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Car Shopping? Don’t Get Fooled by Illegal Ads

May 7, 2025
Blogs

If you’re shopping for a car in Ontario, you might see ads that seem too good to be true. When you arrive at the dealer you notice the price on the bill of sale is much higher than advertised. This is a violation of all-in price advertising legislation under the Motor Vehicle Dealers Act (MVDA). Learning how to spot misleading ads can help you avoid surprises and make sure you don’t pay more than you should. 

What Is All-In Price Advertising?

In Ontario, the MVDA requires dealers and salespersons to follow all-in price advertising rules. This means any advertised price must include the full cost of the vehicle, except for HST and licensing fees. Under the legislation, all motor vehicle ads must show the total price upfront. Items that must be included in the all-in price advertising include: 

  • Freight and PDI (pre-delivery inspection). 
  • Administration fees. 
  • Government levies (such as air tax). 
  • Pre-installed products or services (such as tire protection or warranties). 

Red Flags in Vehicle Ads

All-in price advertising can be challenging to identify as a car buyer. To help you make sense non-compliant and compliant ads, OMVIC has a few tips to keep in mind when shopping for a vehicle. Here’s what to watch for: 

  1.  The “Too-Good-to-Be-True” Price
    🚩 Example: A vehicle is advertised for $25,000, but when you arrive, you’re told that price doesn’t include a $1,500 administration fee or freight charges.
    ✅A compliant ad would include all mandatory fees upfront, so you’re not surprised by extra costs later. 
  2. Small Print or Hidden Fees
    🚩Example: The ad says, “Price: $22,999*” with a tiny asterisk leading to fine print that lists additional fees.
    ✅A compliant ad clearly states the total cost, without hidden disclaimers or fine print that increase the price. 
  3. Unfit Vehicles (vehicles that are not certified)
    🚩Example: The dealer advertises an unfit vehicle for a certain amount, but when you visit, they inform you there is an additional cost for certification.
    ✅A compliant ad for vehicles sold as unfit must clearly state that the vehicle is not driveable and not certified. A dealer that intends to offer safety certification must also include that cost in the advertisement. 
  4. Extra Fees for Cash Buyers
    🚩Example: A vehicle is advertised for $50,000 and you plan to pay cash. Upon purchase, you inform the dealer of your intention to pay with cash, and now the dealer wants to increase the price, saying the advertised price is only available with dealer financing. Alternatively, an ad that lists the cash price in the fine print or on another page of the ad is in violation of all-in price advertising legislation.
    ✅A compliant ad cannot charge more than what is stated in the ad. A dealer can legally charge a higher price for a cash purchase, but only if the advertisement clearly states this in a clear and prominent matter beside the finance price. The ad must show both the financing price and the cash price clearly.  

What to Do If You Spot a Non-Compliant Ad

Ask questions. If an ad seems unclear, call the dealer and confirm the full price before visiting. OMVIC also recommends bringing the ad with the price when visiting the dealer to avoid any confusion.  

Report misleading ads. If a dealer isn’t following all-in pricing rules, you can report them to OMVIC.  

Know your rights. Dealers must follow the MVDA. If they try to add extra fees, walk away and shop elsewhere. 

By staying informed, you can shop with confidence.