YOUR CONNECTION TO ONTARIO’S USED CAR INDUSTRY
THE ONTARIO UCDA
VOLUME 10, ISSUE 1
THE OFFICIAL MAGAZINE OF THE USED CAR DEALERS ASSOCIATION OF ONTARIO
> INSIDE: PLUS DEALER PROFILE: Thorold Automotive Solutions /18
YOUR DEALERSHIP NEEDS A COMMS PLAN /9 HOW USED CAR WARRANTIES ENHANCE EVERYONE’S EXPERIENCE /12 WINTER 2022
THEONTARIODEALER.COM
Keep customers for a lifetime Leverage CARFAX Canada’s trusted brand to drive customers back to your dealership throughout their lifetime of vehicle ownership. With CARFAX for Life, service reminders and exclusive email offers bring customers back to YOU, helping to increase service revenue and build customer loyalty.
To learn more, visit go.carfax.ca/service. 2 | THE ONTARIO DEALER
THE ONTARIO UCDA
IN THIS ISSUE
VOLUME 10, ISSUE 1
Winter 2022 USED CAR DEALERS ASSOCIATION OF ONTARIO 230 Norseman Street, Toronto, ON M8Z 2R4 Tel: 416.231.2600 Toll Free: 1.800.268.2598 web@ucda.org
FEATURED STORIES Your Dealership Needs a Communications Plan By Angela West
09
ucda.org Publication Mail Agreement #41890516
ONTARIO DEALER
How Used Car Warranties Enhance Everyone’s Experience
is published by Laservision Graphics Ltd. four times a year.
12
130 Industry Street, Unit 36, North York, ON M6M 5G3
Dealer Profile: Thorold Automotive Solutions
EDITOR Gina Monaco Tel: 1.647.344.9300 or 1.289.456.4617 gina@ontariodealer.com
ADVERTISING SALES Direct: 416.360.0797 Office: 647.344.9300
PHOTOGRAPHY photosbypierce.com
By Ronda Payne
18 Old Car Detective Ron Pickford’s 1957 Meteor
05 07 08 15 18 22 24 26 29
The Driver’s Seat Warren Barnard
Editor’s Note Gina Monaco
The Law Matters Jim Hamilton
Tech Talk Angela West
Dealer Profile Ronda Payne
Trends Chris Chase
Old Car Detective Bill Sherk
The Common Lawyer Justin M. Jakublak
About Jack Notman: 69 Chevelle
By Bill Sherk
24
DESIGN thrillhousestudios.com
CONTRIBUTORS Chris Chase, Ronda Payne, Bill Sherk, Angela West, Joanne Walmsley If you are interested in having your personal opinion heard, contact the editor at gina@ontariodealer.com
The publisher of The Ontario Dealer reserves the right to turn down any advertising or content submitted to it. The Used Car Dealers Association of Ontario and the publisher accept no responsibility for claims or statements made by advertisers in this publication or by the independent authors of articles appearing in this publication. All statements and opinions appearing in this publication are those of the writers themselves and are not to be construed as reflecting the position or endorsement of the Used Car Dealers Association of Ontario or the publisher.
VOLUME 10, ISSUE 1 | 3
Information on all-in price advertising avaliable at your fingertips OMVIC’s resources can support your business. All-in pricing means that the advertised cost of any new or used vehicle must include all fees and charges, with the exception of HST and licensing. To comply with the Motor Vehicle Dealers Act, make sure your ads show the right price. To learn more about all-in price advertising, visit omvic.ca and click on the dealers tab to access free resources and tools on how to stay compliant with the law including: • Advertising templates • Fact sheets • Educational posters • All-in price calculators for both new and used vehicles OMVIC also offers educational webinars about advertising. For more information, contact education@omvic.on.ca or call 1-800-943-6002 ext.3180. To access OMVIC’s advertising review services, contact dealers@omvic.on.ca or call 1-800-943-6002 ext.3180.
4 | THE ONTARIO DEALER
THE DRIVER’S SEAT Life on the COVID treadmill continues As we enter a third year of COVID, the used vehicle industry can look at itself and be proud of how much resiliency it has shown throughout the pandemic. Of course, individual stories vary, but overall the industry is still thriving, despite desperate inventory shortages that forced dealers to be creative in how they source vehicles.
By Warren Barnard, Executive Director, UCDA
ONE YEAR AGO, FOR MY FIRST DRIVER’S SEAT COLUMN OF 2021, I WROTE: As I write this column in January, Ontario has just been put into a State of Emergency by the Provincial government. Everyone is subject to a Stay at Home order, though unlike the first lockdown in April, dealers are still able to operate by appointment only. We have begun the year in the second lockdown the industry has seen since the COVID-19 pandemic started, with the first coming in April. Unlike the first time, dealers have been deemed essential to Ontario’s economy and have been permitted to stay open by appointment only. Change the year, and you might have thought that I was talking about the start of 2022! Throw in “Freedom Convoy”, the “Occupation of Ottawa”, bridge blockades, microchip shortages and record cold temperatures and you'll know it's 2022.
Many members that I have spoken with have seen steady sales throughout COVID, fueled by high demand that has created a market with record high margins on used vehicles. Retail demand has only increased so far in 2022. New car customers, frustrated by the lack of supply, high prices and long waiting periods to take delivery of a new vehicle, have turned instead to the used market. Many will not go back. Still, a recent survey of UCDA members, carried out by Desjardins Automotive Consultants, showed that franchised new car dealers and independent used vehicle dealers have been impacted in quite different ways by the pandemic. With less access to trade-ins and off-lease vehicles, many independent dealers struggled to find inventory and had to look beyond Ontario, at out-of-province auctions, to help make up the difference between the supply shortfall and the continuing strong demand. Many dealers also looked to the public to purchase inventory, but these sources only partially filled the gap. Based on the survey results, this lack of inventory seems to have hurt independent dealer sales more than it did used sales at new car dealers. Retail prices went through the roof in
2021 compared to 2020 (which also had seen price hikes over 2019). Interestingly, independent dealers reported higher price increases than new dealers did, especially for SUVs and light trucks. But if COVID seems to have hit independent dealers harder than new car dealers in 2020 and 2021, the inherent optimism of the industry is apparent in the expectations for the coming year. Independents expect a better sales year this year than they had in 2021. The survey suggests that many new car dealers expect used sales to drop, as new vehicle sales increase. COVID could throw us a curve ball again at any time, of course. But I know our members and this industry will make the adjustments they need to, in order to succeed. Here are a few of the articles I think you’ll enjoy in this issue. On Page 9, Angela West writes about how important it is for dealers to have a communications plan. On Page 12, read about the growing popularity of extended warranties and how they can enhance your relationship with your customers. On Page 18, this issue’s Dealer Profile is on Thorold Automotive Solutions. The Old Car Detective is back on Page 24, with another entertaining tale about a classic car. This time it’s a 1957 Meteor! As always you can reach me at w.barnard@ucda.org.
VOLUME 10, ISSUE 1 | 5
If you’re not signed up with National Bank as your financing partner and are thinking about it, NOW is the time! Reach out to Roberto Nardi at Roberto.Nardi@bnc.ca and he’ll put you in touch with your local representative, or contact us through DealerTrack. You’ll receive: › Exceptional support and strong ground presence from your local National Bank Business Development Manager. › An industry-leading auto-adjudication system allowing you to get aroundthe-clock credit decisions in minutes, 7 days a week. › Additional support through the Bank’s Operations Centre, where Customer Service Agents and Credit Analysts are available to discuss your clients’ financing needs. › Easy paperwork — the simplest loan documents in the industry. › Quick & easy funding allowing you to have access to your funds within hours. If you already deal with National Bank for your financing needs, you will now gain access to exclusive promotional offers. Program Criteria: The National Bank program is available for new and used car dealerships. For new car dealerships, the dealership is subject to due diligence that includes, but is not limited to, a satisfactory review of the information provided and referenced on the accreditation application form. Any reliable published information about the dealership is also considered. For used car dealerships, in addition to the above, the dealership is subject to a satisfactory review of the UCDA Member’s financial situation and operations. This includes, but is not limited to, a review of the dealership’s most recent financial statements and a review of their client-escalation process. As a guideline, used car dealerships should be in business for a minimum of 5 years and meet a minimum threshold of $1 million in annual sales. Note: National Bank does not offer subprime financing. National Bank’s program is for retail customers and does not provide loans to businesses.
EDITOR’S NOTE The Better Than Selling Principle short-term dollars while creating customers creates long-term dollars.
By Gina Monaco, Editor
I RECENTLY ATTENDED AN ONLINE
conference focusing on how to build better relationships with customers. Although it was geared to another industry, there were some takeaways I thought could apply to the auto industry. Many of you may already know much of this, but I think it’s always good to be reminded of what we really do, as salespeople. There are three key points to business success that salespeople need to understand. 1. The most important goal is to create and keep customers. While our primary job is to sell, that transactional approach may be short-sighted. Making sales creates
2. There’s a big difference between selling and helping people buy. That difference is attitude. Traditional “selling” can be quite manipulative. It assumes the following, “Let’s take what we have and talk someone into buying it.” If we take the opposite approach, then the statement changes to, “Let’s find out what the customer wants or needs and see if we can match it with what we have. And, if we don’t have it, maybe we can find it.” If we can’t then – and this may be tough for some – “Let’s send him to someone who can help and ask to serve the customer in the future.” Selling creates a sale but helping people buy creates a customer. 3. People love to buy but hate to be sold. Focus on what your customers need and want, then help them buy what’s best for them, and make them feel good about it. This approach is better than selling. This is equally important for everyone who works, whether or not in sales. If you’re working in a larger dealership as a receptionist, or in the service department, for example, you may not have direct contact during the sales process but the dealership’s customers are actually paying your salary, so anything you can do to
improve your employer’s products and services helps everyone. After all, you’d like to continue to have a job and earn money, even get a raise. One way to guarantee that is to want the very best for your employer and your employer’s customers, then take action to contribute where you can. Make helping the customer the top priority in your job. There may be a tendency to look at a customer with just dollar signs in your head. This doesn’t work in the long term. While sales quotas are important, they are a means to an end. And that end is to create and keep customers. So, try starting your day off by asking yourself, “How can I be of greater help to my customers?” Keep a notebook handy and when you have a new idea, write it down. Get others at work to do the same thing. You could even make a contest out of it, with prizes for those who come up with the best new ideas for helping customers. There’s a saying that business is a lot like tennis – those who don’t serve well, end up losing. ■
VOLUME 10, ISSUE 1 | 7
THE LAW MATTERS Gone … But Not Forgotten that would have entitled the employee to even more money. This is what happened in the case of David Matthews, an ex-executive with Ocean Nutrition Canada Ltd.
By Jim Hamilton Legal Services Director
A RULING FROM THE HIGHEST COURT
in the land is usually of interest, but this one is particularly of interest to dealers. That’s because this decision, described as a “landmark” in the area of Employment Law and notice periods, impacts the unique way that many salespeople in our industry are paid – by way of bonuses and commission.
Suppose you fire someone, and don’t give them the correct notice period or pay them the severance required. That’s bad enough because the court could order you to pay them more money to reflect the extended notice period and salary they were entitled to. It gets even worse when, during the notice period you should have given them, and failed to, an event occurs
8 | THE ONTARIO DEALER
Mr. Matthews was able, at trial, to successfully establish that he was “constructively dismissed”. Conditions at work had deteriorated to the point that he was able to argue that he was for all intents and purposes “fired” wrongfully. The judge ruled that the proper notice period, had he been fired “correctly”, was 15 months. That is interesting of course, but the real sticky part is what happened during that 15 month period. Ocean Nutrition was sold to a new owner. This triggered a clause in Mr. Matthew’s employment contract that would have entitled him to a bonus of over one million dollars! As you might expect, Ocean Nutrition argued vigorously (vigorously enough to take the case all the way to the Supreme Court of Canada) that an ex-employee should not be able to take advantage of a bonus triggered long after he was let go. Obviously, the Supreme Court disagreed with the employer! Their ruling establishes, to the amazement
of many, that if a triggering event, such as a bonus, commission, or other entitlement arises during the period of notice that should have been given to a terminated employee, those rights can survive the termination. The court said: “The purpose of damages in lieu of reasonable notice is to put the employee in the position they would have been in had they continued to work through to the end of the notice period … [a]fter all, had Mr. Matthews been given proper notice, he would have been ‘full-time’ or ‘actively employed’ throughout the reasonable notice period.” Howard Levitt, the lawyer who represented Matthews in court, said the case applies to anybody who has ever been constructively dismissed or fired. Dealers should sit up and take notice of this case. If you terminate an employee and within the correct notice period they would otherwise have been entitled to a bonus or commission, you should consider whether or not to pay it. Of course, all of this would be done with proper legal advice from a lawyer who knows a thing or two about employment law. ■
YOUR DEALERSHIP NEEDS A COMMS PLAN - HERE’S HOW TO GET STARTED? By Angela West
WE ALL LEARN TO TALK, BUT SOME OF US NEVER MASTER the art of
communication. You’d think something so instinctive should be simple, but it can quickly get complicated in a corporate context, leading to poor productivity, loss of business and dissatisfied staff.
Ineffective communication is a drain on a dealership. If you can’t explain to your customers why they should use your services, they won’t stick around. And if you can’t tell your employees what they need to know to do their jobs
effectively, their work will suffer. That’s why communication plans are a must in any organization. These act as a working document that doesn’t just provide clarity and consistency on brand messaging, but also promotes a more open and transparent workplace. What is a communications plan or "COMMS" Plan? Communication plans are documents that cover all aspects of the way your
business talks to internal and external parties. It’s the go-to resource when drawing up your marketing budget, and strategizing for advertising campaigns, direct marketing, on-the-lot sales, sponsorships, or events. These types of plans are frequently highly detailed, including guidance on tone, style, brand colors, approved graphics, social media messaging, media relations, and more. They ask and answer questions such as - Who are our
VOLUME 10, ISSUE 1 | 9
DEALERSHIP COMMS PLAN | ANGELA WEST will help Identify what you do well, what could be done better, potentially profitable avenues to increase sales, and challenges you may encounter along the way.
target audience? How do we reach them? How do we grow our client base through better communication? What does our messaging convey? While it’s tempting to solely focus on marketing when devising a comms strategy, there’s more to communication than selling. A comprehensive plan takes all aspects of the business into account - crisis management, corporate announcements, service delivery, product launches, consumer complaints. Every time your organization talks to its staff, its clients, and its partners, it’s communicating and those busy back and forths have to be structured in a way that’s consistent and reflects the company’s brand and values. The importance of effective communication Companies don’t always understand the link between effective communication and staff productivity, but research shows that teams who are kept in the dark are less motivated and less effective. Targeted communication increases transparency, keeping your staff up to date with company changes, new products, operational shifts and anything else coming down the pipe that they need to know. This, in turn, makes them feel valued and trusted - both individually and as part of the team. When it comes to your customers, communication is probably the most important aspect of any sale. Businesses
10 | THE ONTARIO DEALER
with a clear message immediately earn brand authority that can give them the edge over competitors. People buy from people they trust. They also buy when they feel empowered to make the right decision and that’s where communication comes in. At its core, marketing is about identifying what your customers need or want, and telling them exactly how you can deliver it. That’s why a good comms strategy must be open, honest, and clear - with zero jargon or fluff. Not only does this reduce the risk of misunderstandings, it also builds authenticity. Hyperbolic sales pitches might sound good in the moment but if there’s no meat to the message, your dealership can quickly lose client goodwill and gain a reputation for being all style and no substance. Getting started A basic template for your comms plan could start with a SWOT analysis looking at your Strengths, Weaknesses, Opportunities, and Threats. SWOT
Next, is outlining your target market. Who are your clients? What motivates them? Where can you find them? Buyer personas can help you understand your customers so you know what will grab them and what they’ll ignore. Think about existing customers and potential new clients - how can you increase word of mouth with the former and quickly engage the latter?
"..research shows that teams who are kept in the dark are less motivated and less effective." This is also where you plan for upcoming campaigns, outline your approach to new product launches and other corporate initiatives, and factor in seasonal shifts in demand. Set targets, milestones, and objectives to keep your sales teams on track and map out your budget and expected expenses. Don’t be afraid to get into the weeds - this document is the foundation of all your company communication, so think of it as your business bible!
DEALERSHIP COMMS PLAN | ANGELA WEST
Implementing your plan It doesn’t matter whether you’re a largescale dealership or a small operator, the first step in implementing a new comms strategy is…communication. Get everyone onboard and involved right from the start to set yourself up for success. This would likely involve announcing the new strategy, inviting feedback, and/or hosting meetings to address any questions. This should be a company-wide initiative, not just because it covers internal communications but also because your customers will likely interact with a number of different departments across their sales journey. Of course, dealerships owned by a parent company or affiliated with a brand will have their own procedures to follow. Bear in mind that guidelines on branding materials will have to be integrated into your dealership’s strategy. Make sure you’re up to date on the latest messaging before making any changes. It can help to have a template ready to go if you’re waiting on approvals from head office. That way, you can easily slip in the correct graphics or content once you’ve got sign-off and get it out there as soon as possible. This can be a huge time-saver if you’re in the throes of rolling out an important campaign. Like any skill, good communication takes practice. Once you’ve drawn up your templates, introduced your strategy, and
made sure everyone’s on the same page, it’s now up to senior staff to maintain it. Reward the employees who demonstrate their newfound communication skills, leading by example and boosting morale. Also consider weekly or monthly meetups to track progress and invite your team to share their experiences with the new messaging or branding. Your salespeople are your best resource for seeing how your messaging is landing and whether you need to tweak or pivot your approach. And now’s the time to consider how you’ll support your strategy. Do you have the tools you need to implement it properly? We live in a hyper-connected age with a variety of tech solutions that all promise to improve communication in the workplace. Each dealership’s needs are different. Some better communication might be as simple as upgrading to a better email server or CRM platform. Others might want to take advantage of cloud-based messaging or meeting apps. Don’t forget to explore your options
and plug any gaps that are holding your company back. Refining the message Communication plans are not static documents, they’re designed to adapt as needed. Marketing is a big tent, encompassing both online and realworld forms of getting your message across. Social media advertising, flyers, local newspapers, email campaigns, billboards - every channel has its own audience and its own approach. Tracking what is landing where can help you refine your strategy and watch your numbers grow. Millennial drivers might appreciate a post-sale email, gen X-ers are likely to prefer a more personal phone call while gen Z keeps up with you on Twitter. Every demographic has their likes, dislikes, and needs. Your comms plan has to reflect that, plan for it, and put in place a system which allows you to measure results and remain flexible enough to build on success or pivot away from failure. ■
VOLUME 10, ISSUE 1 | 11
HOW USED CAR WARRANTIES ENHANCE EVERYONE’S EXPERIENCE POLITICAL WRANGLING, SUPPLY CHAIN ISSUES, DWINDLING RESOURCES, A WORLD IN ECONOMIC FLUX – there are
a lot of reasons used cars have become more popular in the last couple of years. Regardless of the reasons, the outcome has been a shortage of new cars. Those looking for a vehicle are increasingly turning to used - either as an alternative to buying new, or as a stop-gap as they wait for their new vehicle to eventually be produced and delivered.
12 | THE ONTARIO DEALER
In tandem with reduced volumes of new cars, costs of used cars have risen primarily due to low supply and high demand. Car buyers are spending more and want to protect that investment which makes warranties on used vehicles a natural add-on to the purchase price. Henry Hammond, Director of Marketing, Product and Technology at Lubrico Warranty (a wholly-owned subsidiary of Industrial Alliance Financial Group)
says that buyers of the past who may have opted out of an extended warranty may be more inclined to consider them. Extended warranties are creating better relationships among dealers, warranty providers and car buyers because it brings confidence and trust to the buying process. “Extended warranties help dealers and drivers maintain stronger relationships, increasing confidence and trust to the
USED CAR WARRANTIES warranty provider to get a sense of that provider’s track record. It’s essential that the dealer trust the warranty provider to follow through on commitments and standards. “Every time there’s a claim on a dealership for a car, we send out a notification to the dealer and another to the customer asking them how it went,” he says. “There’s constantly a check-back system.”
overall selling, buying, ownership and service experience,” he says. “Given current economic conditions, used cars are becoming more precious. Drivers are holding on to them longer, they need to be reliable. A trusted extended warranty gives drivers the peace-of-mind they need”. One of the supply chain/resource/ political issues slowing down new car production is a shortage of microchips. Roy Neufert, President and CEO of Global Warranty says the average vehicle has about 1,400 microchips in it. This contributes to a more complex vehicle that is much more expensive to repair, making a warranty that much more attractive. “People who are buying used cars are paying record prices for them and they want to make sure their ride is covered and that there’s no down time,” he says. The increased awareness of the scramble for used vehicles and the ability to shop online has changed customer shopping behaviour. Not only are customers savvier in researching vehicles, they are also looking up the warranty providers to the dealers they are considering. Now, the reputation of the warranty provider matters to the car buyer as well as the dealer. Dealers must choose the right partner. “Customers are doing that much more due diligence by themselves online before they’re buying the car. It’s all
online now: research critiques, reviews, price shopping.” Hammond says. “Google Reviews is huge. The driver does their research. Not only do they check out the dealer, they look up their extended warranty provider. They don’t just scan the star rating either. They read the actual reviews and make decisions based on what they read. Lubrico makes a point of reviewing our Google Reviews with existing and prospective dealers for the very same reasons.” When asked what else a dealer should look out for when choosing an extended warranty provider, he says, "Reputation, longevity, financial backing, fullyinsured and overall industry recognition. And don’t forget claims." He adds. “They better be easy to deal with when it comes to administering and paying claims. A warranty provider must be trustworthy, pleasant, supportive, flexible and professional. It’s not pleasant when your car breaks down. It can be downright stressful. The claims experience can make a big difference.” Plus, warranty providers need a broad nation-wide network of service centres and the warranty itself needs to have solid coverage at a good price. He also mentions that dealers like it when their F&I (finance and insurance) suppliers can digitally integrate their sales systems as it makes their jobs easier. Neufert adds referrals to the list of considerations. He suggests that dealers talk to other dealers who use the
The dealership floor was where all the business was done prior to COVID, he says. With pandemic restrictions, the buying process has moved primarily online. Dealerships are changing to line up with that online purchasing experience.
“Google Reviews is huge. The driver does their research. Not only do they check out the dealer, the look up their extended warranty provider." “People are deciding what car they’re going to buy before the even come in,” Says Neufert. “How they are going to finance it. We’re introducing that warranty piece earlier on.” For dealers, selling extended warranties is a relationship tool as well as a revenue tool according to Hammond. “Dealers realize a profit on extended warranties,” he says. “They’re able to offer their buyers peace-of-mind, and it can increase the probability of return service and future car purchases from those buyers.”
VOLUME 10, ISSUE 1 | 13
USED CAR WARRANTIES
Hammond also points out that dealers who don’t offer in-house service still achieve all the primary benefits of placing an extended warranty on their vehicles, provided the warranty provider can offer a national network of readily available, trusted and authorized service centres. And in terms of warranty coverage, Hammond says it’s important that dealers and drivers select the correct program for the particular vehicle and driver, as there are a variety of packages to choose from for this purpose. Warranties will include a range of benefits from towing and rental cars to electronic systems replacement and powertrain coverage. Neufert says today’s under-age-35 auto customer is very different from their older counterparts. “The buying process is changing and dealers need to change with it and so do warranty providers,” he says. “And that’s what we’re trying to do; to engage the 35-and-under customer which represents the biggest slice of the buying market.”
Whether it’s your business to sell New cars or Used cars... it’s our business to keep all your insurance needs covered
He anticipates it’s likely to be fall 2022 or later before new car production resumes previous levels. But even as those cars roll off the assembly line, are delivered to their owners, are driven for a few years and eventually are sold, warranties will still play an important aspect to those future used cars. “The standard stuff is more sophisticated systems than ever before,” says Neufert. “Every time they roll out a new car, it’s got new bells and whistles on it and it’s all electronics primarily. Those systems continue to evolve and they continue to be added to vehicles. Quite honestly, they are costly to replace, they can’t be repaired.” People need quality vehicles now more than ever whether it’s for work as a front-line worker or as a way to escape an uncertain world for a little while. Warranties bring more confidence and relationship to the used car buying process for all kinds of drivers. “Happier customers make happier dealers,” says Neufert. “We’re there to enhance that relationship, not to hurt it in any way.”■
Baird MacGregor Insurance Brokers LP Partnering with the UCDA and Pitcher & Doyle to Bring you Quality Insurance and Excellent Customer Service at Competitive Rates.
825 Queen St. E., Toronto, ON M4M 1H8 TEL: (416) 778-8000 TOLL FREE: (800) 268-1424
www.bairdmacgregor.com
14 | THE ONTARIO DEALER
WHO'S BUYING USED CARS | RONDA PAYNE
TECH TALK By Angela West
PICTURED ABOVE IS THE HUDWAY DRIVE
HERE’S THE LATEST ON WHAT’S HAPPENING IN AUTOMOTIVE GADGETS AND APPS.
15 | THE ONTARIO DEALER
As we turn our attention to 2022, it’s easy to forget about those earnest resolutions made on January 1st. If you’re struggling to stay motivated, don’t despair - there’s a gadget for every goal on this list of the latest tech for car-lovers and driving enthusiasts.
Whether you vowed to become more organized this year, to ditch your bad driving habits, or clear your car clutter, there’s an automotive accessory that can help. So if you’re looking to transform your life in 2022, start by transforming your vehicle!
VOLUME 10, ISSUE 1 | 15
TECH TALK | ANGELA WEST Safe Screen Time Distracted driving is responsible for 21% of fatal collisions each year, according to Transport Canada. If you find yourself constantly checking your phone for messages, opening your emails on the road or peeking at your Twitter feed, make this the year you concentrate on the road rather than your screen. Head Up Displays (HUDs) have become a safety phenomenon in recent years. These innovative tools turn your whole windshield into a user-friendly display that projects your speed, your notifications, GPS and more onto the glass in front of you, without obscuring your view. As the technology goes mainstream, manufacturers such as Volvo and Hyundai have been steadily incorporating it into their assembly lines and most newer models offer some version of the tool. But you don’t have to rush out and buy new, interested drivers can grab their very own HUD device, courtesy of Hudway. Their flagship product, Hudway Drive, pulls information from your car, your phone, and your device to give you all the information you need right in front of your eyes. You can screen your calls, get directions, and check your speed without interfering with your line of sight. Hudway Drive works in almost all cars all you need is a 12V lighter socket and space to mount it. The device comes with a range of accessories and an app so you can customize it for your vehicle. To find out more about Hudway Drive visit www.hudway.co Clean The Clutter Want less mess in 2022? Don’t forget about your car! Our vehicles often become a dumping ground for detritus - the chips that
16 | THE ONTARIO DEALER
investing in a compact and lightweight automotive air purifier this year. The IQAir Atem Car Air Purifier uses a HyperHEPA Plus filter to suck out odors, gases, and particles - giving you protection against invaders like pollen, soot, sulphur dioxide, and benzene. It cleans the air up to 20 times an hour to keep the inside of the car fresh even if you’re sitting in city smog during rush hour.
slipped between the seats, the peanut shells sprinkled over the back seats, the pet hairs collecting on the floor. Our cars carry us, our kids, our pets - and that adds up to a lot of dirt. Market leader Dyson released a new handheld vacuum last year that’s ideal for getting into all the annoying nooks and crannies that make cleaning a vehicle so difficult. The Humdinger is the company’s lightest model yet, weighing just over 2 lbs, and its narrow design allows it to easily slip between the seats to lift every bit of dust. Find out more about the Dyson Humdinger at www.dyson.com Breathe Easier Clearing out and cleaning up their vehicle is something all car owners should all be doing on a regular basis, but how often do you think about the air in your car? If you or a family member suffer from allergies or asthma, your vehicle could be a hidden hazard, trapping dust, pollen, pet dander and other airborne pollutants such as traffic fumes. These aren’t the sort of companions you want on long drives so consider
The system automatically engages when you turn on the ignition so there’s no buttons to press or screens to swipe. Just turn on the engine and let it do its thing. If you want more control, you can sync it to your smartphone via the Atem mobile app and, from there, set the fan speed, check on the filter life, and turn it on and off. For more information on the IQAir Atem Car Air Purifier visit www.iqair.com Be Prepared When it comes to driving, you can never be too safe or too prepared. Particularly in the winter months when the weather adds an extra danger. No-one wants to be stranded by the side of the highway as the temperature drops and the snow starts to fall. So don’t be. Add a portable battery to your vehicle safety kit so you can jumpstart your car and get back on the road quickly and safely. Battery maker Mophie recently upgraded its line of compact portable batteries, adding an air compressor to its newest model. The Powerstation Go Rugged with Air Compressor can jumpstart a 12V engine battery in seconds and comes with two USB ports so you can also charge your phone and/or personal device. But what makes this model special is the air compressor with a universal nozzle. This handy feature means you can also inflate
TECH TALK | ANGELA WEST your tires so there’s no need to panic if you get a slow leak or a puncture while traveling empty backcountry roads. Just hook it up, set the desired pressure level, and let the Powerstation do the rest. To find out more about the Mophie Go Rugged Powerstation, visit www.mophie. com Find Your Way January is when people promise to ‘get back on track’. We’re taking that literally this year with a new multi-faceted navigation app. Even the best drivers take a wrong turn sometimes. If you frequently find yourself on unfamiliar roads you know how stressful and time-consuming it is to get lost. Navigation apps can guide you to your destination but sometimes you need a little extra. That’s why map experts TomTom have added even more features to their app, all designed to make both urban and rural driving easier. Available on Google Play or the App Store, the TomTom GO Navigation app offers real-time traffic updates so you can alter your route to avoid rush hour or construction. It will also alert you of any fixed safety cameras so you can monitor your speed, pick out points of interest, and store your maps offline so you don’t need to use your data to plot your journey. You can integrate your contacts with the app so friends and family addresses are stored and easily available. And it syncs with your chosen messaging platform so you can send whomever you’re visiting an ETA. Throw in alerts on road conditions, weather, and even parking spots and this navigator is more like a co-pilot than an app.
See Clearer Dashcams are hardly new technology but the Lanmodo Vast Pro takes the gadget to a whole new level, adding crystal clear night vision so you can see what’s around you even on the darkest evening. With a range of up to 984ft, this dashcam allows you to see further than your headlight beams, so you can spot any obstacles well ahead of time. More field of vision means more reaction time, which means greater driver awareness and less risk of collisions.
The Vast Pro comes with both front and rear view cameras and gives exceptional visibility through even the roughest weather conditions. Blurry rain-smeared windows and foggy mornings are no match for this rugged cam which can also be set to continuous recording so you can capture your drive and play it back.
WeatherTech launched its new CupFone Duo at the end of 2021 - a dual-mounted version of its portable cell phone holder that fits into any automotive cup holder. No more fighting over whose phone goes where. The CupFone Duo fits into a single cup holder but branches out into two separate phone mounts so you can both easily access your phone on the next romantic road trip. Fully adjustable so you can find the ideal viewing angle, the CupFone Duo comes in two sizes to accommodate larger phones and cases. Find out more about the CupFone Duo at www.weathertech.ca You’re going to need some sunglasses for that road trip and if you or your partner are constantly losing your’s, you’ll love the new double glasses holder from Superior Essentials. This handy yet inexpensive gadget attaches to your car’s sun visor or air vent and stores two pairs of glasses. It attaches easily, holds any size glasses, and uses a secure strap to keep them in place. All you have to do is remember it’s there!
Find out more about the Lanmodo Vast Pro at www.lanmodo.com Treat yourself (or someone else!) If you missed Valentine’s Day, here's the perfect excuse to get yourself the gear you’ve always wanted - or to couple up and treat yourselves to a shiny new piece of tech.
Find out more about the Superior Essentials Double SunglassesGlasses Holder by visiting www. superioressentials.com ■
Check out the TomTom GO Navigation App at www.tomtom.com
17 | THE ONTARIO DEALER
VOLUME 10, ISSUE 1 | 17
DEALER PROFILE Thorold Automotive Solutions By Ronda Payne A Dad’s positive leadership leads to longterm family success REDUCE, REUSE, RECYCLE. Those could have been
the words of Lenny Serravalle when he started Thorold Automotive Solutions in 1982. He saw an opportunity to bring together numerous aspects of the car industry: auto recycling, new and used parts and used car sales. Not many would take on such a robust offering, but Lenny had worked in the collision industry and knew many different sides of the automotive business.
18 | THE ONTARIO DEALER
VOLUME 10, ISSUE 1 | 19
Thorold Automotive Solutions used tire dealer certified under the Goodyear brand. They sell all brands of new and used tires while also providing storage of winter tires for customers. It’s a diverse operation and takes close to 50 people to keep things running from the used car lot to the service bays and even the financing program. “We do offer all mechanical services for all makes and models,” Frank notes. “We have a large inventory of quality used recycled parts on hand.”
His son Frank shared that interest in cars and spent many hours following his dad around at his job in collision and then later around the family’s auto recycling and sales lot. Frank had hoped to share the 23-acre operation’s management with his dad and work together, but a tragic accident that left Lenny paralyzed, stopped his working career and led to a much more immediate transition. “I was presented with the situation of taking over operations abruptly in 2000 and have been running it since,” says Frank. “My father was always my role model. I grew up always being around cars and I just developed a passion. I dreamed of working alongside him as a child. Sadly, that didn’t happen because of my father’s injury.”
20 | THE ONTARIO DEALER
He earned a business degree with honours at Brock University and brought that education immediately to the dealership when he took over the business. Located in the city of Thorold, the source of its name, Thorold Automotive Solutions is different from just about every other used car dealer around because of Lenny’s unique approach when he built the business. “We are not just a car dealer,” says Frank. “Our facility provides solutions for all aspects in the automotive industry. We obviously sell cars, but we also recycle them and sell quality used parts.” The business also has an in-house service department and is a new and
But the business is about more than cars, parts, recycling and servicing. “Our goal is to develop relationships with our clients, not just sell them a vehicle,” he says. “We want to provide them the solutions to all their automotive needs, even after the sale.” And here is where that unique view Lenny had really comes into play. Not only can Thorold provide a vehicle and its maintenance for the life of the car, they can also responsibly recycle it at the end of its useful life. “I think the responsibility of recycling is so important and crucial,” Frank says. “I feel our clients feel the same.” Recycling as much of a vehicle as possible is a main focus for the business and it needs to be eco-friendly when it can be. It’s surprising what
DEALER PROFILE | RONDA PAYNE there are buyers for; everything from used anti-freeze and refrigerants can be sold to those who recondition them. Things like batteries, wheels, doors and other parts can often have a life as a used part in a customer’s vehicle. However, everything will come to a point when it’s no longer functional. Batteries go to a battery recycler, tires go to a tire recycler and oil is recovered to provide heat in oil furnaces or is also recycled. Being an auto recycler almost seems like a natural extension to the used car business. A ready source of parts for repairs, an environmentally-conscious way for customers to dispose of their vehicles and the know-how to help other customers looking for parts to do-it-themselves. Positioned south of St. Catharines, west of Niagara Falls, Thorold is Frank’s hometown. “I was born and raised in Thorold, so this town means a lot to me,” he says. “We have a great community that has supported us for close to 40 years.” The location is ideal for shipping both cars and parts across Canada and into the US. Plus, the proximity to larger cities allows the business to service a much larger customer based beyond those in Thorold. It was the right location to ensure 20 years of solid growth for the business, but that wasn’t necessarily Frank’s big goal.
“In the last 20 years, we’ve seen tremendous growth, that was never a hope of mine, it just seemed to happen on its own,” he says. “I just want to keep getting better at what we do, continually serving our clients to the best of our abilities, giving back to our communities that have been supporting us and to carry on my father’s legacy.” Part of that legacy is contributing to the community where the business is located to continue supporting Frank’s hometown, but it also includes supporting other groups that are particularly meaningful to the family. “As a company, we love to organize events such as car shows and BBQs to donate to various charities like Project Share, Spinal Cord Injury Ontario and Wellspring,” Frank says.
The business also recently established a multi-year partnership with Ronald McDonald House Charities to support the families staying at the Hamilton location when a child is hospitalized in the city. “This charity allows these families to have sleeping and eating accommodations next door to the hospital,” he says. Additionally, Thorold Automotive Solutions has a “Don’t Text & Drive” campaign. When it comes to spreading the word about the business, Frank feels word of mouth continues to be the most successful type of marketing. “I continually preach to my staff that if we provide a high level of customer service, the news travels fast,” he says. “However, we are also very active on social media and hosting events such as Earth Day, car shows and customer appreciation events.” All of this contributes to successful long-term relationships. “I hope customers leave and say that they had a very positive experience and received a high level of service,” Frank summarizes. “Also, that we build a relationship and that they trust in us for all their future automotive needs as we provide so many options and solutions.” ■
VOLUME 10, ISSUE 1 | 21
TRENDS By Chris Chase
TWO YEARS AGO, WHEN THE COVID-19 OUTBREAK was declared a pandemic,
things did not look good for the usedvehicle wholesale marketplace. Values plummeted as lockdowns forced car dealers to close their doors without knowing when they would be able to open to the public again.
By summer 2020, showrooms were open again – albeit with various safety precautions in place to help prevent the spread of COVID – and consumers rushed to buy the new and used vehicles they had been forced to put off purchasing earlier in the year. That surge in demand was the beginning of a remarkable upward trend in wholesale values in Canada. The Canadian Black Book used-vehicle retention index (commonly known as the CBB Index) was up 42.2 per cent year over year at the end of 2021. To put that into perspective, the CBB Index increased by just 13 per cent between December 2005 (shortly after its inception) and December 2020. CBB recorded its highest single-week increase in wholesale values “in recent history” on November 24, 2021, when prices rose by 1.23 per cent compared to the previous week. Wholesale values for Canadian used vehicles dipped for the first time in 20
22 | THE ONTARIO DEALER
weeks at the beginning of 2022. CBB attributes the minor decrease partly to new public safety restrictions prompted by the COVID-19 Omicron variant’s rapid spread, but it may also have been the result of a post-Christmas lull in consumer activity. Either way, it’s most likely a blip, rather than the start of an extended downward trend, given other factors that persist in the auto industry and beyond. New- and used-vehicle supply issues persist Those record-setting used vehicle values are the result of persistently low vehicle inventory at both new- and used-car dealers. Many car manufacturers are still enduring production shortfalls caused by a lack of the semiconductor microchips needed for the electronic systems in modern vehicles. Shoppers who can’t find the new vehicle they want are switching their focus to the used marketplace. That extra demand for preowned models is driving up wholesale values and, consequently, retail prices for used cars and trucks. And the microchip shortage shows no signs of letting up. The last time we reported on the semiconductor situation, auto industry CEOs like GM’s Mary Barra and Ford’s Jim Farley were predicting the shortage would last until at least the
middle of this year. In late December, CPA Canada, the national organization representing the country’s professional accountants, citing Intel CEO Pat Gelsinger, suggested semiconductor supply will not be back to a healthy state until sometime in 2023 – and for some industries, the shortfall will get worse before it gets better. The U.S. auto industry is feeling those supply pressures just as acutely as Canada’s car dealers. According to Tom Kontos, Chief Economist for KAR Global, the average wholesale price of a used vehicle was US$16,300 in November 2021, up $1,600 compared to summer 2021 and a remarkable 30 per cent increase over KAR Global’s figures from November 2020. When American used-car dealers can’t find inventory stateside – or can’t find it for a price they like – they come north to shop Canadian auction lanes and often snap up desirable vehicles before they even make it to auction. A steady
TRENDS | CHRIS CHASE Canadian dollar, which has hovered around US$0.80 for the last few months, has helped promote the flow of crossborder commerce, further stretching Canada’s already limited supply of inventory. Short-term pain could bring long-term change The semiconductor shortage is prompting calls for changes to how and where the high-tech components are manufactured. In May 2021, a group of Canadian business leaders created a consortium called Canada’s Semiconductor Council to promote the establishment of semiconductor manufacturing capacity in Canada, with the aim of positioning the country as “a global developer, manufacturer and supplier of semiconductor products.” The council issued a November 2021 report called Roadmap to 2050: Canada’s Semiconductor Action Plan, in which the group suggests that homegrown semiconductor manufacturing is key to keeping Canada’s auto industry viable in the long term. According to the report, electronic systems powered by semiconductor chips will make up half the cost of the average car by 2030. The report also suggests that Canadian
semiconductor production facilities would likely become regular suppliers not only to car manufacturers, but also to companies that make chip-intensive consumer electronics. Automakers are also thinking about ways to shore up supply chains against future disruptions. Last November, General Motors announced it is working with chip suppliers to create a dedicated supply of as many as 10 million semiconductors annually for use in vehicles sold in the Canadian and American markets. But building semiconductor manufacturing capacity doesn’t happen overnight. According to a December 2021 report by Automotive News, a new STMicroelectronics chip factory near Milan, Italy, that has been in the works since 2018 and recently started tooling up to begin production, won’t deliver its first chips until late 2023. When will wholesale values stabilize? The latest unknown is the COVID-19 Omicron variant that began spreading across North America in December. While it seems to cause less severe illness than previous versions of the virus, high infection rates are causing labour shortages as those who catch it recover at home, but it remains to be
seen if that will have a measurable effect on the auto industry. If the experts are right and the semiconductor shortage eases in the second half of 2022, used-vehicle values in Ontario and Canada-wide should come down and stabilize toward the end of this year as new-vehicle production gets back up to speed. What everyone is waiting to see is just how much wholesale prices actually fall. It’s possible that high usedvehicle prices will simply be a part of the way things are going forward, even after the industry recovers from its current state of disarray. We hate to say it, but there are still too many unknowns for us to confidently predict how things will go for Ontario’s used-car industry in 2022. ■
Let us help your dealership with:
VOLUME 10, ISSUE 1 | 23
THE OLD CAR DETECTIVE RON PICKFORD’S 1957 METEOR RON PICKFORD OF TORONTO
remembers the 1957 Meteor Rideau 4-door hardtop he purchased in 1959: “I performed a mild customizing and repaint to enter it in the 1960 Speed Sport car show in Toronto. I did all the work outside on the cement pad in front of the garage at our house in South Etobicoke and I had my own gas welding equipment.
24 | THE ONTARIO DEALER
“My friend Hans Reiger helped as we removed the Meteor logos, installed a tube grille in the style of that time, added solenoid operated doors, had front and rear bumpers re-chromed, and repainted the car Ford Colonial White. “The car looked great, but after seeing what the lads in California were doing in my Rod and Custom magazines, Hans and I decided we could do just as well. “I loved the ‘60s Chrysler quad headlamps so we set to work to extend the front and rear fenders slightly to incorporate the quad set up. I bought the front chrome trim from the local Chrysler dealer and we fabricated everything else.
By Bill Sherk
“I fabricated the metal for the front and rear on the weekend in the metal shop at Air Canada where I worked. We also opened up the taillight lens area for the Batmobile look with custom lenses made by a plastic manufacturing firm right here in Etobicoke. “After six weeks or so, we were ready for paint. I had a friend who worked for a large paint manufacturer and said they were working on wild colours for various firms, including Chrysler, to be used in the future. “One Saturday afternoon, a couple of gallons of paint were dropped off at our place that later in the ‘60s and early ‘70s
appeared on Dodges and Plymouths as Plum Crazy or In Violet. “The Meteor was substantially lowered and the engine was now a Johnny Osborne modified Ford 312 cubic inch V8 blueprinted and balanced with just about every internal part upgraded. “This was one fast custom car, not just an all-show and no go, managing high 14 seconds and low 15 seconds ET at local drag strips, very respectable for that time and with the weight of the car. “I drove the car in purple for a couple of years, then moved on to other projects. I finally sold it to a young fellow with great ideas to restore its former glory, but I lost touch with him, so I really don’t know what happened to it.” Ron Pickford’s 1957 Meteor Rideau 500 4-door hardtop is one of only 691 built in Oakville by Ford of Canada. Maybe it’s still around!
PHOTO (Page 24): Ron Pickford behind the wheel of his mildly customized 1957 Meteor 4-door hardtop. PHOTO (Above): Hans Reiger (r.) and Ron worked on the Meteor together. PHOTO (Top Right): Ron Pickford with trophies, friends, and Meteor at 1960 Speed Sport car show in Toronto. PHOTO (Centre Right): Body ready for purple paint. PHOTO (Bottom Right: Ron Pickford and his purple custom with its beautiful 1957 Meteor Rideau 500 side trim. ■
VOLUME 10, ISSUE 1 | 25
THE COMMON LAWYER Ontario's Overhaul of the Towing Industry – Key Changes Taking Place and Ahead Ministry of Transportation can tow vehicles on stretches of the 400-series highways.
By Justin M Jakubiak and Keira Zlahtic FIRST, HAPPY NEW YEAR TO ALL! Wishing you a
healthy and prosperous 2022.
We expect we are not alone in hoping for some real changes this year after almost two years of the pandemic. In this article we will discuss some significant changes in store in the world of towing, which are sure to impact dealers and consumers alike. Over the past couple of months you may have seen signs on some 400-series highways referring to "restricted tow zones". These zones are part of the Tow Zone Pilot Project introduced by the Ministry of Transportation, which mandates that only authorized tow companies on contract with the
26 | THE ONTARIO DEALER
The Tow Zone Pilot Project, in turn, is part of Ontario's broader plan to increase oversight of the towing industry in general, and to protect consumers who engage tow services. The main way the province intends to do this is through the Towing and Storage Safety and Enforcement Act, 2021, S.O. 2021, c. 26, Sched. 3 ("Towing Act”). The Towing Act was enacted as Schedule 3 of the Moving Ontarians More Safety Act ("MOMS Act"), a broader legislative package intended to increase road safety in Ontario by increasing penalties for dangerous driving, protecting more vulnerable road users, such as pedestrians and highway workers, and improving commercial-truck safety, among other things. The MOMS Act is being rolled out in stages, with the first stage having come into force on July 1, 2021. The Towing Act was tabled in response to "concerning road safety trends" including "growing violence, criminal activity and consumer protection issues in the towing industry". Of specific concern were tow truck "turf wars", which have seen cases of arson, extortion, drug trafficking, and even murder plaguing the industry.
The Towing Act, the Tow Zone Pilot Project and a Joint Forces Operating Project (which is a provincial towing task force), are three of the main ways the Province intends to clean up the towing industry and better protect consumers. On June 3, 2021, the MOMS Act and Towing Act received Royal Assent and await a date to be put into force. Certain provisions, such as those relating to restricted tow zones, are already being rolled out through the Tow Zone Pilot Project. We will not attempt to outline each provision of the Towing Act, but provide a high-level overview and some commentary on the more salient provisions. Requirements under the Act The Towing Act will have wide-ranging effects on the towing and storage providers' operations, the primary effects being increased oversight and regulation of the towing industry. For instance, the Towing Act includes requirements on disclosure, fee scales, and authorizations, which will complement the requirements already in place for these matters under the Repair and Storage Liens Act ("RSLA") and the Consumer Protection Act ("CPA"). The provisions of the Towing Act will add another layer of protection by providing clarity and ensuring minimum standards for all tow operators.
Eligibility The Towing Act does not stipulate what the requirements for a towing or storage certificate will be – this will be addressed by the regulations under the Towing Act and in any standard form applications released by the Ministry of Transportation, neither of which are currently available. It is likely, however, that the requirements for a certificate will align with the Motor Vehicle Dealers Act ("MVDA")'s requirements for registration as a dealer or salesperson given the intent of both Acts.
The most significant change created by the Towing Act will be the requirement for tow operators, tow truck drivers and vehicle storage operators to be licenced under ss. 2, 3 and 4 of the Act. Like with car dealers and automotive salespersons, licensing will help ensure that tow truck operators abide by certain standards designed to protect consumers. Under s. 2(1), no person will be able to provide or offer to provide towing services, or hold themselves out as a tow operator, unless they have a valid tow certificate. Under s. 3, no person will be able to drive a tow truck to provide towing services, or hold themselves out as a tow truck driver, unless they have a tow certificate. Under s. 4, no person will be able to provide or offer to provide vehicle
storage services, or hold themselves out as a vehicle storage operator, unless they have a vehicle storage certificate. A "tow operator" is defined in the Towing Act as "a person who, directly or indirectly, alone or with others, operates, manages, supervises, runs or directs the offer of or provision of towing services" and a "tow truck driver" is defined as "a person who drives a tow truck for the purpose of providing towing services”. A "vehicle storage operator" has the same definition as a tow operator, but with respect to storage services. These all-encompassing provisions leave no room for anyone to provide tow services without the requisite authorization. The Motor Vehicle Dealers Act for Tow Providers?
The MVDA and the Towing Act are consumer protection statutes that establish oversight of their respective industries. We can expect a similar requirement as under the MVDA that each licenced person or entity complete an application, undergo a background check, disclose previous charges or convictions under any law, demonstrate financial responsibility, and generally satisfy the Registrar (or, in this case, the Director of Towing and Vehicle Storage Standards) that they will carry on business with honesty, integrity, and in accordance with the law. Powers to issue, revoke, etc. While the specific requirements to be eligible for a licence are not yet known, the Towing Act grants the Director certain powers similar to those under the MVDA with respect to the issuing and revocation of licences. Section 6 of
Thrill different. thrillhousestudios.com
VOLUME 10, ISSUE 1 | 27
Now an administrative authority exists to address consumer concerns with respect to tow operators, which should, in theory, resolve consumer complaints more effectively and efficiently should any arise. The introduction of the Towing Act will also redirect disputes away from the ever-backlogged Small Claims Court toward a more specialized authority.
the Towing Act allows the Director to attach conditions to a licence, ss. 7 and 8 allows the Director to refuse, suspend or revoke a licence, and s. 9 allows a person to appeal a decision by the Director to refuse, suspend or revoke a licence. Practices, Inspections and Penalties Once licenced, tow and storage operators will be required to maintain certain standards of equipment, maintenance, and record-keeping, as well as follow certain requirements with respect to estimates, invoices, charges and providing access to vehicles (see ss. 11-37 of the Towing Act). Sections 53 and 54 of the Towing Act allow for inspections of tow trucks, business premises, and even a residence (with the consent of the occupier). These provisions mirror the inspection powers under section 15 of the MVDA. Administrative penalties may be imposed under s. 45(1) of the Towing Act, and an administrative penalty may be appealed under subsection (7). Under s. 45(10), the maximum administrative penalty on a person contravening the Towing Act is $100,000. The Towing Act also sets out offences and monetary penalties, similar to s. 32 of the MVDA. The penalties vary according to the nature of the offence, but begin at $250 to a maximum of $50,000, and a six-month term of imprisonment for individuals, and a maximum fine of $100,000. In comparison, the maximum fine for an individual under the MVDA is $50,000 and a prison term of two years, and the maximum fine for a corporation is $250,000. Enforcement What remains to be seen is how stringently the Towing Act will be enforced. A new set of rules has no power unless its provisions are enforced by the prescribed ministry. Assuming the Towing Act is brought into force in the near months, it will come
28 | THE ONTARIO DEALER
into force at an interesting time for Ontario's motor vehicle landscape. The Office of the Auditor General recently completed a report on OMVIC, which found that, among other things, OMVIC underperforms in protecting consumers and does not resolve consumer complaints in an effective or efficient manner. We have found through our work in recent months that OMVIC is taking a harder stance against dealers and salespeople with respect to alleged breaches of the MVDA, in anticipation of and in response to this audit. With OMVIC's harder stance and the new Towing Act, Ontario clearly has a renewed interest in protecting, or appearing to protect, consumers who purchase vehicles and have their vehicles towed and stored.
Consumers should have more peace of mind when hiring a tow operator on contract with the province on certain highways, as well as more confidence that their interests will be protected when they engage any tow operator once the Towing Act is in force. Measures already taken such as the Tow Zone Pilot Project, while reducing choice for the consumer, serve to mitigate some of the main concerns that the Towing Act addresses. Overall, the changes already in effect, and those coming down the road for the tow industry, are welcome, but only if they can be adequately staffed and fairly enforced by the Ministry of Transportation. For staffing, the Ministry of Transportation should be prepared for a surge of applicants for licensure; hopefully they will not be in for a long wait, as many OMVIC applicants are.
While there are resources and political will to enforce the MVDA more We are interested to see how Ontario stringently, the Towing Act will need administers its new towing authority at to be given similar resources to have a time of heightened concern around real impact and effect. To adequately consumer protection. Based on a review enforce the Towing Act, there will be a need for additional staffing of inspectors, of the Towing Act, it appears that the registration officers, and prosecutors, to government has brought tow operators and drivers into a group very similar name a few. to motor vehicle dealers. Whether With the new threshold requirement this makes sense or is necessary is a of certification, we anticipate seeing question for an entirely different article. fewer overall tow operators, but rather a group of larger operators with a greater Justin is a Partner with Fogler, Rubinoff share of the tow services available to LLP and is recognized by the Law consumers in Ontario. This may very Society of Ontario as a Specialist in well change the current tow industry Civil Litigation. This article was written landscape and rid the roads of some of with Adam Varro, an associate with the bad eggs. Fogler, Rubinoff LLP and a member of the firm's automotive and transportation Historically, some tow operators flouted law group. ■ the RSLA and CPA without consequence.
ABOUT JACK NOTMAN: 69 CHEVELLE THE CAR INDUSTRY HAS BEEN IN JACK’S BLOOD SINCE HE WAS A KID - pumping
Jack is still a regular at shows, cruises, gas at his Dad’s Fina and Shell stations. and auctions, and as he says, “the love He sold cars during his college years then continues”. As the country song says, “do went on to stints as District Manager with what you love, and call it work”. General Motors and American Motors. With Hyundai’s arrival in Canada, Jack "It would be understandable to forget a set up the original Ontario dealer warm, sunny Friday afternoon in late network in 1984. If there is an original October, 1968, since it's so far back in our (1984-1989) Hyundai dealer in your area, past, but this day was special. he/she may recall Jack’s name. A couple buddies and I skipped college In 1990 he opened Notman Motor Sales classes and on the way to a local bar, I in his home town of Morrisburg, Ontario, fell in love. Walking by a local Chevy then in 2001 bought a Chrysler store dealership they were unloading a in Cornwall which became Notman beautiful orange convertible that caught Chrysler Dodge Jeep. He sold, and semimy eye. I remember, the guys went on retired two years ago. for a beer, but I was smitten and stayed behind. I waited until the car was on Now his company, Enstar Holdings the ground then checked every inch of a Inc., buys/sells, or more accurately stunning 1969 Monaco orange Chevelle collects, classic convertibles. Shipping SS convertible. "396" emblems on his favourite car, this ‘69 SS, south for the the fenders designated what turned winter was truly a highlight for a car guy. out to be a 375 HP car. Wow. The driver,
noticing my admiration and respecting my questions, simply said "it's an L-78 son, with lots of power". And it had a 4-speed. This black-topped and matching interior beauty has never left my mind. That's true love at first sight. Fast forward to 2017 and after several years of looking, my search took me to Washington State after hearing about an upcoming estate sale of a similar car. I immediately contacted the seller and after a long conversation, and even longer awaiting confirmation from my Ontario bank about sending funds to his western U.S. bank, the deal was done. I finally owned my dream car, and soon had it shipped home to Canada. I learned the father of the gentleman I bought it from, found the car a few years earlier as a typical barn find in New Jersey. He had it shipped cross country and spent two years completing a meticulous body-off restoration. As it turned out, he documented everything and supporting that, it came with an extensive album of photos, and lists of costs and receipts. As the car was found minus it's original 396 engine, he decided to restore it to L-78 specs to go with the original 4-speed. I've often wondered.....karma? The only
VOLUME 10, ISSUE 1 | 29
ABOUT JACK NOTMAN non-original addition was the installation of a black fabric top rather than the factory vinyl offering, and as I mentioned he was so particular, everything was documented. The result is a show-stopper! Whether cruising or at the gas pumps, it never fails to attract attention. Now retired, and with family approval, I decided to escape an Ontario winter (2019-2020) and extend it's summer season, and had it shipped to Florida. That certainly heightened the fun factor and kept everyone, well me, smiling for several more months." (As you can see by my accompanying photos, the palm trees in the background aren't native to Ontario. They're taken during that southern winter and now with COVID "in the rear view mirror", I hope to repeat over and over again.) All I can add is.....what a hobby! Especially when over 50 years later, that "first love" still makes me smile. ■
photosbypierce.com 130 Industry St., Unit 36, North York, ON M6M 5G3 e info@photosbypierce.com www.photosbypierce.com
30 | THE ONTARIO DEALER
The largest inventory in the industry at your door step • • • • • • •
160 NAPA stores for easy service and delivery Priority access to all parts for any year, make or model Brakes, batteries, shop supplies, tools & equipment and more Lower reconditioning costs thanks to competitive pricing Market-leading loyalty rebates & program rewards Consolidate your multi-dealership network for an annual rebate Industry-leading parts and labour warranty
CURRENT PROMOTION
Q1
LET THE GAME BEGIN! Win 1 of 3 pairs of tickets for Raptors Game on April 7, 2022 To Qualify: • $10,000 minimum net purchases in Q1 • Growth in 2022 Q1 compared to 2021 Q1 Qualifying Period: January 1 to March 31
Draw in April 2022
Do you want the chance to be a winner? To enroll to this program, you just have to be an active UCDA member and open an account at your local NAPA store. No activation fee. It’s quick and easy!
Promotion is exclusive to active UCDA affiliates from January 1 to March 31 2022. Only net qualifying purchases are eligible for this promotion. Winning location will be notified in April 2022.
Click here to join us
2022 MARKETING PROGRAM
Back in ‘87 the average car cost $9,200, power steering was an option and Global offered 1 warranty package Today the average car costs around $45,000 and our customers have hundreds of different coverage options to choose from. And while some things have changed over the years, two things have remained constant. First is people’s desire to have a car ownership experience free from the worry that comes from unexpected repair bills, and second is our commitment to making that happen. That’s why today our suite of warranty products has grown from its humble beginnings to include the ULTIMATE Star Series, ULTIMATE Test Drive, ULTIMATE RV Series, Tire & Rim, Global Asset Protection and Global Glass. 2022 is shaping up to be a banner year as we work on rolling out new innovative products designed to keep your customers happy and your dealership exceeding their expectations.
471 Waterloo St., London, ON, N6B 2P4 | Toll Free: 1.800.265.1519 | sales@globalwarranty.com | globalwarranty.com
32 | THE ONTARIO DEALER