Canadian Auto Dealer News, Links & More
In Ontario’s automotive sector, the Ontario Motor Vehicle Industry Council (OMVIC) plays a critical regulatory role. Its mission? To protect consumers and uphold fair practices across the province’s auto industry. For used car dealerships, auto dealers, and car sales professionals, OMVIC is both a familiar name — and increasingly, a controversial one.
While many recognize the organization’s value in keeping the market fair and transparent, a growing number of Ontario car dealers are sounding the alarm over recent fee increases, rising administrative demands, and a perceived lack of accountability.
Let’s explore both sides of this conversation — what OMVIC gets right, and where Canadian auto dealers are asking for reform.
1. Protecting Dealers from Curbsiders
OMVIC is one of the only lines of defense licensed used car dealers have against “curbsiders” — unregistered individuals selling vehicles without meeting regulatory requirements. These sellers often operate in the shadows, skipping safety checks, disclosure requirements, and tax obligations. OMVIC’s enforcement efforts help keep the playing field level for legitimate auto dealerships that do follow the rules.
2. Enhancing Consumer Confidence
By mandating dealer education, advertising standards, and disclosure practices, OMVIC helps boost trust in the formal marketplace. For registered car dealers, this can translate to more qualified buyers and smoother transactions. Their existence assures customers that buying from a licensed dealership is safer than a back-lot transaction.
3. A Compensation Fund for Buyers
OMVIC administers the Motor Vehicle Dealers Compensation Fund, which offers restitution to consumers who suffer financial losses due to a dealer’s misconduct. While this protects consumers, it also indirectly benefits reputable car dealerships, reinforcing public trust in the dealer network as a whole.
4. Public Awareness Campaigns
Campaigns that promote the difference between curbsiders and registered dealers support the industry’s long-term credibility. These initiatives help Canadian car dealerships by guiding more buyers into the hands of licensed operators.
Despite OMVIC’s intended value to the automotive ecosystem, a growing number of Ontario used car dealers are raising serious concerns — not just about recent changes, but about a pattern of compounding financial pressure.
1. Significant Fee Increases
According to the Used Car Dealers Association of Ontario (UCDA), OMVIC has recently enacted or proposed:
For small or independent auto dealerships, these sudden penalties can feel both punitive and disconnected from the reality of running a lean, margin-sensitive business. The lack of advance industry consultation on these fees has further fueled frustration within the dealer community.
You can read the UCDA’s full response and dealer-facing breakdown of OMVIC’s planned increases below:
https://www.ucda.org/can-dealers-afford-omvic/
2. Uncertainty Around Mandatory Education
In 2026, new mandatory education requirements will be introduced, but details around the curriculum, cost, and implementation remain unclear. Many car dealers fear this could become yet another financial or administrative burden layered on top of already rising fees.
3. Concerns About OMVIC’s Operational Efficiency
The UCDA reports that nearly 90% of OMVIC’s revenue goes toward salaries and board-related expenses. With plans to expand staff from 140 in 2022 to 180 by 2026, dealers are asking: is this growth necessary? And more importantly — are the costs justified by the value being returned to the industry?
4. Dealer Sentiment is Sliding
OMVIC currently holds a Google rating of less than 2 stars — a concerning indicator when both the public and dealer registrants seem dissatisfied. There are also growing calls for third-party audits to review OMVIC’s spending and operational decisions, which OMVIC has so far declined.
The question isn’t whether OMVIC should exist — most Canadian auto dealers agree that a regulator is necessary to ensure transparency and protect the integrity of the market. The real question is: how should OMVIC evolve to remain effective, accountable, and fair to the industry it oversees?
A few potential paths forward:
The relationship between OMVIC and Ontario’s auto dealership community is at a crossroads. On one hand, OMVIC plays an important role in consumer protection and industry credibility. On the other, escalating costs and limited dialogue are creating strain — especially for independent used car dealers.
Striking a better balance isn’t just beneficial for dealers — it’s essential for Ontario’s entire automotive marketplace. Let’s hope both sides can come to the table with a shared goal: a fair, trusted, and thriving car dealership industry in Ontario.
Want to hear what other dealers are saying?
Check out this Reddit discussion where real Ontario car dealers are sharing their thoughts and frustrations about OMVIC, its enforcement practices, and the recent fee hikes.
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The information on fee increases reflects public communications from the UCDA, summarized here in our own words to help Ontario dealers understand the implications. You can access their full bulletin at:
"Can Dealers Afford OMVIC?" https://www.ucda.org/can-dealers-afford-omvic/
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