Back

“Don’t worry, we’ll figure out the financing later.” – an emerging trend of non-compliance

February 13, 2026
Selling

It’s 6:45 p.m. on a Wednesday at a used car dealership in Ontario.

The showroom is quiet. One sales desk light is still on.

Mark has been there for over an hour. He came prepared. He knows his budget and his credit is decent. Eight percent is his ceiling. Anything higher and the deal does not work.

The salesperson smiles and slides a bill of sale across the desk.
“Just sign this to secure the vehicle. We will finalize the financing after.”

Mark looks it over.
Vehicle details, price and taxes are listed.
But no monthly payment.
No interest rate.
No term.
No APR.
No cost of borrowing.

He hesitates.

“So the financing will be around eight percent, right?”

The reply comes quickly.
“Yes, we work with a bunch of lenders. That will not be a problem.”

Then comes the pressure:
“If you do not sign tonight, I cannot hold the car.”

Mark signs.

The next day, his phone rings with “good news.”
Financing has been approved at 18 percent.
The term is longer than expected.
The total cost is thousands more than he planned.

When Mark pushes back, the salesperson says:
“You signed the bill of sale. This is the financing that was approved.”

Why this deal is a problem in Ontario

In Ontario, a bill of sale is not a placeholder. It is a contract. When financing is part of the deal, key financing details must be provided clearly and in writing before the consumer signs. Verbal assurances do not replace written disclosure.

Under the Consumer Protection Act, when a dealer arranges financing, the consumer must be given enough information to understand the full cost of the deal. This includes:

  • The annual percentage rate (APR)
  • Monthly payments
  • The term
  • The cost of borrowing or implicit finance charges
  • The total amount of all required payments and the timing of each
  • Down payments, deposits, balloon payments or final payments
  • Guaranteed residual values for open ended leases
  • The cash price of the vehicle

A rising trend in Ontario

Tim Hines, Director of Complaints & Inquiries at OMVIC comes across situations like this with increasing frequency in consumer complaints.
 

“We are seeing more complaints where consumers say they were pressured to sign a bill of sale without financing details, only to later discover rates of terms that were never disclosed upfront,” says Hines. “In some cases, those complaints can lead to enforcement action.”

How to remain compliant

If financing is part of the transaction, the deal is not ready to sign until all financing details are included in the bill of sale and clearly explained to the customer.

Key takeaway

Beyond regulatory risk, these situations quickly damage trust. When consumers describe experiences like this to our complaints staff, they rarely start by mentioning the interest rate. They start by explaining how they felt misled.

Contact OMVIC if you have questions

For further questions, contact OMVIC’s Industry Standards and Conduct team at [email protected].