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.
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|421342 Ontario Limited o/a Kingston Nissan, Car Credit Kingston and Caroone/Car Care Warranty Coverage|
|603418 Ontario Inc. o/a J.P. Motor Sales/Elite Automotive Protection Plan|
|6929290 Canada Corporation o/a Mega Motors@Aproval Genie|
|A-Protect Warranty CORP|
|Auto Motion Used Vehicles Inc.|
|Autoloan Solutions Ltd.|
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|Chris Taylor Auto Sales Ltd. o/a Automaxx Pre-Owned Car Centre|
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|Fusion Auto Sales Inc. o/a QB 1967|
|Garantie Kilometrage Plus Inc|
|Haishang Investments Ltd. o/a Haishang Auto Sales|
|Ideal Quality Automobiles Inc.|
|Kanata Ford Sales Ltd.|
|Lions Auto Protection|
|NAAWA Corp o/a Autogard Advantage|
|Peel Car Sales Inc. o/a Peel Financial Lending|
|Peterborough Volkswagen Ltd|
|Priority Car Financing Corp.|
|Progressive Auto Sales (Sarnia) Inc.|
|Rideau Valley Motors Inc. o/a My Car/RVM Simply The Best Warranty|
|SAL Marketing Inc.|
|1513600 Ontario LTD. o/a Tabangi Motors o/a Tabangi Warranty|
|Toronto Autohaus LTD|
|Toronto Smart Cars Ltd. o/a Carhub North York Chrysler /National Auto Shield Warranty|
|Thunder Bay Used Car Superstore Limited o/a Used Car Superstore|
|Trend Financial Corp. o/a Trend Financial|
|4963229 V.I.N Trading INC. o/a Cardealsdirect|