This ensures there are no hidden or additional costs that you may not be aware of. It is important to recognize that this only applies to cars that you purchase from OMVIC-registered dealers, not private sellers or manufacturers.
Here are two things to remember when it comes to all-in price advertising:
1) SHOW THE AD TO THE DEALER
By law, registered dealers are subject to all-in price advertising. You should never be charged more than the dealer’s advertised price so before you buy your next car, take a picture of the advertisement and bring it with you to the dealership. If they try to increase the price, simply show them the ad.
2) GET IT IN WRITING
It is important to write down all pre-purchase discussions with dealers and get pricing information in writing. Once you receive the bill of sale, be sure to check that the dealer lists all fees for charges such as freight, pre-delivery inspection, administrative fees and others. It is important to ensure that the final price is not more than the advertised price. If a dealer tries to charge extra fees, walk away, and report them to OMVIC.
There are exemptions to all-in price advertising, including:
1) Manufacturers (businesses engaged in manufacturing automobiles) do not have to comply with the Motor Vehicle Dealers Act, therefore this does not apply to them.
2) Ads for an “unfit” or sold “as is” vehicle will exclude the cost for safety certification. However, the ad must clearly state that the vehicle is “unfit” or sold “as is” by providing a disclosure statement. Additionally, if a dealer intends to offer safety certification, they must disclose the cost of the safety inspection and certification on the ad.
3) Joint ads placed by two or more dealers may have varying fees from dealer to dealer, such as administrative fees. These fees may be excluded from the all-in price ad; however, the amount of the varying fee must be disclosed on the advertisement.
To learn more about your rights as a consumer when it comes to all-in price advertising, visit OMVIC.ca and access the library of free car-buying resources. These resources can help you become a more informed consumer, so you remain protected throughout your carbuying process.
Buying a car can seem daunting, but it doesn’t have to be. OMVIC’s team of experts are here to support you by answering your questions. To reach OMVIC’s Consumer Support Services, call 1-800-943-6002.