What every Ontarian needs to know about All-In Pricing
According to Terry O’Keefe, Director of Communications & Education at the Ontario Motor Vehicle Industry Council (OMVIC), only 29% of Ontarians are familiar with what "all-in pricing" means, let alone the fact that it's been the law in the province for the past five years.
If you're part of the 71% of uninformed Ontarians and either work at an auto dealership or are interested in purchasing a new or used vehicle, it's in your best interest to know about All-In Pricing and what it means to you, so read on!
What is "All-In Pricing"?
Back in 2010, OMVIC launched a mandatory requirement for all registered auto dealerships in Ontario to advertise the all inclusive price of a vehicle aka the "all-in price," which includes all fees & charges the dealer intends to collect after the sale of a vehicle.
As a registered auto dealership in Ontario (both new and used car dealers), this means it is illegal to disclose additional charges in advertised prices and quotes, and that all quantifiable charges need to be included in the price that's being advertised to the consumer.
As an auto consumer in Ontario, this means that when you buy or lease a new or used vehicle from a registered dealer, you have rights under the Motor Vehicles Dealers Act to know the true total price of a vehicle. There are essentially no hidden fees allowed with OMVIC's All-In Pricing; any ad for a vehicle must represent the all-in price.
The following are a few examples of costs that a registered dealer would need to include:
- Freight
The shipping cost of the vehicle. - PDI – PDE
Pre-delivery inspection and expenses - Administration fees
The cost of processing vehicle orders and preparing new and used vehicles for delivery, purchased or leased. - Government levies
Air, tax, etc. - OMVIC fee
As of 2015, the transaction fee has increased from $5 to $10. - Pre-installed products or services
Tire warranty, nitrogen, security products, fuel, etc.
Note that by law in Ontario, the only additional fees a dealer can charge to the consumer are the cost of vehicle registration & plates (licensing) and the Harmonized Sales Tax (HST) ... unless the additional fees are for optional products or services that the auto consumer has requested or agreed to purchase.
Want to learn more about All-In Pricing? Check out OMVIC's UNDERSTANDING ALL-IN PRICING pdf.
What should I do if a dealer fails to advertise the All-In Price?
If a dealer tries to rip you off by charging in excess of the advertised price, simply walk away -- they don't deserve your business! You can also report the registered dealer to OMVIC by contacting their Complaints & Inquiries Team at 1-800-943-6002 x5105 and filing a complaint.
OMVIC takes its job seriously when it comes to enforcing the MVDA, as is evidenced by a recent legal matter in 2014 involving a Toronto area dealer who was fined for breaching the All-In Price law.
Important note: OMVIC does not regulate vehicle manufacturers, therefore advertisements placed by manufacturers do not have to comply with the MVDA and all-in pricing is not required for their ads. That said, some manufacturers voluntarily comply with the all-in pricing provision and commendably provide transparency to consumers.
OMVIC Launches an Awareness Campaign in 2015
In an effort to educate consumers about their rights when it comes to buying a car in Ontario, OMVIC has launched a six-week consumer awareness campaign. Check out their YouTube video below:
OMVIC’s campaign message is “all-in pricing – it’s putting the fun and excitement back into buying a car … and, it’s the law!” which is now being syndicated on major TV networks such as CBC, CTV and City TV.
