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:
UCDA Annual General Meeting
The United Car Dealers Association’s 2025 Annual General Meeting will take place at 4:00 p.m. (E.S.T.) on the 19th day of June 2025 at the Sheraton Toronto Airport Hotel & Conference Centre, 801 Dixon Road, TORONTO, ONTARIO.
A review of the Association’s performance in 2024, appointment of auditors and other business will take place.
Please find enclosed with this issue of Front Line, a Letter from our President, our Notice of Annual and General Meeting of Members, and our Proxy form with postage-paid return envelope.
In the event you cannot or do not plan to attend, we ask that you consider filling in the Proxy Form, tick the line beside Vote on #1, sign and complete below, and send it back to us at proxy@ucda.org, by fax at 416-232-0775 or by mail in the postage paid envelope included.
Hyundai Vehicle Allegedly Stolen Within Seconds
A story coming out of London, England, may signal the continuance of a worrying trend. Elliott Ingram leased a Hyundai Ioniq 5 through a dealership. During the term of his lease, his vehicle was stolen from his driveway. Upon reviewing the CCTV footage from his security cameras, he was surprised to learn that the vehicle was taken in less than 20 seconds. The thief used a device, readily available online, to mimic the vehicle’s electronic key. Thankfully, the vehicle was recovered shortly afterwards.
Elliott claims that he was not informed of this security risk, and claims that he could have taken additional measures such as “installing a secondary immobilizer or using a steering lock” had he known about the issue. He is now threatening to take legal action unless he is compensated for his losses.
Given that the vehicle was a lease, it’s not clear that Elliott would be permitted to install a secondary immobilizer. Further, it’s not clear that this issue is limited to just Hyundai vehicles. A relay attack works on many vehicles that use a “push-to-start” system.
There have been stories of thieves using similar devices, known as “keyless repeaters”, which launch radio or “relay” attacks, to steal vehicles within Canada.
Keyless repeaters are typically equipped with four “modules” which makes these thefts possible. One module for communication with the car, another for communication with the key fob, as well as two additional modules for communication between the “repeaters”.
Keyless repeaters are able to establish a connection between the car and the key fob using two “repeaters”. Thieves hold one repeater near the car and another repeater as close as possible to the victim’s house to reach the key fob located inside. This tricks the car and key fob into thinking that they are near each other, which allows the thieves to unlock the car door and start the engine.
For its part, Hyundai says that it is working hard to combat thefts and will be introducing software and hardware updates that will help prevent them.
The question for all manufacturers at this point, given all the attention being paid to this issue for a couple of years now, is why this has not been done already. What liability might manufacturers face in such circumstances given that the vulnerabilities, and the problems, are well known?
There are a few ways that dealers and consumers can take matters into their own hands to protect themselves from relay attacks. One way is to maintain good security habits, such as by remembering to keep your keys in a faraday box. Vehicle owners can also install a signal- blocking device into their key fobs. This device blocks the key’s signal when it is not in use.
While vehicle theft is trending downwards in Canada, thanks to the efforts of law enforcement authorities, it’s never a bad idea for dealerships to educate their staff and their customers on good vehicle security habits.
Members interested in reading the full article can do so by following this link: https://tinyurl.com/y59mau6s
LESS FRAUD … MORE TRUSTii
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. ucdaseaches.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: Sign in to www.ucdasearches.com
Click on the “Trustii Identity Verification Service” button at the bottom of the page
Fill in the customer’s name, cell phone number, email address and click “submit”
The customer receives a link, takes a photo of their ID, and a selfie using their own cell phone.
Results are available within minutes at www.ucdasearches.com Take advantage of this program, strengthen your security measures
and protect your bottom line. UCDA members pay only $3 per completed search.
National Bank Special Anniversary Bonus!
In celebration of Spring and the 3rd year of the UCDA / National Bank partnership, a special $200 bonus is in place now until the end of May for each funded contract!
In addition, from April 17, 2025 and until further notice:
- Quality bonus up to $1,200 (limited time) for financing amounts starting at $20,000 or more! No cap on reserves!
- Earn more with our Quality Bonuses* Limited time Quality Bonus $7,500 to $12,499 $12,500 to $19,999 $20,000 or more Up to $500 $750 $1200
- Competitive Rates**:
- Fixed Rates starting at 6.99% with reserves up to 55%
- Variable Rates starting at 20% with reserves up to 2.70%
- Maximum Amortization: 96 months
In 2024, our partnership with National Bank delivered, to participating members, special bonuses amounting to 4 million dollars in extra reserves!
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 at 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.
* Bonus subject to change upon resubmission.
**Terms and conditions apply.
Continuing Our Commitment to Safer Communities:
Partnering with Crime Stoppers
We are thrilled to announce the continuation of our valued partnership with Crime Stoppers! We are entering our second year.
We entered the partnership to support the reduction of the auto theft epidemic, which affects not only private individuals but also dealerships. This collaboration is about fostering a safer community for everyone. By working together, we encourage people to anonymously share information about auto thefts, leading to successful investigations and a stronger sense of security.
Rewards up to $300, sponsored by the UCDA, are granted for tips that directly lead to the successful recovery of vehicles stolen from dealerships in Ontario.
We are honoured to be one of the sponsors of the annual Ontario Association of Crime Stoppers conference from June 6-8, 2025 hosted by the Near North Crime Stoppers in North Bay. This pivotal event brings together up to 200 law enforcement professionals, community leaders, volunteers and organizations from across the province to discuss, strategize and drive new initiatives aimed at enhancing community safety and crime prevention. We will be there!
We are also sponsoring Crime Stoppers of Hamilton and their ongoing initiatives dedicated to enhancing community safety.
As they prepare to take on another pressing issue—Automobile Theft—they recognize the UCDA’s leadership in the used car industry and the critical role we play in protecting dealerships and vehicle owners across Ontario.
We have collaborated with them on their Auto-Theft Awareness & Prevention Campaign—a proactive initiative designed to educate communities, deter criminal activity, and safeguard businesses and individuals from theft-related losses.
The UCDA is proud to be a sponsor of this Campaign.
Crime Stoppers of Hamilton offers tailored crime prevention insights from specialists to UCDA members in Hamilton, helping them protect inventory and customers. They’ll also set up booths at member locations to engage customers and promote crime prevention strategies. The local mascot, ”Hammertown Hero”, is available for all ages.
If you’re a member in Hamilton interested in the Crime Stoppers of Hamilton offer, email memberservices@ucda.org
As always, individuals that have information can share anonymously at 1-800-222-8487 or online at ontariocrimestoppers.ca/submit-a-tip/ submit-a-tip
FINTRAC And Money Laundering
Despite our vigorous opposition, it seems the Federal Government has plowed ahead with yet another layer of needless bureaucracy for dealers to contend with. Much of this haste was driven by a burning desire in Ottawa to try to appease the U.S. administration’s obsession with border security.
They must have hoped it would make some kind of difference down there. It actually won’t make much difference on either side of the border, as it is a solution to a problem that never existed in the first place, but no one is listening to that kind of logic these days.
Effective April 1, 2025 all dealers who finance or lease passenger class vehicles (or other vehicles valued over $100,000) will be expected to report to FINTRAC.
A Financing or leasing entity is a person or entity that is engaged in the business of financing or leasing.
A financing or leasing entity is subject to the Act and associated Regulations when they engage in the financing or leasing of:
- property for business purposes, other than real property or immovables
- property valued at $100,000 or more, other than real property or immovables
- passenger vehicles in Canada
A passenger vehicle is a motor vehicle – other than an ambulance, a hearse, a motor vehicle that is clearly marked for policing activities, a motor vehicle that is clearly marked and equipped for emergency medical response activities or emergency fire response activities or a utility truck – that is designed or adapted primarily to carry no more than 10 individuals on highways and streets.
Likely in recognition that this was all done so fast that no one really knows what it all means, FINTRAC have signaled that, for this first year, they are really going to focus on education rather than enforcement, which is the only good news we have for you on this at this point:
“In the first year following the coming into force dates, FINTRAC will put emphasis on engagement, outreach and guidance activities related to new regulatory obligations in order to foster greater awareness and understanding amongst new reporting entities. This will include industry consultation to develop guidance so new reporting entities will be well positioned to implement and mature their compliance programs.”
As we reported in our January Front Line, we submitted our responses to the consultations and raised the following points, all of which were ignored, it seems implementation was sped up to April when it was supposed to be October 1, 2025.
The UCDA submitted its comments on the proposed Regulatory changes and made points on the:
- lack of consultation
- short window for comments (Nov. 30 to 30, 2024)
- short window for implementation (by October 2025)
- fact 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
The FINTRAC link contains useful guidance on how you can set yourself up for compliance and avoid the fines and penalties for failing to do so by 2026.
OMVIC Education For Dealers
OMVIC is introducing a required education process for all motor vehicle dealer and salespeople registrants. While the UCDA supports registrant education, and increasing professionalism in our industry, we do have concerns which we are addressing with them while this is still in the planning stage.
OMVIC’s Continuing Professional Development (CPD) Program Plan
Launching April 1, 2026, all dealers and salespeople renewing on or after July 1, 2026, must complete OMVIC’s CPD program prior to renewal. Dealers will have to do this every year and salespeople every two years. CPD will be accessible online on desktop, mobile, and tablet.
We are concerned that OMVIC says the course will take 4 to 6 hours to complete. We feel that is too long. We also do not know how much it will cost.
We understand the passing grade will be 80%, but you will have the opportunity to redo modules, so you can successfully complete the course without failing.
Grandfathered Registrants
Those registered before January 1, 2010, who renew after July 1, 2026 and who have not completed the Key Elements course offered by Georgian College, will need to do so prior to their renewal. Our understanding is Key Elements takes hours of self- study and costs at least $175.
Another area where the details are still being discussed revolve around dealer and salespeople registrants who have never had any education before. Concerns revolve around the cost, the time, and the difficulty of the test (with an 80% pass requirement, what happens to those who fail).
The UCDA has years of dealer education experience and, until recently, taught new applicants the mandatory OMVIC course. We can deliver these courses quicker and more cost effectively.
OMVIC is offering a webinar on May 21, 2025, at 1 p.m. To Register: https://tinyurl.com/spzpnx8v
Show The Flag
Every dark cloud has a silver lining. Tariffs and the current negativity from the U.S. President’s administration is that dark cloud, but the silver lining is a renewed pride Canadians have for themselves.
We have rediscovered who we are and our many great accomplishments as a nation, separate and unique from the United States in so many important ways.
We here at the UCDA celebrate the fact we are a Canadian association, a Canadian employer, in a vibrant and healthy Canadian used vehicle industry. We stand on guard for that industry and our members.
We want to help our members celebrate their Canadian business identity as well, send a signal to their customers and our friends to the south, that we are Canadian businesses and proud of it!
Just in time for Canada Day! Each member of the UCDA will shortly receive their very own Canadian flag courtesy of the UCDA.
Our hope is you will find a way to display it at your dealership to remind everyone that this is the nation where we make our living, support our families, pay our taxes and keep the country running.
Please display it with as much pride as your UCDA logo and rest assured … THE FLAG IS MADE IN CANADA!!!
TARIFFS AND USED VEHICLES
A Legal Opinion
Not surprisingly, most of the commentary in the media and elsewhere about Trump’s tariffs, focus on new vehicles and their production.
We wanted to know what effect the tariffs would have on used vehicle exports from Canada to the U.S., so we turned to a Chicago international trade law firm for a legal opinion.
Then we had to separate some of the technical jargon, which is what trade law is mostly all about, to get to the core message. This is what we can tell you:
Used vehicle exporters will have to pay tariffs on used vehicles that are less than 25 years old.
The free trade agreement, otherwise known as the Canada United States Mexico Agreement or CUSMA came into effect on July 1, 2020. It covers vehicles imported on or after that date AND (i) the vehicle has a 75 per cent Canadian, U.S. or Mexican value content; (ii) certain “core” parts in the vehicle need to qualify as “originating” in the CUSMA region; (iii) the producer needs to source 70 per cent of its steel and aluminum in North America; and (iv) the producer needs to achieve “high-wage” labour value content requirements.
The CUSMA contains no distinction between new and used automotive goods. All importers seeking CUSMA preferential treat- ment for automotive goods must meet the CUSMA’s automotive rules of origin provisions.
- Passenger vehicles and light trucks covered by CUSMA are eligible for U.S. content reductions on duty. If you are able to identify U.S. parts wholly obtained, produced or substantially transformed present in the vehicle, that level of content is eligible for duty-free treatment. In theory, for example, a qualified vehicle with 50% qualified U.S. parts could reduce the tariff from 25% to 12.5%. It remains unclear how easy (or difficult) it will be for exporters to obtain the parts content breakdowns, presumably from manufacturers, or the effect of aftermarket parts added during the working life of the used vehicle.
- This exemption is entirely at the discretion of the S. Secretary of Commerce who is not obliged to grant it AND there is presently no mechanism in place for this application.
- There has been much talk of VINs that start with a 1, 4 or 5 i.e. “made in the United States” being exempt. However, the math is not that simple, because the auto tariffs do not specifically exclude
U.S. origin goods (i.e. substantial transformation). Our legal opinion states that there is no such exemption and the analysis is focused on U.S. content as described above.
For more information from U.S. Customs and Border Protection see: https://tinyurl.com/3xk55tnz or https://tinyurl.com/muyhvxbu
Time will tell how this all affects cross border trade in used vehicles, but as we have said from the beginning, our feeling is it will put a virtual end to the efficient export of used vehicles from Canada to the U.S. for the foreseeable future.
The numbers just do not add up to a profitable enterprise for either the seller or the buyer in such an environment.