Disclosure requirements in dealer-to-dealer sales

Disclosure requirements in dealer-to-dealer sales

OMVIC has recently observed a lapse in compliance among certain dealers engaged in wholesale transactions who are failing to provide essential details pertaining to a vehicle’s history and condition. It is imperative to emphasize that, similar to consumer transactions, dealers involved in dealer-to-dealer vehicle transactions have an obligation to disclose specific information about the vehicle.

Additionally, any other pertinent details that could reasonably influence a prudent purchaser’s decision to acquire the vehicle must be disclosed. The disclosure obligations governing wholesale transactions are clearly outlined in Section 5 of the Code of Ethics.

In August 2023, OMVIC introduced a guideline outlining the registrants’ obligations in wholesale trades, which can be accessed here. Please refer to this guideline for further details on these requirements.

In dealer-to-dealer transactions, all parties are expected to use their industry knowledge and expertise to ensure that their transactions meet the requirements of the legislation and regulations.

Furthermore, all dealers are reminded to adhere to ethical practices and fulfill their duty to disclose. We take this matter very seriously and failure to comply with disclosure requirements may result in administrative action.

OMVIC’s dealer support team is available to assist dealers in achieving and maintaining compliance with the MVDA and Code of Ethics. Registrants who wish to contact dealer support can reach the team at 1-800-943-6002 ext. 4. Please note that messages are returned in priority sequence.