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Q: Becoming a registered used car dealer in Ontario, Canada ( Answered 5 out of 5 stars,   1 Comment )
Question  
Subject: Becoming a registered used car dealer in Ontario, Canada
Category: Business and Money > Small Businesses
Asked by: czech_man_canada-ga
List Price: $10.50
Posted: 04 Feb 2005 15:41 PST
Expires: 06 Mar 2005 15:41 PST
Question ID: 469041
I'm trying to find out, in points, what's required by the province (or
the federal gov.) to become a registered user car dealer. I'm thinking
of becoming one, so I can bid on "dealers only" auto auctions in
Ontario, Canada.

In my case I'm looking to buy less then 10 vehicles a year so I really
need to know first how much hassle it will be to get it started.
Here is what I need to find out (in points, not long paragraphs :):

- The requirements
- What are the initial fees 
- What are the annual fees
- Anything else you think is useful for me

All should be related to used cars dealer, not new cars. Thanks in advance.
Answer  
Subject: Re: Becoming a registered used car dealer in Ontario, Canada
Answered By: hummer-ga on 04 Feb 2005 18:28 PST
Rated:5 out of 5 stars
 
Hi czech_man_canada,

Briefly, it doesn't matter whether you are a new car dealer or a used
car dealer, registration and certification are the same. The same is
true whether you trade ten cars are fifty, the regulations are the
same. I've copied and pasted the relevant sections in the following
links (trying to keep it short!), but please click on the links for
full details.

>>>   Overview

A QUICK LOOK AT ...
REGISTRATION UNDER THE MOTOR VEHICLE DEALERS ACT
http://www.omvic.on.ca/reginfo.htm

>>>   The requirements

 Q2  How many vehicles can an individual or company sell without being
registered as a dealer?
A     None. 
 Q3  What kind of registration is required for selling used vehicles?
For motorcycles?
A     There are no distinctions
http://www.omvic.on.ca/registration_faqs.htm

Becoming a Motor Vehicle Dealer
- Application for Registration under the Motor Vehicle Dealers Act - Business
- Application for Registration under the Motor Vehicle Dealers Act - Individual
- Photo identification document for every Individual Application
- Proof of eligibility to work in Canada for every Individual Application
- Wholesale/Leasing Affidavit (if applicable)
In addition, you must include:
* Copy of Business (Trade) Name Registration (BIN) or Master Business
Licence (MBL) if you are going to operate under a business name (for
example, ABC Auto Sales), which is customary for sole proprietors and
general partnerships...
* Copy of Limited Partnership Declaration or Articles of Incorporation
(if applicable)...
* Copy of the Municipal Permit...
* Proof ownership of proposed business location...
* Copies of Vendor Permit (RST number) and GST Account (BN number).
http://www.omvic.on.ca/dealers.htm

>>>   Registration Kit Package

* Click here to download a Zip file containing the Registration Kit Package.
http://www.omvic.on.ca/ZIP/Registration.ZIP

>>>   What are the initial fees 

Payment of $500 Ontario Motor Vehicle Industry Council (business)
Payment of $175 Ontario Motor Vehicle Industry Council (individual)
Payment of $345 to the Motor Vehicle Compensation Fund 
http://www.omvic.on.ca/dealers.htm

>>>   OMVIC Automotive Certification Program

Dealer applicants will be required to have successfully completed the course...
http://www.omvic.on.ca/certification_faqs.htm

Professional Standards - OMVIC Automotive Certification Program
http://www.omvic.on.ca/certification.htm

OMVIC Certification Program: 
All new vehicle dealers and salespeople must enroll into this course
prior to registering with OMVIC, and successfully pass the course
within 60 days of enrollment.
http://www.thecai.on.ca/omvic.htm

>>>   Anything else you think is useful for me

Click on "Information for Dealers:
Used Car Dealers Association of Ontario
4174 Dundas St. West
Toronto, Ontario. M8X 1X3
Telephone: (416) 231-2600 or 1-800-268-2598
Fax: (416) 232-0775
email: in.fo@ucda.org

The Used Car Dealers Association of Ontario 
Click on "Buying a Vehicle" in the lefthand column.
Buying Privately:
http://www.ucda.org/

The Used Car Dealers Association of Ontario 
Dealer Education:
http://www.ucda.org/dealereducation.html

Inspections:
http://www.omvic.on.ca/enforcement.htm

Code of Ethics:
http://www.omvic.on.ca/code_ethics.htm

Dealer Plates:
http://www.omvic.on.ca/pdf/dealer%20plates.pdf

Compensation Fund:
http://www.omvic.on.ca/compfund.htm

Buying and Selling a Used Vehicle in Ontario
http://www.mto.gov.on.ca/english/dandv/vehicle/used.htm

Links:
http://www.omvic.on.ca/links.htm

I hope I've been able to help get you off to a good start. If you have
any questions, please post a clarification request *before*
closing/rating my answer and I'll be happy to reply. In regards to
annual fees, please get in touch with your local municipality, they
will be in the best position to give you accurate information for your
location.

Thank you,
hummer

Google Search Terms Used:

ontario "used car dealers" requirements fees

Request for Answer Clarification by czech_man_canada-ga on 05 Feb 2005 09:49 PST
If I may clarify something, the docs talk about proposed business
location being a requirement, now since I will never have more then
one car at the time and that one car will not even be plated in
Ontario, does it still apply ? In other words do I need a location to
be registered as a dealer ?

Clarification of Answer by hummer-ga on 05 Feb 2005 11:04 PST
Hi czech_man_canada, 

I would say yes, you do need a location for the following two reasons.

1) In order to register your business, you will need a location.

A Guide to Registering your business name in Ontario:
The following information is required for business name registration:
  * name and address of the business
  * description of the business activity to be carried out.
http://www.cbs.gov.on.ca/mcbs/english/273a_3ea.htm

2) The OMVIC needs to know that you've complied with local regulations.

In addition, you must include:
"Copy of the Municipal Permit authorizing you to operate an auto
dealing business in your specific location. From those municipalities
not issuing permits we require a copy of a Zoning Letter."
http://www.omvic.on.ca/dealers.htm

This is a good link for you to know about:

Ontario Business Connects:
http://www.cbs.gov.on.ca/obc/english/4TJTBS.htm

Please let me know if you have any other questions.
hummer
czech_man_canada-ga rated this answer:5 out of 5 stars
Thanks for your time.

Comments  
Subject: Re: Becoming a registered used car dealer in Ontario, Canada
From: hummer-ga on 05 Feb 2005 12:53 PST
 
You're welcome, czech_man_canada, thank you and good luck with your new business. 
Sincerely, hummer

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