When you, as a registered dealer, sell or lease vehicles to other registered dealers there are regulations that must be followed. These are in the form of dealer-to-dealer disclosures and is a legal requirement under section 5 of the Code of Ethics regulations.
These regulations stipulate that the following must be disclosed in the contract:
- If the distance can be determined and if the vehicle is used, the total distance it has been driven.
- If the vehicle is a used motor vehicle and you cannot determine the total distance the vehicle has been driven, but can determine the distance the vehicle has been driven as of some past date, a statement of that distance and date, together with a statement that “the total distance the vehicle has been driven is believed to be higher.”
- If the vehicle is used and you cannot determine the total distance the vehicle has been driven, nor the distance the vehicle has been driven as of some past date, a statement that “the total distance the vehicle has been driven is unknown and may be substantially higher than the reading shown on the odometer.”
- If the vehicle’s odometer is broken or faulty, has been replaced, has been rolled back or is in miles.
- If any of the following is true, a statement to the effect that the vehicle was previously:
- Leased on a daily basis, unless the vehicle was subsequently owned by someone other than a dealer.
- Used as a police vehicle or used to provide emergency services.
- Used as a taxi or limousine.
- If the vehicle has sustained any damage caused by fire.
- If the vehicle has sustained any damage caused by immersion in liquid that has penetrated to the level of at least the interior floorboards.
- If there has been structural damage to the vehicle or any repairs, replacements or alterations to the structure of the vehicle.
- If the vehicle is equipped with an anti-lock braking system that is not operational.
- If any of the vehicle’s airbags are missing or are not operational.
- If the vehicle is materially different from the original or advertised production specifications.
- If the vehicle has two or more adjacent panels that are not bumper panels and that have been replaced.
- The make, model, trim level and model year of the vehicle.
- If any badge or other indication on the vehicle relates to a different model than the model of the vehicle.
- If the total costs of repairs to fix the damage caused to the vehicle by a collision or incident exceed $3,000, a statement to that effect and if you knew the total costs, a statement of the total costs.
- If the manufacturer’s warranty on the vehicle was cancelled.
- If the vehicle was declared by an insurer to be a total loss, regardless of whether the vehicle was classified as irreparable or as salvage under Section 199.1 of the Highway Traffic Act.
- If the vehicle previously received treatment in a jurisdiction other than Ontario (i.e., was registered in a different province or state), and if so, a statement indicating what jurisdictions the vehicle was registered in. This requirement does not apply if the vehicle has since been registered in Ontario for more than seven consecutive years.
- If the vehicle has been classified (branded) under Section 199.1 of the Highway Traffic Act, as irreparable, salvage or rebuilt, a statement as to how it was last classified.
- If the vehicle had been recovered after being reported stolen.
- Any other fact about the vehicle that affects the structural or mechanical quality or performance of the vehicle and that, if disclosed, could reasonably be expected to influence the decision of a reasonable buyer or lessee to buy or lease the vehicle.
