Ontario Car-buyers — All-in Price Advertising is Your Right!
“As the regulator of vehicle sales, OMVIC wants Ontarians to know they have a right to all-in price advertising when buying a new or used car,” stated John Carmichael, OMVIC CEO. “A right that should give them confidence and eliminate any uncertainty that there won’t be extra fees tacked on to an advertised price once they get to the dealership.”
Ontario made All-in Pricing the law in 2010 meaning vehicle dealers today must include all fees and charges they intend to collect (except HST and licensing) in any advertised price; but research conducted by OMVIC reveals only one third of consumers know hidden fees are illegal. This is why OMVIC has launched a province-wide campaign to educate car-buyers of this important right.
“The transparency provided by All-in Price Advertising is undoubtedly making the car-buying process more enjoyable for consumers,” explained Carmichael. “But we also know there is not 100 per cent compliance with this law, which is not only unfair to consumers, it gives non-compliant dealers an unfair advantage over those dealers whose advertised prices include all fees and charges.” This is why OMVIC has launched the consumer awareness campaign. “If consumers know they have a right to All-in Price advertising, they are able to protect themselves should they encounter non-compliant advertising.”
The campaign, with ads on TV and radio, online, and social media, makes it clear that car-buying is more fun than ever. The TV ads feature dogs relishing car rides; tongues lapping the air; fur flying in the wind — visuals of simple joy that support the message: Buying a car? The fun is back! Ontario made All-in Price advertising the law for Ontario car dealers — no more hidden fees. All-in Price advertising — it’s your right!
“While the message delivery is cheerful, the outcome will have an important effect,” said Carmichael. “Consumers will know what to expect, avoid dealers who break the law and instead buy vehicles from those who provide the fair and transparent advertising required by Ontario’s consumer protection legislation.”
Understanding All-in Price Advertising
If a Registered Dealer advertises a price for a vehicle (new or used), that price must include ALL fees and charges the dealer intends to collect. The only additional fees a dealer can charge are HST and licensing. Note: licensing refers to the actual cost of vehicle registration and plates (it cannot include extra fees added by the dealer).
What is an advertisement?
An advertisement is an inducement to buy or lease a vehicle. This includes ads:
• In print (newspapers, magazines, etc.)
• On the internet (dealer site, online marketplace, etc.)
• On social media
• On radio or TV
• On signs (including those in or on a vehicle)
What must be included in an All-in Price advertisement?
Fees or charges that must be included in an advertised price include:
• PDI-PDE (pre-delivery inspection/expense)
• Administration (Admin) fee(s)
• Government levies (air tax, etc.)
• Safety and e-test (unless the ad contains a mandated “Unfit Vehicle” or “As-Is Vehicle” statement)
If a dealer intends to charge for products or services they have already pre-installed on a vehicle, those costs must also be included in the advertised price. This includes, but is not limited to:
• Nitrogen/tire protection package/locking wheel nuts
• Security or theft deterrent products/services (etching, etc.)
Note: While all fees must be included in an advertised price they must be itemized individually on the contract.
Vehicle Manufacturer Advertising
OMVIC does not regulate vehicle manufacturers; therefore advertisements placed by manufacturers do not have to comply with the Motor Vehicle Dealers Act and all-in pricing is not required in manufacturer ads. That said, some manufacturers voluntarily comply with the all-in pricing provision and commendably provide transparency to consumers.
For more information on all-in price advertising, visit omvic.ca.