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Improving Protection for Consumers Buying Cars

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Improving Protection for Consumers Buying Cars

McGuinty Government Strengthens Motor Vehicle Sales Sector

Ministry of Consumer Services

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.

Background Information

Additional Resources


“Buying a car can be an overwhelming experience with so many things to consider. That's why we are improving protection for car buyers and lessees with the new MVDA. Consumers deserve to know exactly what they're getting before they decide to buy.”

Ted McMeekin

Minister of Consumer Services

“With the new Act, financial claim coverage has increased from $15,000 to $45,000. We are happy to support this legislation so that consumers are eligible to have an increased range of claims satisfied by the Motor Vehicle Dealers Compensation Fund.”

Alan Silverstein

Chairperson of Motor Vehicle Dealers Compensation Fund.

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