Any person who wishes to engage in the trade of motor vehicles in Canada is required to register under the Motor Vehicle Dealers Act (MVDA) and obtain OMVIC registration by adhering to the mandatory rules and regulations. During the process, it is natural to have some questions. Here are a few of the common questions an individual may have when applying for their OMVIC license.
- Can I Operate A Dealership from My Home in Ontario?
No. The MVDA does not allow a trader to operate from their house. OMVIC might, however, consider such an application if there is a separate business area in the residence with an entrance of its own. If the local municipality regards that specific area fit for commercial activities, OMVIC may issue a wholesale-restricted registration to the applicant.
- How Many Vehicles Can I Sell Before Registering Under The MVDA?
The MVDA requires all persons to be registered with OMVIC and legally obtain the license in order to sell motor vehicles. Besides the exceptions mentioned in the Act, you cannot trade any vehicle without duly obtaining your license. The exemptions to this rule are listed below:
- A person conducting an auction or acting as an agent for the auction of motor vehicles.
- A person who buys motor vehicles not for trade purpose but for dismantling or wrecking.
- A liquidator, assignee, receiver, custodian, or a trustee who trades in motor vehicles while executing their duties.
- A person, who under the order of a court, trades in motor vehicles.
- An estate trustee or executor who deals in motor vehicles in the course of fulfilling their duties.
- A solicitor and barrister, who while acting in the professional capacity, trades in motor vehicles.
- A sole proprietor or any other person dealing in motor vehicles for their business.
- A person who deals in power-assisted bicycles having an auxiliary motor and a pedalling device.
- A person who is into leasing vehicles, provided they meet the specific requirements mentioned in the Act.
- A person who trades in motor vehicles that has a gross weight of more than twenty-one tonnes.
- A manager and a receiver appointed under the provisions of the MVDA.
- A person who deals in a stock of vehicles by means of an auction on their owner’s behalf.
- A registered charity, a not-for-profit organization, creditor, or an insurer.
- The Fund’s board of trustees under the MVDA.
- A person who deals in a commercial motor vehicle or a bus.
- A person who, as part of the consideration for supplying a motor vehicle under a trade, receives a motor vehicle from a lessee or purchaser.
- What Type of Registration Do I Need to Obtain to Sell Used Vehicles and Motorcycles?
A person trading in vehicles that are intended for use on the road must be registered under the MVDA. However, this does not include vehicles that are used for construction, farming, and mining, or recreational vehicles such as snowmobiles. Overall, there are no distinctions between OMVIC registration for new and used motor vehicles.
- As A Salesperson, Can I Work for Multiple Dealerships at Once?
Yes. A person can work for more than one dealership at a time after obtaining written consent from all the dealers and paying an additional charge of $75 for a new sponsorship from each dealership.
Hire a Qualified Lawyer to Guide You Through the OMVIC Registration Process
At Dewshi Law, we render reliable legal services in Markham, Ontario for those looking to obtain their OMVIC salesperson or dealer license. We are also available to assist with your OMVIC license renewal. If you have any questions regarding the rules and provisions of the MVDA or about the application and registration process, feel free to get in touch with us by calling 905-482-2832.