Less Fraud, More Trustii

The UCDA is always committed to enhancing the value of membership by identifying and implementing programs and services that provide tangible benefits. Recently, we forged a partnership with Trustii, a company dedicated to combating fraud within the automotive industry.

The UCDA receives numerous calls from members who have been victims of customer fraud, particularly involving vehicle financing. One effective strategy to reduce the likelihood of such fraud is the verification of photo identification.

This is where Trustii’s services come into play. The UCDA is now offering an ID verification service at https://www.ucdasearches.com/, in conjunction with our well-known search capabilities, including AutoCheck, History, and Lien searches.

Trustii’s ID verification service offers several advantages:

  • Automated biometric verification, requiring the customer to provide valid photo ID and confirm their identity through a photo of their face
  • The fastest processing times in the market, with the majority of checks completed within 10 minutes
  • Secure and entirely electronic forms to process the id verification
  • Comprehensive national and local databases including gover-nment databases

To initiate an ID verification search, simply log in to the UCDA portal https://www.ucdasearches.com/ and provide the email address of the individual you wish to verify. The Trustii system will then send an email to the customer, requesting that they capture a photo of their identification and a selfie using their mobile device.

The Trustii system employs artificial intelligence (AI) to compare the photo on the ID to the selfie taken by the customer. AI also verifies the authenticity of the identification, ensuring its non-fraudulent nature. The verification results will be available within minutes of the customer completing the process.

Members are only charged once the verification is successfully completed.

Pricing

UCDA Members pay $3, non-members pay $3.99.

More Good News From DDR

The Ministry of Public and Business Service Delivery and Procurement (MPBSDP) has asked the UCDA to pass on the following new developments on Digital Dealership Registration (DDR) to its members:

Date: Monday, January 27th, 2025

Subject: DDR New Enhancements

We’re excited to bring you the latest DDR news!

Our ministry, in partnership with the Ministry of Transportation (MTO), is committed to adopting digital practices and technologies to deliver simpler, faster, better services to the people and businesses of Ontario. MPBSD has completed an update to DDR that expands services dealerships have anticipated.

Effective January 27th, 2025, dealerships can complete the following transactions online:

Transfer Into Your Dealership

• Dealerships can now intake vehicles from individuals, joint registrants, companies, leasing companies and other dealerships into their inventory.

Registration to Fleet RINS

• New and Used vehicle registration to Fleet (F) registrants / F type Registrant Identification Numbers (RINs), enabling more transactions within DDR.

Expansion of Existing Plate Attachment

• Allow for vehicles to be plated with an existing plate, on step 3 of 8 (NVR) and step 4 of 9 (UVR), independent of whether a vehicle was traded-in and detached as part of the trade-in flow.

Interested dealerships can visit https://tinyurl.com/ecs6a56h

If you have any questions, please contact us at: dealershipoffice@ontario.ca

Sincerely,
The Digital Dealership Registration team
Ministry of Public and Business Service Delivery and Procurement (MPBSDP)
 
 

If You Want a Deposit, the Customer Has to Sign a Bill of Sale

If a customer provides a deposit without signing a bill of sale, the customer is entitled to a full refund of their deposit, should they decide not to follow through with purchasing a vehicle. Bottom line, it makes little sense to accept a deposit without a signed purchase agreement.

For Members that use UCDA Bills of Sale, the process for making a claim to a deposit on a signed contract is simple and outlined right on the back, under section 3 (section 4 for older versions of the bill of sale):

“ACCEPTANCE BY PURCHASER:

If you refuse to take delivery of the vehicle when it is made available to you, or on the delivery date specified in this agreement, the dealer shall notify you, by registered mail, sent to your last address known to the dealer, that the vehicle is available for delivery.

If you fail to take delivery of the vehicle within seven (7) days of signed receipt of this notice, or if the notice is returned to the dealer unclaimed, the dealer may resell the vehicle with no further notice to you. When the dealer resells the vehicle, you agree to pay the dealer for all losses the dealer incurs.

Any deposit or vehicle traded-in may be kept by the dealer to apply against any loss suffered by the dealer. If the loss is greater than the total of the amount paid as a deposit and the value of the trade-in, you agree to pay the difference to the dealer. The dealer agrees to provide you with a detailed accounting of the resale and a list of expenses incurred. The dealer shall maintain the right to use any legal means available to collect any sum owing by you under this agreement.”

In other words, dealers are required to send the customer a letter, by registered mail, urging the customer to follow through with the vehicle purchase. If the customer fails to take delivery of the vehicle within 7 days of receipt of the letter, the dealer is entitled to re-sell the vehicle and itemize all their reasonable damages incurred in doing so.

The dealer can only claim damages if the dealer has actually spent this money and can justify the spending. Once the vehicle sells, the dealer must provide the customer with a detailed written accounting of all reasonably incurred damages.

What about “Deposit Agreements”? Can you have an “Agreement to Agree”?

Some dealers will take a deposit, and either issue a receipt for the sum received, or draft a short invoice noting the date, the vehicle and deposit received.

This is not a bill of sale.

In order to take a deposit against the purchase of a motor vehicle a dealer must have a fully completed and signed bill of sale. That is law in Ontario. If a consumer asks for their deposit back when there is no signed deal, because they changed their mind, you would have to refund the money, which defeats the purpose of taking a deposit in the first place obviously.

Finally

If you want to be able to make a claim to a customer’s deposit, follow the process listed on the UCDA Bill of Sale. It’s crucial that you have the customer sign the bill of sale—a deposit “agreement” is not enough. Members interested in purchasing bills of sale, or with questions for the legal department about deposits, can contact the UCDA at (416) 231-2600 or toll-free at 1-800-268-2598.

Tariffs

We dodged a bullet … or did we?

Unless you are completely off the grid, you have been following the bizarre developments over the last several days and weeks with stunned amazement. The proposal coming from the new American administration was as unprecedented as it was potentially damaging to the economies of Canada and Ontario … a 25% tariff on virtually all goods exported from Canada to the U.S.

In order to make this happen, President Trump would have called the import of fentanyl and illegal immigrants across our shared border an “emergency” to get out from under what is otherwise a binding and legal free trade agreement our country has with the United States called The United States-Mexico-Canada Agreement (USMCA).

For now, it’s not happening. Like Mexico, Canada was able to cobble together a reprieve of sorts involving promises about increased border security, that resulted in a delay in implementation of the tariffs for ONE MONTH.

What happens in March is anyone’s guess … it’s fair to say only one person really knows that and he sits in the Oval Office of the White House at present.

Here is what our Executive Director, James Hamilton posted on Linkedin in the days prior to February 3rd (when these tariffs were first supposed to start):

“I’m not an economist so I will leave the analysis of who this will hurt, where and why to others, but one silver lining might be used vehicle prices going down and supply going up.

For years now, the strong US dollar up against our weaker one, made buying used cars in Canada a no-brainer for US dealers. They could practically pay retail prices here and still turn a profit down south.

A 25% tariff on exported goods, if it does include used vehicles as I suspect it will, would put an immediate end to vehicle exports, leaving those units here for dealers and consumers in Ontario and the rest of Canada to buy.

Let’s hope, with all the other real pain this will cause our economy, that people still have money to buy them … whatever they cost!”
 
 
 

 

Estate of a Deceased Person Buying and Selling Vehicles

UCDA Members are often confused when approached by someone looking to sell a vehicle belonging to a deceased person.

Administrating the “Estate” of someone who has died can be complicated, and many people are unsure what to do. Having said that, we have an aging population, and these circumstances are becoming more and more common.

In order to get a handle on the situation, you should first ask certain questions and request certain documents.

The first question you should ask is “who owned/owns the vehicle”? The answer to this question will determine how you proceed.

Joint Ownership

If the vehicle was registered jointly, such as by a husband and wife, and the husband passed away, all the widow has to do is go to a licence office, with the death certificate, and have the vehicle registered solely into her name. She is then free to sell or trade-in that vehicle like any ordinary individual would.

If the deceased owned the vehicle and it’s only registered in their name, the process becomes more complicated.

The next question you should ask is “did the deceased have a Will”?

Sale with a Will

If the deceased had a Will, then you will need a copy of the death certificate, the Will, and a court endorsed “Certificate of Appointment”, also known as “probate”, recognizing the validity of the Will and the Executor(s) appointed under it.

The Executor under the Will or the “Administrator with a Will” is the person who can sign the contract and legally sell you the vehicle. Where there are multiple Executors, it is prudent to confirm that all Executors agree to the sale. You should keep copies of these documents in your file.

The cheque or payment for the vehicle should be made payable to the “Estate of ******** (the deceased)”. The Executor will take the cheque, deposit it into an Estate bank account, and then distribute the funds to beneficiaries entitled to the money under the Will. This part has nothing to do with you.

Sale without a Will

If the deceased passed away without a Will, then someone will need to obtain a Court Order that recognizes a person as the “Administrator without a Will”. This person can then legally sell Estate assets, like vehicles. Again, it is important that you keep copies of all documents (death certificate and Court Order) for your file and make the cheque payable to the “Estate of ******** (the deceased)”.

Estates and “Trade-Ins”

Lately we have received questions from Members regarding accepting trade-ins of vehicles owned by deceased family members.

Dealers should be hesitant to accept trade-ins on behalf of an Estate, even if it is for a vehicle that the Executor wants to “purchase” on behalf of the Estate. This is because the purpose of an Estate is to generally dispose or get rid of assets—not acquire new ones.

Instead, it is preferable that the dealer get the Executor to follow the above process, depending on whether there is a Will or not, to transfer the vehicle to the individual entitled to the vehicle in accordance with the deceased’s wishes. Once the beneficiary has ownership of the vehicle, they can put it towards a trade, just as any ordinary individual might.

Power of Attorney

One final note. We often get asked about Powers of Attorney (POA) in cases where a vehicle owner has died and had a POA. These documents are of no assistance when dealing with a deceased person. POA’s only assist when the person is still alive.

1st Annual UCDA Golf Tournament

We are excited to announce the First Annual United Car Dealers Association Golf Tournament in support of the fight against childhood cancer: https://tinyurl.com/3dpbejmy

This special event promises to be a day of camaraderie, friendly competition, and networking, set against the stunning backdrop of Osprey Valley Golf Club where the Canadian Open will be hosted less than a month before the UCDA tournament, in Alton, Ontario.

Event Details

Date: July 9, 2025

Time: 8:30 a.m. Registration and 10:00 a.m. Shotgun Start

Location: Osprey Valley Golf Club, 19131 Main St., Alton, Ontario

https://www.ospreyvalley.com/

Whether you’re an avid golfer or a casual participant, it should be a fun and exciting day for all skill levels. This is the perfect opportunity to connect with other UCDA members, enjoy a round of golf, and maybe even win a prize.

Sponsorship Opportunities

Showcase your business to a focused group of industry professionals with our variety of sponsorship packages.

See here for details: https://tinyurl.com/hpnreh8t

Registration

We look forward to seeing you there for a day of fun, networking, and golf! Save the date and find Registration Information here:

https://tinyurl.com/nhujveks

UCDA And OMVIC Meet With The Auctions

Close on the heels of OMVIC’s Notice to Auctions in October of 2024 of their Key Obligations, https://tinyurl.com/aj74ahe7 the UCDA’s Executive Director, James Hamilton and OMVIC’s Chief Consumer Protection Officer, Jeff Donnelly commenced a series of meetings in January with auctions that deal primarily with wholesale buying and selling.

OMVIC is currently considering “best practice” recommendations to auctions on how to ensure they have received and/or reviewed required disclosures by listing dealers. This is an effort to create some consistency in the industry and ensure that auctions are receiving the required disclosures from those entities listing vehicles for sale on their platforms.

An open dialogue helped all the parties to understand OMVIC’s role, concerns and objectives as well as those of the industry. OMVIC wants to see a more uniform approach across all auction platforms with lien, accident and material fact disclosure. The UCDA wants to see a streamlined arbitration approach that treats both sellers and buyers fairly, resolving disputes quickly. Time is money and justice delayed is justice denied. A big dealer must be treated the same as a little one.

Where arbitration fails to resolve legitimate concerns, due to timelines or other reasons, dealers always have legal rights granted by Ontario law. Dealers that have to choose that route to resolve their differences may resort to OMVIC or the courts, without needing to worry about negative reaction from any auction.

The expectation is that these talks will continue and we will all work together to ensure proper declarations are being made at the auctions, arbitrations are run fairly and efficiently, and buyers and sellers can continue to transact business with the confidence that their transactions are in accordance with the highest ethical and regulatory standards in Ontario. Ontario enjoys some of the most forward-looking wholesale protections in Canada after all.

With thousands of vehicles moving through our auction system in Ontario, the real number of serious complaints is low, but as with most things, there are always areas where improvements can be made.

It was gratifying to hear some of the amazing work being done at the auctions to improve their processes, due diligence and the overall dealer experience, and we trust that work will continue.

All parties recognize, in this new age of digital sales and on-line auction formats, that the need for due diligence and frank disclosure is more important than ever. Buyers rely heavily on fulsome fact sharing, and what is not said can be as important as what is said. The days of being able to see the car run down the lane, listen for an engine knock or see what dash lights are on are over; buyers need good photos and detailed, honest descriptions to put a number on a bid.

The UCDA fully supports OMVIC’s renewed focus on the wholesale side of the marketplace. It reminds all of us that today’s wholesale piece is tomorrow’s consumer sale.

 

Feds Deliver A Lump Of Coal To Dealers For Christmas

As UCDA members may have seen in Dealer Alerts late last year, the Canadian Federal Government wants to extend reporting and record-keeping requirements to vehicle leasing and financing for business purposes, passenger vehicles and goods valued above $100,000.

The $100,000 threshold trigger does not even apply to vehicles, so a vehicle worth less than $100,000 would still require reporting!

Basically, they want to treat vehicle and finance dealers like banks, requiring various record keeping and reporting under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and requiring reporting through the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) system.

All this while there is no evidence this problem even exists in Ontario. We have never seen a massive prosecution or enforcement in the automotive industry involving money laundering or terrorist funding. This has all the earmarks of a solution in search of a problem and worse, an exercise in optics that will add costs, red tape and increase the price of vehicles for consumers.

The UCDA has submitted its comments on the proposed Regulatory changes and made points on the:

  • lack of consultation
  • short window for comments (Nov. 30 to Dec. 30, 2024)
  • short window for implementation (by October 2025)
  • act the $100,000 trigger should apply to passenger vehicles too
  • negative effect this will have on many small businesses in Ontario that engage in vehicle leasing and financing

We urge you to make your voices heard by contacting your local MP: https://www.ourcommons.ca/members/en

Lemon Law Arguments Leave A Sour Taste

Quebec introduced a lemon law in 2023 that supposedly allows consumers to apply to court to have their vehicle declared a “seriously defective automobile”. Some of the usual suspects think Ontario needs lemon laws too. Would lemon laws really leave consumers better off?

The CBC recently published an article outlining one such call to action. The article tells the story of Carl Cameron, a consumer who purchased a new Nissan Altima in July 2024. Shortly after his purchase, Cameron experienced a number of issues with his vehicle such as his cellphone not being able to properly pair with the vehicle, the tire pressure sensor going haywire, and the radio randomly turning off and on.

Cameron took the vehicle back to the dealership. Although the dealership initially had some problems diagnosing the issue, it seems they have since put in an order for a replacement navigation unit and have put him into a loaner at their own cost.

The article then goes onto criticize the current Canadian Motor Vehicle Arbitration Plan (CAMVAP) system for being manufacturer-funded and voluntary in nature; however, these criticisms are reductionist at best.

Ironically, the concerns the consumer raises in the article would likely not qualify as “serious defects” in any event, so it’s just as well the dealer is actively helping him even though they did not build the unit!

Not All Lemon Laws are Created Equal

A creature of U.S. law, lemon laws can differ greatly from jurisdiction to jurisdiction, but most are intended to cover serious defects with vehicles. The CBC’s article heralds Cameron as the ‘poster child’ for lemon law reform in Ontario; however, it is not clear that Cameron’s issues relate to serious defects with the vehicle that leave it unfit for use or substantially diminish its usefulness.

Manufacturers and Dealers Already Have a Market Incentive to Keep Customers Happy

The article also downplays the fact that both the dealership and the manufacturer are working closely with Cameron to fix his vehicle and allow him to drive around, at their own expense, in the interim—they have an incentive to keep their customers happy if they want to stay in business.

CAMVAP is Quick and Efficient – A Court or Tribunal System May Not Be

The article is quick to criticize CAMVAP and calls for the introduction of lemon laws, but fails to consider what that should look like.

Are proponents of lemon laws asking for the ability to apply to courts to have their vehicle declared as “seriously defective”, as in Quebec? Are they looking to introduce a tribunal system for vehicle purchases, similar to the Landlord and Tenant Board for residential rentals?

Any approach comes with its pros and cons. For example, the court system in Ontario has faced severe backlog since the COVID-19 pandemic. The Landlord and Tenant Board tribunal has faced similar criticism with some applicants having to wait months, and in some cases years, to have their matter heard. By contrast, the CAMVAP process takes about 70 to 90 calendar days.

It’s early days yet, but we have yet to see if the Quebec system fares any better.

“If it Ain’t Broke, Don’t Fix it”

The current system is working. Manufacturers and dealerships already have reason to make their customers happy—otherwise someone else will. Dealers and manufacturers who want to stay competitive will continue to work with customers to resolve their issues, accommodate their needs, and participate in voluntary programs such as CAMVAP. In other words, “if it ain’t broke, don’t fix it”. Unnecessary changes may lead to a worse system overall.

Members interested in reading the full CBC article can do so by following this link: Ontario man calling for provincial lemon law, after new car starts having issues after 4 days | CBC News: https://tinyurl.com/8h4yj6ph

UCDA/DesRosiers Survey

The UCDA, in collaboration with DesRosiers Automotive Consultants, is conducting ongoing research to analyze the Canadian new and used vehicle market.

Your participation in a brief survey to gather valuable insights into your dealership’s experiences within the 2024 market is greatly appreciated.

Take the survey HERE