OMVIC OMVIC Trade-Ins, Liens and Vehicle Registration 1

Question 1

Under the MVDA 2002 and OMVIC's Code of Ethics, what must a dealer disclose to a customer regarding a trade-in vehicle valuation?

Accepted Answer

Only the final allowance offered for the trade-in

Answer

The dealer must disclose the trade-in allowance offered to the customer clearly and in writing as part of the purchase contract.

Question 2

What is a 'lien' on a motor vehicle in Ontario?

Accepted Answer

A financial claim registered against the vehicle by a creditor, typically a lender who financed the vehicle

Answer

A lien is a legal financial claim registered against a vehicle, most commonly by a financial institution that lent money to the original buyer to purchase it.

Question 3

Before accepting a used vehicle as a trade-in from a consumer, what is a registered dealer's responsibility regarding liens?

Accepted Answer

The dealer must conduct or facilitate a lien search to identify any outstanding financial claims against the vehicle

Answer

Dealers have a duty to identify outstanding liens on trade-in vehicles through a proper lien search before assuming ownership or crediting the trade-in value.

Question 4

If a trade-in vehicle has an outstanding lien, how must a registered Ontario dealer handle the lien payout?

Accepted Answer

The dealer must pay out the lien to the lender directly and apply any remaining equity to the customer's transaction

Answer

Dealers must pay out outstanding liens to lenders directly to clear the title, and any equity above the lien belongs to the customer.

Question 5

In Ontario, the Used Vehicle Information Package (UVIP) must be provided by the seller in which type of transaction?

Accepted Answer

In all private sales of used motor vehicles between individuals

Answer

Ontario law requires a UVIP (issued by the Ministry of Transportation) to be provided by the private seller in every private used vehicle sale.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC OMVIC Trade-Ins, Liens and Vehicle Registration 1