When selling extended warranty, dealers are required to ensure they comply with all requirements under the MVDA. Dealers can only sell extended warranty products that are secured or insured.
It is the dealers responsibility, to provide accurate information to their consumers. To achieve this, dealers have the option to clearly distinguish between secured warranties and underwritten warranties when communicating product and service details to consumers. This practice not only ensures transparency but provides consumers with truthful and accurate descriptions of the products to make fully informed decisions.
Extended warranties must be insured by a company licensed under the Insurance Act. Alternatively, dealers opting to sell uninsured warranties can mitigate risks by providing a letter of credit to OMVIC. In the event that a warranty company goes out of business and the sold warranty does not meet specified requirements, the dealer assumes responsibility for all claims under the warranty.
Contracts for extended warranties and service plans must include specific information and be signed by both parties. Purchasers must receive a copy of the contract immediately after signing.
Within seven days of selling a warranty or service plan, dealers must furnish the warranty or service plan provider with all relevant documents, including contract details and received payments. For extended warranties, a statement describing the condition and mileage of the motor vehicle must be provided if available.
Dealers must ensure compliance with all MVDA requirements when selling extended warranties. They are permitted to sell only those products that are insured or for which a letter of credit has been provided to OMVIC. Clearly communicating the nature of secured warranties versus underwritten warranties can further enhance transparency and align with the legal obligations imposed on dealers.
Dealers must ensure compliance with all MVDA requirements when selling extended warranties. They are permitted to sell only those products that are insured or for which a letter of credit has been provided to OMVIC.
Registrants can verify whether a warranty company is secured by an LOC by contacting the Industry Standards & Conduct Department at 1-800-943-6002. Selling warranties from unapproved providers will result in compliance action.
Clearly communicating the nature of secured warranties versus underwritten warranties can further enhance transparency and align with the legal obligations imposed on dealers.
LOC Type | Company |
Letter of Credit – Warranty | Pinewood Park Motors Inc |
Letter of Credit – Warranty | Peterborough Volkswagen Ltd |
Letter of Credit – Warranty | Lions Auto Protection |
Letter of Credit – Warranty | Caledon Chrysler Dodge Jeep Ram Inc. O/A Carhub Caledon Chrysler/National Auto Sheild Warranty |
Letter of Credit – Warranty | 401 Auto Rv Canada Inc. |
Letter of Credit – Warranty | Track Warranty Inc. |
Letter of Credit – Warranty | 2567383 Ontario Inc. O/A Kia Yorkdale |
Letter of Credit – Warranty | 1301152 Ontario Inc. O/A Toronto Hyundai/Genesis Yorkdale |
Letter of Credit – Warranty | Scarborough Auto Group Inc. O/A Octane Used Cars / Creditland / Motorspot |
Letter of Credit – Warranty | Lamco Inc. |
Letter of Credit – Warranty | Car Central Inc. |
Letter of Credit – Warranty | Les Produits Avantage Plus O/A Les Produits Avantage Plus |
Letter of Credit – Warranty | Chris Taylor Auto Sales Ltd O/A Automaxx Pre-Owned Car Center |
Letter of Credit – Warranty | Bayview Auto Sales Inc. O/A Aap Warranty / Bayview Auto Sales |
Letter of Credit – Warranty | Davey Auto Sales Ltd. |
Letter of Credit – Warranty | A-Protect Warranty Corp |
Letter of Credit – Warranty | Naawa Corporation O/A Autogard Advantage |
Letter of Credit – Warranty | Sal Marketing Inc |
Letter of Credit – Warranty | Auto-Motion Used Vehicles Inc. O/A Auto-Motion Used Vehicles |
Letter of Credit – Warranty | Wright Auto Sales Inc. |
Letter of Credit – Warranty | 1716858 Ontario Inc. O/A Car Match Canada/Canadawide Auto Warranty |
Letter of Credit – Warranty | Rideau Valley Motors Inc. O/A My Car / Rvm Simply The Best Warranty |
Letter of Credit – Warranty | 1757259 Ontario Inc O/A Canadian Auto Warranty |
Letter of Credit – Warranty | Bayview Auto Sales Inc. O/A Bayview Auto Barrie |
Letter of Credit – Warranty | Thunder Bay Used Car Superstore Limited O/A Used Car Superstore |
Letter of Credit – Warranty | Toronto Smart Cars Ltd. O/A Carhub North York Chrysler/National Auto Shield Warranty |
Letter of Credit – Warranty | Fusion Auto Sales Inc. O/A Qb 1967 |
Letter of Credit – Warranty | Ideal Quality Automobiles Inc. |
Letter of Credit – Warranty | Garantie Kilometrage Plus Inc |
Letter of Credit – Warranty | Automotive Wholesale Inc. O/A Toronto Auto Group/2Nd Chance Automotive/Need A Car Used Car Superstores |
Letter of Credit – Warranty | 6929290 Canada Corporation O/A Mega Motors@Approval Genie |
Letter of Credit – Warranty | The Car Lot Etc. Incorporated O/A The Car Lot Etc. |
Letter of Credit – Warranty | Autoloan Solutions Ltd. O/A Autoloan Solutions |
Letter of Credit – Warranty | Progressive Auto Sales (Sarnia) Inc. |
Letter of Credit – Warranty | Peel Car Sales Inc. O/A Peel Cars Gta |
Letter of Credit – Warranty | Kanata Ford Sales Ulc |
Letter of Credit – Warranty | Priority Car Financing Corp. |
Letter of Credit – Warranty | 1513600 Ontario Ltd. O/A Tabangi Motors |
Letter of Credit – Warranty | Sun Auto Inc. |
Letter of Credit – Warranty | Toronto Autohaus Ltd. |
Letter of Credit – Warranty | Cardealsdirect Inc. O/A Cardealsdirect |