OMVIC Licensing Requirements 5 — Questions and Answers
Question 1: A registered dealer wishes to open a second sales location in Ontario. What must they do regarding OMVIC registration?
- No additional registration is needed as the original covers all locations
- Register the additional location as a branch under their existing dealer registration (Correct answer)
- Apply for an entirely separate dealer registration for the new location
- Notify OMVIC informally by email within 90 days of opening
Correct answer: Register the additional location as a branch under their existing dealer registration
Each additional sales location must be registered as a branch premise with OMVIC, as registrations are location-specific under the MVDA.
Question 2: Which of the following is a mandatory condition that ALL registered motor vehicle dealers in Ontario must maintain throughout the period of their registration?
- A minimum inventory of 10 vehicles at all times
- Adequate premises appropriate for the class of registration (Correct answer)
- A minimum of three licensed salespersons on staff
- A dedicated service bay for vehicle repairs
Correct answer: Adequate premises appropriate for the class of registration
Registered dealers must continuously maintain premises that meet OMVIC's standards appropriate for their registration class as a condition of ongoing registration.
Question 3: What action must an OMVIC-registered dealer take if they decide to permanently close their business?
- Simply stop operating and let the registration expire naturally
- Return their registration certificate and notify OMVIC of the closure (Correct answer)
- Transfer their registration to another dealer within 60 days
- Continue paying registration fees for one additional year
Correct answer: Return their registration certificate and notify OMVIC of the closure
Dealers who permanently cease operations must surrender their registration certificate and formally notify OMVIC to avoid ongoing obligations and regulatory issues.
Question 4: An OMVIC-registered salesperson wants to operate as an independent contractor rather than an employee of a dealership. How does OMVIC treat this arrangement?
- Permitted, as long as the salesperson pays their own registration fees
- Not permitted — salespersons must be registered under a specific licensed dealer (Correct answer)
- Allowed only if the salesperson has 5+ years of industry experience
- Permitted with written approval from OMVIC's registrar
Correct answer: Not permitted — salespersons must be registered under a specific licensed dealer
Under the MVDA, salespersons cannot operate independently and must be registered under a specific licensed dealer who acts as their sponsor.
Question 5: Which of the following scenarios would trigger OMVIC to investigate whether an unregistered person is illegally trading in motor vehicles?
- A person who sold one vehicle to a family member
- Someone consistently advertising and selling multiple vehicles for profit (Correct answer)
- A charity holding a one-time vehicle raffle
- An estate executor selling a deceased person's car
Correct answer: Someone consistently advertising and selling multiple vehicles for profit
Consistent, repeated vehicle sales conducted for profit are the hallmark of trading in vehicles and trigger OMVIC investigation for unregistered dealer activity.
Question 6: Under OMVIC rules, what is a 'curbsider' and why are they a concern?
- A licensed dealer who sells vehicles at outdoor markets with OMVIC approval
- An unregistered person who sells vehicles privately while disguising themselves as a private seller (Correct answer)
- A wholesale dealer who only sells to other dealers, not the public
- A registered broker who facilitates sales without maintaining inventory
Correct answer: An unregistered person who sells vehicles privately while disguising themselves as a private seller
Curbsiders are unregistered dealers who fraudulently pose as private sellers to avoid consumer protection obligations and OMVIC oversight.
Question 7: What document must a registered OMVIC dealer display prominently in their place of business?
- Their personal financial statements
- Their OMVIC registration certificate (Correct answer)
- Proof of vehicle insurance for all inventory
- A list of all registered salespersons' criminal record checks
Correct answer: Their OMVIC registration certificate
OMVIC requires all registered dealers to display their current registration certificate at their premises so consumers can verify the dealer's legitimacy.
OMVIC Licensing Requirements 5
A registered dealer wishes to open a second sales location in Ontario.
What must they do regarding OMVIC registration?