Dealer-to-dealer trades: Know your disclosure requirements

Disclosure requirements apply when vehicles are traded between registered dealers, including through auctions. Under section 5 of the Code of Ethics, dealers must ensure required information is disclosed in dealer-to-dealer contracts. Knowing what must be disclosed and when can help dealers and salespeople meet their responsibilities when buying and selling vehicles. 

Understanding dealer-to-dealer disclosures

It is important to understand your responsibilities in dealer-to-dealer transactions. When selling to another dealer, dealers and salespeople must disclose any fact that affects the structural or mechanical quality, condition, or performance of a vehicle. 

Going through an auction? Your responsibilities still apply

When putting a vehicle through an auction, the selling dealer or salesperson remains responsible for providing the required disclosures. The auction may also have separate obligations to support transparency and compliance. Buying dealers are entitled to receive the required disclosures whether they purchase a vehicle directly from another dealer or through an auction.  

OMVIC may take action when requirements aren’t met

OMVIC reviews concerns involving dealer-to-dealer trades and auction activity. When non-compliance is identified, action may involve the selling dealer, the auction or both. 

For example, OMVIC recently issued an education order involving certain staff of ADESA Remarketing Services Inc. (OPENLANE Canada) related to disclosure requirements. Education orders are a key compliance tool used by OMVIC to reinforce corrective action. Read the education order here. 

If you have questions about disclosures, contact OMVIC’s Industry Standards & Conduct team at [email protected] or 1-800-943-6002 ext. 4.