Practice Test GeeksOMVIC (Ontario Motor Vehicle Industry Council) Practice Test
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OMVIC Trade-Ins, Liens and Vehicle Registration Flashcards

7 cards from real OMVIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 OMVIC Trade-Ins, Liens and Vehicle Registration flashcards as text

  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?

    Answer: Only the final allowance offered for the trade-in

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

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

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

    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.

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

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

    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.

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

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

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

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

    Answer: In all private sales of used motor vehicles between individuals

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

  6. Which organization in Ontario maintains the lien registration system for motor vehicles?

    Answer: The Personal Property Security Act (PPSA) registry administered by the Ontario government

    Vehicle liens in Ontario are registered under the Personal Property Security Act (PPSA) through the Ontario government's PPR (Personal Property Registry).

  7. A customer trades in a vehicle with a $6,000 outstanding lien and is offered $10,000 as the trade-in allowance. What amount should the customer expect to receive as a net credit toward their new purchase?

    Answer: $4,000 — the lien is deducted from the trade-in allowance leaving the net equity

    The lien payout ($6,000) is subtracted from the trade-in allowance ($10,000), leaving $4,000 net equity applied to the customer's new purchase.