Nova Scotians’ will wake up on April Fools Day to big news … and it’s no prank.
On April 1st the HST rate in Nova Scotia will drop from 15% to 14%.See: https://tinyurl.com/mwr2bch8
We will update our website come April 1 to reflect this for dealers who deliver vehicles to Nova Scotia buyers.
The HST rate is still 15% until April 1st.See: https://tinyurl.com/mrexbkuk
A Good News Story
In January 2024, the Ontario Government announced plans to move nine privately operated ServiceOntario locations into Staples Canada stores. The move came as part of a three-year pilot program that will continue until January 31, 2027, and took everyone rather by surprise.
The pilot project started with concerns, partly due to the limited information available about the project, and dealers grappling with concerns about reduced service. The UCDA tried for weeks to get more information from ServiceOntario and some assurances for our Members, but little was available at the time.
Meanwhile, the Government took quite a lot of criticisms over the moves in the media, although much of that press seemed more concerned with scoring political points.
Now that the dust has settled, it’s clear that some of these concerns were overstated. In fact, the Ontario Government is looking to increase the service hours and the types of services offered at some of these locations, to meet ongoing demand.
The Financial Accountability Office of Ontario (“FAO”) has released a report which analizes the financial impacts of the pilot project. The report looks at how the costs associated with the pilot project compare with the alternatives. The report compares what the costs would have been to continue to operate these locations at their original addresses, with the original services, as opposed to relocating to Staples Canada stores with expanded services.
The FAO anticipates that the plan will cost $800,000 more compared to if these locations were kept at their original addresses with the original level of service. However, when the increased level of services are taken into account, it’s estimated that the move has actually generated savings of $1.2 million.
In short, if all continues to go well, the pilot project should give Ontarians more service and value for their money.
Members interested in reading the full financial analysis report can do so by following this link: https://tinyurl.com/yeu23z4p
One more tool to fight auto fraud.
In minutes, any photo ID, drivers licence, Indian Status Card, passport, can be run on the system to check if the photo and ID are real and can be trusted.
All UCDA members can access this affordable tool at: www.ucdasearches.com/
By verifying both the individual and their ID, the risk of fraud is significantly reduced and it can also streamline your process by quickly and efficiently verifying customers’ identities.
The customer does not have to be at the dealership, since the verification is completed by the customer using the link.
The verification process involves five simple steps:
Take advantage of this program, strengthen your security measures and protect your bottom line. UCDA members pay only $3 per completed search.
The Use and Potential Misuse of Driver Information
We have all received an online advertisement that seems a little too tailored. It can feel like our digital selves have no privacy—but have you ever stopped to consider what your vehicle may know about you?
Many of those who have purchased a vehicle in the last few years will be familiar with the excitement of wanting to test out all of its new bells and whistles, only to have to spend a moment downloading the vehicle’s app onto your smartphone first. Many manufacturer’s apps will allow drivers to access useful features such as the ability to monitor their driving trips. Yet, the very same apps that provide drivers with access to a variety of features on their vehicle are also those that collect sensitive information about them.
An article recently published by the CBC explores the types of information that your vehicle collects about you and how manufacturers, and other parties, use it. This information can be put to good use, at other times to bad use, and in some cases even used for downright ugly purposes.
The Good
An explosion involving a Tesla Cybertruck rental outside of the Trump International Hotel in Las Vegas made headlines recently. Police were able to identify key details regarding the truck’s driver and his movements leading up to the crime, thanks to information provided to them by Tesla. The police were even able to determine that the explosives used in the perpetration of the crime came from a device in the truck, such as a bomb, rather than the vehicle itself.
The Bad
Although some of the information, collected by these apps, such as driving trip data, can be helpful in aiding drivers to improve their driving habits, other information, such as that relating to health, religion, or political views, can be irrelevant or otherwise plain intrusive.
The Ugly
In the worst-case scenario, the information collected by your vehicle can be put towards uses that work actively against your best interests. For example, the Federal Trade Commission has started to investigate some manufacturers, over allegations of collecting information on driving habits and selling this information to insurance companies and have it used against drivers when they submit an application for insurance coverage.
Vehicles are now more technologically advanced than ever. Although the allure of a new vehicle can be attractive, it may be worth reminding your privacy conscientious customers of some of the risks. At times, a, tried and tested used vehicle, without all the bells and whistles, may be more in-line with your customer’s needs.
Members interested in the full story can follow this link: Is your car spying on you? Here’s how vehicles gather your data | CBC Radio
The End of Paper Safeties
This is a reminder that The Motor Vehicle Inspection Station (MVIS) process for vehicle safety ceritifcation, as we have all known it for decades, ends on March 31, 2025.
On that date, all safeties in Ontario will be done digitally, in the DriveON program environment.
As the DriveON program reaches full implementation, the current MVIS program has started to phase out its services in preparation for its end on March 31, 2025.
After the MVIS program has ended, all safety and structural inspections must be completed, and certificates must be issued using DriveON equipment. Issuing MVIS certificates after March 31, 2025, could result in legal charges and revocation of your DriveON enrolment.
MVIS Stock
MVIS facilities were only able to order light-duty safety and structural inspection certificate books until January 31, 2025. No more MVIS stock orders will be processed as of now.
MVIS facilities are to return all unused MVIS certificates by mail to the address below:
Ministry of Transportation – MVIS unit301 St. Paul Street, 3rd Floor St. Catharines ON L2R 7R4
If requested by an enforcement officer, you need to surrender any remaining MVIS stock to them.
Refunds are offered for unused safety standards and structural inspection certificates returned to the MTO before April 30, 2025.
MVIS facilities must return all unused MVIS safety standards and structural inspection certificates along with a completed copy of Request for Refund form to MTO by April 30, 2025. You will not receive a refund for inspection certificates returned after April 30, 2025.
Refunds: Complete and submit the online Refund Request Form to avoid delays. If you have questions about the refund process please call 1-800-387-7736 Fax: 905-704-2574| MVIS email: MVIS.CIVA@ontario.ca
Important Dates
March 31, 2025 – Last day of the MVIS programApril 30, 2025 – Last day to get a refund for unused MVIS safety standards and structural inspection certificate books
If you need assistance with DriveON tablet setup, sticker orders, printer set up, or conducting a safety inspection on your DriveON tablet, please visit the YouTube channel at www.youtube.com/@DriveONHelpVideos.
For additional assistance you may call the Vehicle Inspection Centre Assistance Line toll-free at 1-833-420-2110, email info@driveonportal.com, or visit https://driveonportal.com/.
As we write this, the automotive industry enjoys a brief reprieve of 30 days from the punishing tariffs imposed on Canadian exports. This was announced by the U.S. administration on March 5th.
It does not feel like a reprieve however, it feels like a sword hanging over our heads, and when it falls, it’s still going to hurt. Indeed, the automotive industry will feel the sting more than most, for a vast variety of reasons.
Members are calling wondering what effect all of this will have on used vehicle exports to the U.S.
If a 25% tariff were to apply to vehicles which are “Products of Canada”, which is the language used in the operative orders, presumably it would clearly apply to a used vehicle built (new) in Canada. Such a VIN would start with a “2”. VINs starting with a 3 are made in Mexico, and they would suffer the same fate.
VINs starting with a 1, 4 or a 5 should be better off as they are built in the U.S. and might be saved from the effect of the tariff bite at the border. Even that remains unclear however, due to “rules of origin” which can get complicated.
We don’t envy the job of customs officials on either side of the Canada – U.S. border in the coming weeks. We continue to be gravely concerned about chaos at the border.
Équité reports that auto theft rates are down across the country, with 57,000 private passenger vehicles stolen in Canada last year as compared to 70,000 in 2023. Quebec has seen the most improvement, with theft rates for private passenger vehicles dropping from 15,000 in 2023 to 10,000 in 2024.
Ontario was close behind with its improvements, with auto theft rates dropping from 30,000 in 2023 to 25,000 in 2024. The provinces of B.C., Alberta, Saskatchewan, and Manitoba also saw improvements, with a combined 13% drop in thefts last year. Atlantic Canada did not see the same improvements, with 2,000 vehicles stolen in both 2023 and 2024. This data does not include theft rates for commercial vehicles.
Équité credits these improvements to the work that is occurring “behind the scenes” to combat the practice of re-vining and the spread of fake VINs. Équité declined to share the details of this work publicaly in order to make it harder for criminals to evade law enforcement agencies.
Vice President of Investigative Services at Équité, Bryan Gast, calls on the Federal Government to move quickly on its promises to update anti-theft regulations. The UCDA agrees with this call to action and hopes to see more collaboration and information sharing between government agencies and industry partners in the year ahead.
The UCDA continues to work with law enforcement agencies and industry partners, such as the Ontario Association of Crime Stoppers, to tackle the issue of auto theft. The UCDA continues to sponsor rewards of up to $300 for any tips that lead to the successful recovery of vehicles stolen from dealerships in Ontario. Individuals with information can anonymously call toll-free at 1-800-222-8477 or visit: https://tinyurl.com/3znru4za
The UCDA will also be attending the Central Canadian AutoTheft Association’s (CCATA) Annual Seminar, held in Saskatchewan, in June this year. The seminar will explore topics such as what auto manufacturers are doing to help prevent auto theft and provide insight into how law enforcement agencies collaborate in order to tackle auto theft.
This Just In
On March 5th, York Regional Police announced a 31% reduction in auto theft in 2024!
York Regional Police (YRP) is pleased to announce a remarkable 31% decline in auto thefts in 2024. This significant achievement was reached through a combination of investigative efforts of the Auto Cargo Theft Unit (ATCU), data-driven campaigns such as Autoguard 2.0 and strong partnerships with law enforcement agencies.
Throughout 2024, the ATCU has remained committed to curbing auto theft, particularly those occurring in residential driveways. Their unwavering efforts led to the recovery of more than 245 stolen vehicles and the successful disruption of criminal operations responsible for high-volume vehicle thefts across York Region and the Greater Toronto Area (GTA).
Two of their major investigative projects, Project Boa and Project Viper, played a pivotal role in this success. Through these initiatives, the ATCU, in collaboration with the Canada Border Services Agency (CBSA) and the Equité Association, dismantled sophisticated international criminal networks targeting high-demand vehicles like the Toyota Tundra, Lexus RX series, and Toyota Highlander.
Thieves employed advanced methods to steal these vehicles, including reprogramming ignition computers to create new keys. The stolen vehicles were then shipped overseas, with shipments routed through the Port of Montreal, heading to buyers in regions such as the Middle East, Europe, and Africa.
Project Viper and Project Boa resulted in a combined recovery of over 140 stolen vehicles and the laying of 228 criminal charges. In the course of these operations, officers executed several search warrants that revealed additional criminal activity, including the seizure of four firearms, illegal drugs, and Canadian currency.
Operation Auto Guard 2.0 – which ran from September to November, 2024 – focused on disrupting organized crime groups who steal vehicles with the intention of shipping them offshore. Building on the success of the initial operation, it once again incorporated a multi-pronged approach that included enforcement, active community engagement and proven crime prevention strategies. It led to the recovery of 15 vehicles worth approximately $487,000, with 17 people facing 127 charges.
Continuing our partnership with DesRosiers Automotive Consultants (DAC), the UCDA once again reached out to Members to take the pulse of the industry in Ontario.
This time, we asked members to give their valuable input on their experience in the used vehicle market in 2024 and to look forward to 2025.
Approximately 400 of our members responded to the survey. The majority of respondents were independent used car dealers (72.8%), but a sizeable number of new franchised dealers (27.2%) also took the time to provide their feedback.
Most dealers felt that there had been no change in their ability to source used vehicles (44%), while others (41.7%) felt that supply issues had worsened. Only a small number of dealers (14.2%) felt that their ability to source used vehicles had improved.
Used car dealers in particular, 45.3%, noted that sourcing vehicles had become more difficult. By comparison, only 34.3% of new car dealers felt that way. New car dealers continue to source most of their used vehicles (70.4%) from consumers, while auctions continue to be the most important source of used vehicles (46.2%) for used car dealers.
While new and used car dealers source their used vehicles from different places, they appear to be targeting the same vehicles—and are experiencing the same difficulties in obtaining them.
Dealers appear to be experiencing the most difficulty acquiring used vehicles in the 1 to 7 year old range.
Interestingly, the responses from used car dealers closely mirrored these results with close to half (42.6%) reporting “some difficulty” and a quarter (25.7%) noting “extreme difficulty” sourcing ‘newer’ used vehicles (1 to 3 years old).
Like new car dealers, used car dealers appear to be facing the most difficulty securing ‘middle-of-life’ inventory with half of respondents (50%) reporting “some difficulty” and close to a third (31.1%) reporting “extreme difficulty” securing used vehicles in the 4 to 7 year old range.
Despite the difficulties in acquiring used vehicles, dealers remain optimistic. On average, dealers expected that they would sell more used vehicles in 2025 than they did in 2024. New car dealers expect to sell 426 used vehicles on average this year (up from 395 in 2024). Used car dealers are also looking to ‘up their numbers’ expecting to sell 182 vehicles, on average, this year (up from 150 in 2024).
The survey also provides some interesting data on how customers are paying for their vehicles. The majority of customers (69.9%) are approaching used car dealers with cash in hand, or funding from their own sources, whereas over half the customers of new car dealers (55.6%) are purchasing vehicles through loans arranged at the dealership.
Overall, customers continue to prefer to complete their deals entirely at the dealership (55.6%), with some (36.4%) contacting the dealership online first before closing the deal at the dealership. Only 8.0% complete entirely online.
The shift to electric is slow.
Approximately 33.3% of new car dealers report that a small portion (1 to 5%) of their used vehicle sales were Battery Electric Vehicles (BEVs). Used Plug-in Hybrid Vehicles (PHEVs) appear to be slightly more popular with customers of new car dealers with almost half of these dealers (45.5%) reporting that PHEVs account for between 1 to 5% of their sales and a handful (20.5%) reporting that they account for 6 to 10% of used vehicle sales. Some new car dealers (9.1%) even reported that PHEVs account for over 10% of their used vehicles sales!
Used electric vehicles appear to be a bit more popular among customers of used car dealers. Over a third of used car dealers (35.7%) reported that BEVs account for 1 to 5% of their used vehicle sales. A significant number of used car dealers (19.6%) reported that BEVs accounted for over 10% of their used vehicle sales.
By contrast, PHEVs accounted for over 10% of used vehicle sales for 12.2% of dealers. Overall, BEVs were more popular with used car dealers, whereas PHEVs were more popular with customers of new car dealers.
Otolane dealer auction is offering a one-time $50 fee credit to UCDA members who:
• Are trying Otolane for the first time or
• Haven’t used Otolane in the past 60 days
Take advantage of this limited-time offer today.
Credits must be used within 30 days of being applied to your account.
For more details or to claim your credit, contact Cassie Matheson at 647-527-5347.
The UCDA & National Bank Celebrate Our 3rd Anniversary in Partnership!
In addition to their regular programs, a winter promo was recently launched by National Bank.
One immediate benefit was a Special Offer: Members registered with National Bank are eligible for a $200 bonus for each funded automobile contract until February 28th … NOW EXTENDED TO MARCH 31, 2025!!!
In addition, and until further notice:
• Enhanced Reserves:
– Increased reserves with fixed rates of 7.99% and higher (starting at $20,000).- No cap on reserves.
• Competitive Rates:
– Fixed Rates starting at 6.99% with reserves up to 3.55%.
– Variable Rates starting at 7.7% with reserves up to 2.70%.
• Quality Bonuses: Available, ranging from $350 to $1,000.
• Maximum Amortization: 96 months.
In 2024, our relationship with National Bank delivered, to participating members, special bonuses amounting to 4 million dollars in extra reserves!
Other highlights from 2024:
• Active members: More than 900 UCDA Members financed deals with NB through the year with an average of 705 monthly deals (+22% YoY )
• Market share: Up to 38% of all UCDA Member deals financed with NB monthly. Growth of 2.5% YoY in number of financed deals.
• Approval and booking: Approval rate of 51% and booking rate of 60%.
The partnership between the UCDA and National Bank presents a unique opportunity for UCDA members to capitalize on increased reserves and attractive bonuses while offering competitive financing options to customers.
Interested?
To register, you can speak with your UCDA Member Services Advisor by calling the UCDA 1-800-268-2598 or email: memberservices@ucda.org
You can also contact your local National Bank representative or reach out to National Bank by submitting your request through Dealertrack.
