The Ontario Dealer - Volume 11 Issue 1

YOUR CONNECTION TO ONTARIO’S USED CAR INDUSTRY

THE ONTARIO UCDA

VOLUME 11, ISSUE 1

THE OFFICIAL MAGAZINE OF THE USED CAR DEALERS ASSOCIATION OF ONTARIO

PLUS OLD CAR DETECTIVE: /18

> INSIDE: CYBERSECURITY AND YOUR DEALERSHIP /10 HOW TO BECOME A BETTER LEADER /13 WINTER 2023

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2 | THE ONTARIO DEALER

THE ONTARIO UCDA

IN THIS ISSUE

VOLUME 11, ISSUE 1

USED CAR DEALERS ASSOCIATION OF ONTARIO

Winter 2023

230 Norseman Street, Toronto, ON M8Z 2R4 Tel: 416.231.2600 Toll Free: 1.800.268.2598 web@ucda.org

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By Angela West

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Cybersecurity And Your Dealership

10

ONTARIO DEALER is published by Laservision Graphics Ltd. four times a year.

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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 Advertising Inquiries Shannon Coleman slk.coleman@yahoo.ca 647.269.4191

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CONTRIBUTORS Chris Chase, Ronda Payne, Bill Sherk, Angela West If you are interested in having your personal opinion heard, contact the editor at gina@ontariodealer.com

Drive Your Team To Success - How To Become A Better Leader

By Angela West

13 Warranties To Benefit Customers And Dealers

05 07 16 18 20 21 24

The Driver’s Seat Jim Hamilton

The Law Matters Jim Hamilton

Tech Talk Angela West

Old Car Detective Bill Sherk

Trends Chris Chase

All-in-price advertising OMVIC

The Common Lawyer Justin M. Jakublak

Sponsored by People's Choice Warranty

22 Are E-Signatures and E-Contracts The New Sales Tools?

By Ronda Payne

15 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.

PUBLISHER’S NOTE Due to supply chain issues, it has been a challenge to source paper since the beginning of COVID. Because of that, our magazine has been forced to reduce the number of pages, as well as reduce the number of issues from four per year to three.

The final issue this year will be the October/ November issue. We hope that we can go back to four issues per year in 2023.

Thank you for your continued readership and your support.

VOLUME 11, ISSUE 1 | 3

If you sell motor vehicles in Ontario you must be registered with OMVIC Registration with OMVIC helps to maintain a professional motor vehicle sales industry Motor vehicle sales in Ontario are regulated. So, all motor vehicle dealers and salespeople must be registered with the Ontario Motor Vehicle Industry Council (OMVIC) before entering into any form of discussion or negotiation with a potential buyer, seller or lessee of a new or used vehicle, even if the salesperson is not signing the deal. It’s the law.

OMVIC registrants have access to benefits such as a dealer support team, guidelines, resources, educational webinars and can promote their Certified in Automotive Law and Ethics (C.A.L.E.) designation.

To learn more about registration, visit omvic.ca and click the dealer/salesperson tab to access free resources including information on: • How to become a registrant • Fees and classes • Maintaining your registration OMVIC’s registration team can help you through the registration process. For more information, contact registration@omvic.on.ca or call 1-800-943-6002.

4 | THE ONTARIO DEALER

THE DRIVER’S SEAT Operations mind) dealers have shown they can respond to change. Some even thrive on it. You would be hard pressed to find more innovative or imaginative entrepreneurs in any industry.

Dealers that rise above the winds of change, and enjoy continued success, focus on operations at all levels. At least the ones that have longevity do.

By James Hamilton, Interim Manager and Legal Services Director, UCDA

ON THIS, MY FIRST ARTICLE FOR THE DRIVER’S SEAT, I am reflecting on the fact

that the one thing that remains constant, as they say, is change.

Any dealer or manager knows that how they respond to change, how they ‘read the tea leaves’ will have a marked effect on future performance and success.

Since I started at the UCDA in 1996, I have been witness to striking changes in product (witness the advent of electric and hybrid vehicles), services and supports.

I have also seen how resilient dealers are. Through good times and bad (2008/2009 and COVID-19 come to

Recognizing the effect of lighting fast change on your staff is key, because your people are key. Change is hard, let’s face it, no one really likes to have to pivot from the old ways that are tried and true.

It takes us out of our comfort zone, but that does not mean a dealership can ignore the need to adjust. Can you imagine a dealer today who does not, even in a small way, participate in online marketing, a virtually unknown aspect of sales in 1996?

The next task is physical operations, whether that be on the sales floor, F & I, the virtual floor, or the service side.

With margins growing tighter and tighter, efficiencies must be identified and exploited. Add inflation into the mix, and these conclusions seem inevitable.

A shift may be needed from ‘getting a sale’ to giving advice and support to the buyer. As they say, the sales will follow, but you need to build trust first and foremost. For some dealers this is not new thinking, for others, it may be a different way of looking at things.

So please enjoy this issue of our magazine, I hope it helps you to consider some new perspectives, and either find assurance you are on the right track, or help you onto paths you may not have considered.

In addition to our regular articles, such as The Law Matters, Tech Talk, The Common Lawyer and The Old Car Detective, our theme this issue is Operations so please enjoy the following articles in this issue of The Ontario Dealer: • Cybersecurity and Your Dealership • Become a Better Leader • E-signatures and E-contracts You can reach me anytime at j.hamilton@ucda.org with any comments or suggestions for the magazine!

Finally, let’s not forget why we are all ultimately here ... our customers! To stay out front of change and in front of your client base, requires dealers to think like they do.

VOLUME 11, ISSUE 1 | 5

Your Site ... Your Cars!

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THE LAW MATTERS Childhood Cancer Charity Through an evidence-based innovative program that merges modern integrative medicine with traditional martial arts, Kids Kicking Cancer’s program addresses the overwhelming needs of children with illness. Specially trained black belt martial artists teach breathing, visualization, and relaxation techniques, in addition to traditional martial arts moves, to help empower the children and provide them with a sense of power, peace, and purpose.

By James Hamilton, Interim Manager and Legal Services Director, UCDA

HOW, YOU MIGHT ASK, can martial

arts have anything to do with helping children cope with the pain, stress and confusion caused by cancer? One of the charities the UCDA supports is called Kids Kicking Cancer.

Kids Kicking Cancer began in 1999 with ten children at Children’s Hospital of Michigan and is now empowering over 5,000 children in 48 hospitals in 5 countries.

Using martial arts therapy, the program teaches children to: • Regain a sense of control over the chaos of their lives.

• Become empowered partners in their own healing.

• Push away the messages of pain, fear, and anger.

• Provide inspiration and light to others facing life-challenges.

• Teach other children, and even adults, how to take control.

• See themselves as victors, not victims.

Story about Isaac Powerful Martial Artist Isaac’s mom shared:

In 2010, Canada’s first Kids Kicking “Isaac went to his first Heroes Circle Cancer program was piloted in Windsor. class early in July. It's a karate class The program expanded to London in designed for children (and their 2012 with service at Children’s Hospital, siblings) going through cancer London Health Sciences Centre and treatments. community programs. In 2018, a community-based program began in The organization is global. It started in Ottawa. the US and has chapters across Canada, Italy, Israel, Australia and in three countries in Africa.

‘Specially trained black belt martial artists teach breathing, visualization, and relaxation techniques, in addition to traditional martial arts moves, to help empower the children and provide them with a sense of power, peace, and purpose.’

We call it pup-fu in our house because the only exposure that Isaac has ever

VOLUME 11, ISSUE 1 | 7

2023 IS YOUR YEAR TO WIN! NAPA MARKETING PROGRAM - Q1 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 • Lower reconditioning costs thanks to competitive pricing • Brakes, batteries, shop supplies, tools & equipment and more

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had to martial arts is in Paw Patrol. The word "karate"...or even "cancer" are lost on him.

This was a very new experience for Isaac. Keeping his attention for an hour is a challenge. There was more wiggling than following. I was a little horrified, but the Sensei's were so good about it.

Days later, I learned that between his sporadic twirling and unexpected yoga poses, he was listening. When he came home from his PET Scan, he told me that he did his breathing and showed me his big inhales and exhales.

It's really heartwarming to see Isaac get excited about something new. I know that he's excited for his next pup-fu class.

Isaac also received his first white belt in the Belting Ceremony in August this year. With great excitement, after receiving his belt, he ran over to mom proudly and shouted, ‘I won!’”

Story about Ollie: Two years ago this month, 10-yearold Ollie Acosta-Pickering and his

now 14-year-old sister, Abby, started attending Ottawa Heroes Circle classes online with Sensei Lyne and Sensei Cody.

After being diagnosed in 2019 with Anaplastic Large Cell Lymphoma, Ollie had relapsed twice, went blind and in July 2020 needed a stem cell transplant with Abby's cells. Just getting home from Toronto after the transplant and still in a wheelchair, Ollie joined his first Heroes Circle class. With the help of Kids Kicking Cancer, Ollie progressed quickly, getting stronger and more agile each week.

Within a couple of months, he was out of the wheelchair and getting around with a mobility cane. He learned Power Breathing to manage his anxiety and pain and uses the breathing techniques to make medical procedures easier.

Ollie back to school and is doing fantastic. He also does a lot of public speaking to raise awareness about childhood cancer and Kids Kicking Cancer Canada. He recently earned his yellow orange belt and is a confident and Powerful Martial Artist who is teaching the world! ■

VOLUME 11, ISSUE 1 | 9

CYBERSECURITY AND YOUR DEALERSHIP

By Angela West

Last year, nearly half of the country’s small businesses experienced a cybersecurity incident, according to the Canadian Federation of Independent Business (CFIB).

IT ’S NOT JUST LARGE ORGANIZATIONS THAT FALL PREY TO CYBER ATTACKS.

Small businesses - including auto dealerships - are also prime targets for opportunistic cyber criminals.

10 | THE ONTARIO DEALER

That number is set to climb in 2023.

With more sophisticated digital tools at their disposal, hackers are becoming more inventive putting businesses on the defense.

If your dealership doesn’t have comprehensive cybersecurity policies and practices in place, you’re exposing your company to unnecessary risk.

Cybersecurity should be one of your organization’s most urgent New Year’s Resolutions in 2023. With the right tools, training, and mindset, you can secure your defenses and focus on what matters most - your customers, your employees, and growing your business.

CYBER SECURITY | ANGELA WEST

Know the threats You can’t fight a threat unless you know what you’re up against.

Hackers use a range of different tools and tactics to get around security safeguards, but the most common attacks typically involve phishing and malware or ransomware.

Phishing The boss emails to double check an account number. Except that it’s not the boss and you’ve just handed over your company’s bank details to a hacker. This type of attack, where a victim is tricked into disclosing valuable information, is known as phishing.

It’s not new, but it is becoming more widespread, and much more sophisticated. If your employees aren’t trained to spot suspicious communications and keep an eye out for phishing red flags, they could inadvertently hand over passwords, credit card numbers, and even a customer’s personal information.

Malware/Ransomware Malware is software that exploits vulnerabilities in your dealership’s IT infrastructure, finding gaps that let them access your network and steal private data. Malware attacks soared during the pandemic when more employees began working remotely from unsecured personal devices. Ransomware attacks occur when that malware is used to hold a company hostage, extorting payment for the return of the information and threatening to leak it or sell it if demands aren’t met.

Train your staff For many businesses, the most pressing cyber threat is close to home.

If they haven’t been properly trained, your employees are a huge cybersecurity liability and an easy mark for phishing and malware attacks. From poor passwords to being duped, there are lots of ways your employees can unwittingly compromise your system.

The first step to creating a more aware team is to build a company-wide cybersecurity policy so staff know exactly what’s expected of them. This should include off-site protections for when employees are working from the road, remotely, or on a hybrid schedule.

Your cybersecurity policy should also make room for training, and continuous monitoring so that training can be reevaluated and updated as needed.

Only 11% of Canadian businesses provided mandatory cybersecurity training for their employees in 2022 and just 8% rolled out optional training, according to the CFIB. But if you’re cutting corners with cybersecurity education, you’re playing a very risky game. Your staff are your first line of defense, and they need to be properly armed if they’re going to keep out intruders.

Practice good cyber hygiene Training should cover the basics of good cyber hygiene, starting with

password protection. Hacking weak passwords is one of the most common ways for cyber attackers to access your system. Don’t make it easy for them. Choose passwords that contain a random mix of symbols, numbers, and letters. Never share passwords with anyone, change them regularly, and don’t write them down.

You should also consider multi-factor authorisation (MFA), a multi-step process that asks users to provide not just a password but also a unique code or other identifier before they can log in. This is especially important when employees are using a number of different devices to access the office network.

MFA is just one element of adopting a Zero Trust approach. The Zero Trust model is exactly how it sounds - never trust, always verify. In practice, this means giving authorized users limited access to whatever they need, rather than blanket access to all parts of your dealership’s system. It also means continually verifying their identity and appraising their settings so even if the worst happens and their account is breached, the hacker won’t be able to ransack your entire operation.

Beyond policies and training, your dealership needs to adopt a cybersecurity culture that ensures everyone knows their individual responsibilities and is alert to threats.

Incidents happen when companies get complacent so it’s crucial that every department, from sales to HR, is laser-focused on security when doing anything online.

VOLUME 11, ISSUE 1 | 11

CYBER SECURITY | ANGELA WEST Keep your security software current Your team may be trained, but do they have the right tools? At a minimum, your dealership should have good quality antivirus software and, for extra protection, consider antimalware software, phishing filters, and sturdy firewalls.

If you’re using a cloud-based office suite, make sure every employee is familiar with the security settings on their account, and can adjust them as needed.

And don’t forget to regularly update your software when prompted. In the fast-paced world of tech tools, you need to be continually on guard to stay ahead of hackers.

Consider hiring help Outsourcing is an emerging trend in cybersecurity due to the shortage of skilled security experts and the growing complexity of threats.

A managed service provider can offer a range of services, depending on your budget, from running a full assessment of your current IT capabilities to cloudhosting and 24/7 monitoring. They can also help you create a recovery plan to mitigate any fallout if the worst does happen, and stress-test your systems to close any gaps.

especially for those with a large online footprint such as an e-commerce platform. Any time your business is online, it’s at risk. A good insurance policy can help you confidently manage that risk.

Invest in insurance for ultimate peace of mind

The new year brings with it plenty of new threats, according to the Canadian Centre for Cyber Security.

Cybersecurity insurance is fast becoming a must-have, even for small businesses, as attacks get more common and more costly.

Data breaches aren’t just bad for your reputation, they can put a serious dent in your balance sheet too. Last year, data breaches cost Canadian organizations around $7.3 million, according to IBM. Cybersecurity coverage typically covers any damage to your system and/or software, as well as third party losses if customers or partners are affected.

Some policies also cover legal fees, any costs associated with investigating the breach, and data restoration and recovery. These can be added as a rider to any existing policy, or on a standalone basis.

ONLY 11% OF CANADIAN BUSINESSES PROVIDED MANDATORY Having this kind of policy in place is CYBERSECURITY a good idea for all dealerships, but TRAINING FOR THEIR EMPLOYEES IN 2022 Calling in the professionals gives you peace of mind that you’re as protected as possible, and it doesn’t have to blow your budget. In fact, outsourcing IT can actually help dealerships save money as it significantly lessens the chances of an expensive security breach and enables businesses to do more with less by making their systems more efficient.

12 | THE ONTARIO DEALER

Cybersecurity outlook for the year ahead

The group’s recently released National Cyber Threat Assessment 20232034 predicts that the frequency of ransomware attacks will continue to increase as more personal, financial and business information becomes available online. The report also highlights the growth of disruptive technologies and a surge in online fraud.

The Centre is quick to point out however that “the vast majority of cyber attacks can be prevented by basic cyber security measures”, so it’s important to prepare rather than panic. Put an effective security framework in place now and your dealership will have a firm foundation from which to grow, confident that you can handle both current and emerging threats. ■

DRIVE YOUR TEAM TO SUCCESS - HOW TO BECOME A BETTER LEADER

By Angela West

WHETHER YOU’RE RUNNING A DEALERSHIP OR A DEPARTMENT STORE,

you need to be able to effectively lead your team to success. And that doesn’t just happen. Good managers take the time to develop their leadership skills, address their weak spots, and continually look for ways to improve.

This is easier said than done in a busy dealership, of course, when team leaders are typically more concerned with hitting their sales targets than brushing up on their communication skills. But neglecting leadership development can negatively impact your business over the long-term.

Poor leaders mean poor performance.

Employees who aren’t given the support, guidance, and encouragement they need will be a drain on your dealership.

They’re also more likely to leave. Two in five Canadians have quit a job due to a bad boss, according to research from recruitment specialists Robert Half.

Given the ongoing labour shortage, it’s more important than ever to hold onto your workforce. Providing them with a leader who inspires, motivates, and helps them realize their potential is one of the best ways to achieve that.

What does a good leader look like?

Good leadership is both an art and a science, involving a blend of skills that focus not just on the practicalities of the job but also on nurturing personal relationships.

Every boss has their own leadership style but research shows that effective leaders possess an optimal mix of the so-called ‘hard’ and ‘soft’ skills. The former include time management, organizational skills, and intelligence, while the latter are attributes like empathy, communication, creativity, and problem-solving.

For leaders in the automotive industry in particular, their skills wishlist should also include: Industry expertise You should be up to date with the latest industry trends and forecasts so you can help your team adjust to meet the market. As Canada heads into a recession, how will that change consumer behaviour? Will supply chain disruption continue into 2023? What makes and models are growing in popularity? How are Canadians paying for their vehicle purchases? No-one expects you to have a crystal ball, but it’s important to stay aware of any current and future shockwaves in the industry.

Customer service Model the behaviour you want your team to emulate, especially when it comes to customers. Every dealership is, at heart, a retail business with customers at its core. You need to excel at managing customers as much as managing your team.

Innovative thinking Every leader needs a good dose of entrepreneurial spirit, someone who’s always looking for the next opportunity in the market - whether that’s investing in EV charging stations, ramping up online marketing, or pivoting to preowned vehicles.

VOLUME 11, ISSUE 1 | 13

HOW TO BECOME A BETTER LEADER | ANGELA WEST How to develop & prioritize leadership skills Don’t leave good leadership up to chance, treat it like any other operational need in your business and make a plan. To train your current and future leaders, you’ll need a comprehensive leadership strategy that covers: Company culture Leaders set the tone so it’s helpful to establish exactly what kind of tone you want for your leadership. Think about how leaders across departments can build the kind of supportive and inclusive environment that will help your dealership thrive. Think about the values of your company and how you can embed those into all operations.

Clearly defined procedures Having a set of policies and practices in place for common issues like employee discipline, job responsibilities, project management, and customer relationships helps your employees know exactly what’s expected of them.

It also gives managers a game plan for goal-setting and ensures consistency from senior executives on down to new hires. It’s easier to lead when everyone’s working from the same playbook.

Introductory and ongoing training Owners and senior management can fall into a rut just like any other member of staff so don’t forget to make room

in your plan for ongoing leadership training. This should be provided at different levels to help junior staff rise through the ranks and make the most of opportunities for promotion.

Leadership training for automotive professionals The Canadian Dealer Academy (CDA), run by Georgian College, offers executive-level training for general managers and dealership owners. The Automotive Dealership Management Ontario College Graduate Certificate program consists of 7 courses, designed to build on participant’s previous experience and help them lead their dealerships to success in the competitive Canadian market.

Courses are delivered part-time through both online and in-person learning.

Topics covered include dealership financial management, service management, new and used sales management, and parts/accessories management.

The CDA program also includes a look at current issues, trends, and technologies so leaders and future leaders can put what they’ve learned about management theory into context, guiding the growth of their dealerships to overcome market challenges.

Georgian College also offers two Automotive Business programs - an Automotive Business Diploma and an Honours Bachelor of Business

Administration (Automotive Management).

Further south in Ontario, Fanshawe College offers a one-year college graduate certificate program in Automotive Service Management from its campus in London. This consists of a combination of courses that teach students a business-focused curriculum alongside automotive-specific courses.

It’s designed to prepare learners for managerial positions with a focus on leadership and management, HR, operations, accounting, and communications.

Preparing the next generation of leaders Canada’s employment landscape has undergone a demographic shift in recent years as Gen Z enters the workforce. These younger workers are making their mark in a variety of industries, including the automotive sector, bringing their own values, needs, and aspirations to the workplace.

They’ll need help if they want to build rewarding careers, and that’s where leaders come in.

An often overlooked aspect of a leader’s role is to motivate and inspire. Leaders produce leaders while managers produce followers, meaning that those who act as mentors are more likely to equip their employees with the skills they need to one day step into a leadership role themselves. Those who view their position as purely managerial, on the other hand, are just giving orders and while their team might do the work, they won’t be as motivated or engaged.

Research shows that Gen Z workers value leadership that is results-driven, influential, and service-minded. They want bosses that can push them to deliver, but also display empathy, good communication skills, and who lead by example.

With leadership, as in many areas of life, you get what you give. Invest in your team’s success, and they’ll invest in the success of your business. ■

14 | THE ONTARIO DEALER

ARE E-SIGNATURES AND E-CONTRACTS THE NEW SALES TOOLS?

By Ronda Payne

THE WORLD HAS MOVED FROM PAPER TO SCREEN AND PEN TO KEYBOARD.

For many purchases, transactions and agreements, it’s a no-brainer to make use of the various online and cloudbased tools to complete documents. But is the used auto-sales market ready for it? Is it time to pull off the Band-aid and go to virtual documentation?

Jim Hamilton, Interim Manager and Legal Services Director with Used Car Dealers Association of Ontario says it’s a more complex answer than yes or no.

“OMVIC does allow it,” he says of the Ontario Motor Vehicle industry Council.

“You could do a deal on the purchase of a car using email.”

There is, of course, a “but” making a lot of noise in the background at this point.

While using digital signatures and digital contract tools are permitted from a regulatory standpoint, financing that goes through a financial institution rather than a dealer’s own financing program is going to throw a wrench in the plan.

No bank or credit union has been left untouched by hackers, scammers and thieves. With cars being an individual’s second-most expensive purchase (in most cases) in their life, it’s easy to understand why financial institutions might be leery about allowing what they see as a more risk-adverse transaction.

“The banks are still in the wet signature mindset,” Hamilton explains. “Obviously, fraud is a concern. People are able to do all kinds of shenanigans with faked documents and IDs. All that’s required [to prove identity in many cases] is a driver’s licence; and a driver’s licence is really easy to fake well.”

He references the January news story of the couple working oversees who rented out their fully furnished home in Etobicoke who had their home sold without their knowledge (or benefit).

When the property management company went to check the home after red flags were popping up, there was a stranger answering the door claiming to own the house. Legally, according to the property title, the stranger DID own it.

Therefore, the possibility is there that a used auto sale conducted entirely through electronic means could also be fraudulent.

“It doesn’t come without risks,” he says.

“Some dealers do more of it than others.”

Using the right tools helps Using tools like DocuSign, Adobe Acrobat, PandaDoc and newcomer to the fray, Dropbox Sign, used car dealers have what they need to facilitate electronic transactions. Many of these tools came about due to the pandemic’s force for less in-person interactions without stopping the flow of fulfilling peoples’ needs.

As explained in a March, 2020 OMVIC bulletin, “the Motor Vehicle Dealers Act (MVDA) does not preclude an online model or sales to remote customers.” Of course, all other regulations and laws must be obeyed while pursuing online sales.

(continued on page 30)

VOLUME 11, ISSUE 1 | 15

TECH TALK

By Angela West

HERE’S THE LATEST ON WHAT’S HAPPENING IN AUTOMOTIVE GADGETS AND APPS. As all Canadian drivers know, January is often the worst month to be on the roads. Blizzards, ice, frost - this is the time of year that tests your winter driving skills.

When you’re going up against the elements, you can’t take chances.

Slow down, make sure your vehicle has an emergency kit onboard at all times, and always keep up with vehicle maintenance. It’s best to do a full safety check in fall, before the snow flies, to ensure that the tires, brakes, steering, and lights are all in good working order before winter bites.

Whether you’re dealing with an emergency, or simply looking for a way to make winter easier, there’s a range of automotive gadgets to see you through the season. From heated steering wheels to tire ‘socks’, we’ve rounded up some of the best so wherever your vehicle takes you this winter, you’ll be safe, cozy, and well-protected.

16 | THE ONTARIO DEALER

Get a grip on the road Driving on snowy, icy roads, it’s easy to lose your grip and skid out of control. Make sure you don’t end up in a ditch this winter with SnowGecko’s snow socks. Made from durable fabric, designed to maximize traction, these covers slip over your tires to give you added protection on slippery surfaces or help you drive your way out of a snowbank.

As with tire chains, the socks are usable up to 50 km but, unlike chains, there’s no wrestling with them at the side of the road as you struggle to attach them in the cold.

Instead, you can have them on in minutes - drape them over the tires, roll forward slowly to secure them in place, and you’re good to go. The socks will adjust as you drive, centering around the wheel so you don’t have to worry about them slipping off.

The socks are available in a range of sizes to fit most tires, they’re also machine washable, and reusable. In fact, they actually improve with use - improving their grip as the material ‘fuzzes’ up through frequent wear.

SnowGecko’s socks tuck away in a lightweight pouch so they won’t take up too much room in your trunk or safety kit. And you’ll be very glad you packed them when the snow starts falling.

Find out more about SnowGecko Snow socks at snowgecko.ca Say goodbye to scraping There are many unpleasant winter tasks but scraping ice off your windshield on a bitter cold morning has to be one of the worst.

For those unfortunate enough not to have indoor parking or a covered driveway,

getting ready to leave the house involves a lot of extra work. Make it easier with a Frostguard Pro windshield cover.

A heavy layer of thick, durable, fabric, the cover protects your windshield from ice, snow, and frost. Elastic straps help it fit snugly onto your windshield so there are no drips or leaks. It’s made of waterresistant PVC and fits most cars, minivans, and trucks. It also comes with an oversized strap so it can be looped around large mirrors, and a quick-drying sleeve so it can be easily packed away after use.

This winter gadget is simple but highly effective - just whip it off the windshield and you’re ready to go!

For more information on the Frostguard Pro windshield cover, visit frostguard.us Dig your way out of trouble Since you’re in a province that’s prone to heavy snowfall, it’s worth taking along a little extra shoveling help on your next drive.

The Voile Telepro Mini Avalanche Shovel can be a lifesaver in an emergency, helping you dig your way out of a snowdrift and/or clear some snow from your tires to get you moving again.

A favorite of skiers and mountaineers, the shovel is lightweight and extendable so it won’t take up space in your vehicle. You can even remove the telescopic handle from the scoop altogether to stow it away in a pack or emergency bag.

If you’re planning on doing any winter hiking and exploring Canada’s backcountry, this small but sturdy shovel is a must-have accessory. Put it in your trunk before the snow falls and be ready for anything.

Find out more about the Voile Telepro Mini Avalanche Shovel at voile.com Warm up your hands Icy steering wheels might be a minor annoyance, but once you’ve tried the

TECH TALK | ANGELA WEST

heated versions, you’ll wonder how you ever got through winter without them.

Big Ant’s 12v Heated Steering Wheel Cover is a winter driving gamechanger. It fits over your steering wheel like a standard cover, but can be plugged into your 12V cigarette lighter adapter to get it warm and toasty.

Once plugged in, the breathable cover heats up within 1 to 3 minutes, radiating gentle heat that will quickly thaw out frozen hands. At 14.5 inches, the cover is a universal fit for most models and comes in classic black.

More than just a luxury add-on, heated steering wheel covers are especially useful for drivers with arthritis who often struggle to maintain flexibility and strength in their hands during periods of cold weather.

For more information on the Big Ant Heated Steering Wheel Cover, visit bigant.store Keep snow out of your vehicle Every vehicle needs a good set of floor mats to protect its interior year-round, but this is especially important in winter when passengers and drivers track in salt, slush, ice, and snow.

Your winter mats need to be especially durable to cope with all that seasonal sludge which is why we recommend WeatherTech’s All-Weather Floor Mats.

Made from a heavy duty rubber material, they’re designed to stay flexible even as the temperatures plummet and feature a textured surface that catches water, salt, and snow. When they get too dirty, just take them out and wash them down - removing any mess is quick and easy thanks to the non-stick finish.

Most floor mats slip and slide, letting water and dirt accumulate underneath.

WeatherTech minimizes this issue with anti-skid ridges on the underside of the mat, and mats that can be custom fitted to your vehicle’s exact specifications so they’re snugly sealed around doors and seats.

Find out more about WeatherTech’s AllWeather Floor Mats at weathertech.ca Get your wipers ready for winter From wrapping windshield wipers in covers to keeping them up when not using the vehicle, Canadians have many winter wiper hacks to keep their blades from freezing. But for complete peace of mind, it’s better to invest in a durable set of blades that can withstand anything winter throws at them.

any frost stays outside the car. It’s an environmentally-friendly alternative to getting your car going via remote start and letting the engine idle while it warms up.

The car warmer unit can be mounted so you can fix it in place all winter long and never have to climb into a cold cab or sit shivering while your windows defrost. And if you’re the organized type, you can even hook the heater up to a timer so there’s no waiting around for warmth.

Just as you change your tires for winter, you should also consider changing your wipers. TRICO Ice Wipers are equipped for extreme weather, with a protective casing that stops ice from damaging the blades.

To find out more about the Temro Little Buddy Car Warmer, visit phillipsandtemro.com

They’re easily installed, snapping into place with one click, and encased in heavy-gauge rubber so they won’t crack in sub-zero temperatures. The wedge-shape, flexible design shovels snow off your windshield without missing a spot or leaving messy streaks.

Some people will tell you that a bag of kitty litter is all you need to free your tires when they’re spinning out in snow. This inelegant solution might work, but it’s nowhere near as reliable as a sturdy set of traction boards.

If you get caught in a winter white-out, having wipers that are tailor made for extreme weather can make all the difference, giving you much-needed visibility in treacherous conditions.

For more information on Trico Ice Wipers, visit tricoproducts.com Heat things up On frigid days, the Temro Little Buddy Car Warmer will be your favourite passenger.

A portable 120V heater, this small but mighty gadget has 900 watts of heating power to quickly warm up the interior of cold vehicles and ensure that

Give stuck wheels a helping hand

Even urban dwellers should keep traction pads in their car in winter as snow storms can come on suddenly and it’s better to be prepared than stranded.

Lightweight and flexible, the Jeremywell All-Weather Foldable Traction Boards are a great buy for your winter driving safety kit. They neatly fold away so you can toss them in the trunk and forget about them all winter long. They’re also incredibly durable, come in a pair, and are relatively inexpensive compared to other models on the market.

For more information about the Jeremywell All-Weather Foldable Traction Boards, visit jeremywellindustry.com ■

VOLUME 11, ISSUE 1 | 17

THE OLD CAR

FATHER AND SON DESOTOS BOTH WITH ORIGINAL PAINT!

By Bill Sherk

18 | THE ONTARIO DEALER

AN EMAIL ARRIVED FROM DON STILES OF BRANTFORD, ONTARIO: “We have two DeSotos in our family. A 1959 sedan

is owned by my son Kevin. My car, a 1956 Firedome sedan, was apparently delivered to Louisiana and sold to a banker, who owned it for over three decades. In 1990, a second owner used the car as his daily driver until 1999. Sold again, it was put in storage until 2017, then went through two more

R DETECTIVE owners until I purchased it in the fall of 2020 and had it imported to Ontario.

“The body and paint are original, as the cracks in the 67 year paint testify. A real 30 footer! The seats were recovered sometime in non-original DeSoto material. Odometer indicates 53,000 miles. The motor (330 Hemi with 230 hp) runs smooth and does not smoke, which may indicate original mileage. Still a work in progress.”

Behind the wheel of Don’s ’56 DeSoto

Don’s DeSoto is a classic example of the “Forward Look” designed by Chrysler stylist Virgil Exner beginning with the 1955 models. The raised rear fenders on Don’s ’56 are a hint of bigger tailfins to come in 1957. On Don’s dash you can see the push buttons for the automatic transmission, the first year for this feature.

Kevin Stiles owns the 1959 DeSoto. “My father (Don Stiles) found this rare beauty in south central Ontario on Kijiji. A Canadian car (sold new in Timmins, Ontario), the earliest known history is of her purchase in 1985, followed by subsequent buyers in 1991, 2000, and 2007. I bought her in the spring of 2018, since which time she has been happily cruising and humming along the roads of the Greater Toronto Area with her 383 V8.

“I reupholstered her seats using the original pattern, my dad tended to her few and minor mechanical and rust issues, and her paint is an original gorgeous dark blue tint with tiny specks of light green throughout. She’s a survivor indeed and a real gem.”

The 1959 DeSoto came in four series with names designed to light up your life: the entry-level Firesweep, the mediumpriced Firedome, and the higher-priced Fireflyte. If you had lots of money to spend, you could buy the top-of-the-line DeSoto Adventurer which compared closely to the 1959 Chrysler 300E. The 1961 DeSoto came out in the fall of 1960 but production ended by Christmas because DeSotos were priced too close to the more popular Chryslers.

Behind the wheel of Kevin’s 1959 DeSoto

Watch for details of the proposed DeSoto Convention in Chatham, Ontario, in 2023 celebrating this famous make since the first day it arrived in 1928. In this hobby, the fun never ends! ■

VOLUME 11, ISSUE 1 | 19

Semiconductor demand easing, but shortage not over yet

TRENDS

By Chris Chase

CANADIAN CAR DEALERS AND SHOPPERS may have flipped their

calendars over to a new year, but that doesn’t mean they’ve been able to forget the concerns of the previous 12 months.

Wholesale values are continuing the steady decline we told you about in last fall’s marketplace update. That’s helping make used vehicles more affordable, but now there are other economic forces at play that continue to affect Canadians’ spending power.

Canadian wholesale values falling steadily after Spring 2022 peak In December 2022, Canadian Black Book’s Used Vehicle Value Retention Index, which takes the temperature of Canada’s used-vehicle wholesale marketplace, hit its lowest mark since the end of 2021, falling to 157.5 points after declining steadily from its record high of 165 points in March 2022.

According to David Robins, Principal Automotive Analyst and Head of Canadian Vehicle Valuations for Canadian Black Book (CBB), rising interest rates and slow improvements in new-vehicle supply have cooled the wholesale market, but those effects have been tempered by an ongoing lack of used-vehicle supply. Since late September 2022, CBB’s average usedvehicle listing price has fallen from $37,350 to about $36,500.

That trend is expected to continue through 2023, according to Daniel Ross, CBB’s Senior Manager of Industry Insights and Residual Value Strategy.

20 | THE ONTARIO DEALER

He says used vehicles are currently depreciating at a rate of about two per cent per month.

“It’s usually about 10 to 12 per cent that we see vehicles degrade in value over a typical year,” Ross said in a January 17, 2023, interview with Global News.

“We are expecting (something) around that, now that we are getting back to depreciating values instead of values appreciating in the used market.”

As a result, Ross, Robins, and other industry analysts think many car shoppers will put off vehicle purchases to take advantage of those falling values, which could further chill the wholesale market.

U.S. buyers still pressuring the Canadian used-vehicle market Average wholesale prices for used vehicles have also continued to fall in the U.S. marketplace. December 2022 marked the sixth straight monthly decrease for wholesale values, but those prices remained about 30 per cent higher than they were in late 2019.

As of mid-January 2023, the Canadian dollar was trading at about USD$0.75—a shade higher than it was at last fall’s market update, but not enough of a boost to significantly curtail the number of U.S. buyers travelling to Canadian car auctions. CBB says steady demand for late-model used vehicles in good condition means American dealers are continuing to buy vehicles in Canada for resale at home, and that demand is bolstering wholesale values in Canada.

On December 6, 2022, Taiwan Semiconductor Manufacturing Co. (TSMC)—one of the world’s largest chipmakers—announced it had begun building the second of two new microchip factories in Arizona. The first, which has been under construction since 2021, will begin cranking out chips in 2024, with the newly announced plant set to come online in 2026. TSMC’s investment is valued at $40 billion, which the company says is “the largest foreign direct investment in Arizona history and one of the largest . . . in the history of the United States.”

TSMC will produce 600,000 semiconductor chips annually in Arizona. According to a White House representative who spoke to CNBC, that “could meet the entire U.S. demand for chips when they’re completed. . . . We won’t have to rely on anyone else to make the chips we need.”

In a December 20, 2022, Financial Times report, semiconductor manufacturing representatives expressed confidence they will be able to steadily increase chip production capacity this year to meet consumer demand. But that increased capacity won’t erase the chip shortage overnight, thanks to ever-increasing demand for electric vehicles, which are especially reliant on semiconductors.

FT spoke to the CEO of U.S.-based chip maker Onsemi, who said the company has already sold out of the silicon carbide chips it makes for EVs “at least to the end of 2023.”

However, others are more optimistic.

Peter Voser, chairman of engineering company ABB Ltd., told CNBC in early 2023 he’s optimistic the worst of the semiconductor shortage is over. He said the CHIPS and Science Act—passed by the United States to boost chip production capacity in that country— could actually create an oversupply of semiconductors. ■

DID YOU KNOW THAT ALL-IN-PRICE ADVERTISING IS THE LAW IN ONTARIO? ALL-IN-PRICE ADVERTISING means that

when OMVIC-registered dealers advertise a vehicle for sale, the price must include all fees and charges they intend to collect from consumers. The only fees that can be included outside of the advertised price are HST and the total licensing cost. This practice is called all-in-price advertising, and it’s been the law in Ontario since 2010.

All-in-price advertising protects consumers from having to pay more than what they can afford and helps dealers in maintaining a level playing field in the retail advertising space. OMVIC monitors dealership advertising to ensure ongoing compliance with legislation, and dealers who break the law are subject to further administrative review by OMVIC. Visit omvic.ca for more examples of fees or charges that must be included in an advertised price.

Educate your customers on market adjustment fees In today’s automotive climate, as a dealer, you may be charging amounts over the manufacturer's suggested retail price (MSRP) often referred to as “market

adjustment fees”. While this term is not necessarily universal, we are aware that some dealers are adding a charge onto their bills of sale, with this or a similar description to identify charges over the MSRP. Some of these charges are built into some dealerships’ advertised price, while other dealers don’t advertise a price but itemize the charge on the bill of sale. To avoid future conflict, be sure to thoroughly explain the additional potential charges to each customer in order to avoid any confusion before a deal is signed.

Ultimately, there is nothing wrong with signaling to consumers that prices have increased because of market conditions.

Market adjustment fees are unacceptable if they result in a violation of the MVDA, CPA, or the regulations prescribed under these statutes.

It’s also important to note to customers that OMVIC does not regulate manufacturers (unless they are registered as a dealership in Ontario – like Tesla).

As such, advertisements posted by manufacturers do not have to comply with the MVDA and all-in pricing.

Questions?

Stay up to date on the latest guidelines for dealership sales operations at omvic. ca. Contact our dealer support team at dealers@omvic.on.ca or call 1-800-9436002 Ext. 4 if you have any questions about MVDA laws and more.

OMVIC’s resources, tips, measures, checklists, and recommendations will help you remain compliant with the MVDA in an ever-evolving vehicle sales landscape.

OMVIC also offers free education services and webinars for dealers upon request, email education@omvic.on.ca.

Follow OMVIC on social media to stay up to date on the latest news.

Instagram: @omvic_official Twitter: @omvic_official Facebook: Ontario Motor Vehicle Industry Council (OMVIC) LinkedIn: Ontario Motor Vehicle Industry Council (OMVIC)

VOLUME 11, ISSUE 1 | 21

SPONSORED

WARRANTIES TO BENEFIT CUSTOMERS AND DEALERS IMPROVE CUSTOMER RELATIONSHIPS AND THE BOTTOM LINE WITH PRODUCTS FROM PEOPLES CHOICE WARRANTY SELLING CARS HAS CHANGED A LOT

making way for more positive, complete exchanges on both sides.

Dealers are adding more products and services to their offerings to ensure customers have the best long-term outcome with their vehicle and the relationship. Often customers aren’t aware they can add a warranty to their used car purchase and this has become one of the biggest value-added aspects of the deal.

over the years and most customers understand that when a sales person is offering additional products or services with the purchase of a vehicle, it’s not only to enhance the ownership experience of that vehicle but also to create a stronger relationship with the dealership.

Everyone wins. The customer gains valuable protection on their car or truck and the dealership has an opportunity to increase their bottom line.

Providers like Peoples Choice Warranty (PCW) offer numerous options to fit every buying experience.

It’s the ultimate version of a win-win.

The old days where customer fears of sales people focused on “sell ‘em and forget ‘em” are fortunately fading,

“We’ve been in business since 1999,” says Noémi Bellehumeur-Moya, marketing coordinator. “We have a wide range of warranties starting from our basic

22 | THE ONTARIO DEALER

Bronze powertrain warranty, all the way to our Titanium no time limit exclusionary coverage.”

Newer cars being sold off the lot may still have some of their transferable warranty, but it is likely to run out before the customer is ready to move on to their next vehicle or it may not cover everything the customer wants. Cars are a huge investment for most consumers (especially in today’s uncertain economic times), whether new or used and purchasing what fits the pocketbook is essential. An extended warranty from PCW keeps stress low in case the unexpected happens and something on the car fails.

SPONSORED CONTENT No big surprise repair bills that don’t fit into that carefully-established budget. No fears that a repairman might find something else wrong. With an extended warranty a little extra on the vehicle payment ensures mechanical repairs are already covered.

Best of all, as the salesperson and dealership that sold the warranty to the customer, you’ve just become indispensable.

“This is where PCW comes in,” Noémi explains. “When the customer is no longer covered by a manufacturer’s warranty, depending on the program, they will be covered for a certain length of time and/or a number of kilometers.

This is called a mechanical warranty.”

PCW has been growing since the company was purchased by Prescience Management in 2020, having seen an exponential increase in sale growth over the last three years. Part of the reason for this growth is the dedication of onthe-road sales reps aligned with various dealerships. Recently Prescience amalgamated and became PMI Alliance Group Inc. Reps are the face and voice of PCW for dealers, so when there is a question, there’s no question of who to call! They make sure the dealership has the access to information and support they need.

Plus, because of the national training team, dealerships gain the skills needed to sell the right product to customers depending upon their budget, needs and vehicle. As PCW is constantly growing and adding new products to their line-up, this in-dealership training comes to the dealers and salespeople to get everyone up to speed within their own environment.

“Peoples Choice is known for their long-standing reputation,” says Noémi.

“We have a customer-friendly service department you can reach out to at any time. We also have a national training team. They provide exclusive training to business managers and the service department. They will teach the teams all about our products and, this is a big one, it’s all completely free for the dealership.”

Simplicity is key in a busy dealership and PCW wants to make sure they don’t add to the to-do list, so there’s no new software to load on computers.

Everything happens through the company’s website with access to the user-friendly dealer portal.

“We really rely on the portal to help,” she says. “Dealers can track their sales in there, get reminders, see reports and more. Our sales reps are just a phone call away if there’s a question about the portal or anything really. We are a people-first business and we make sure our dealers are confident they have everything they need to take care of their customers.“ Having a trusted warranty provider like PCW gives peace of mind to both the customer and the dealer. Customers can look up PCW’s website (www. pcwwarranty.com) before the dealer even talks to them if they are inclined, establishing confidence in the dealer’s choice in service partners.

“There is profitability available through the sale of warranties, but perhaps more importantly, dealers are giving a greater sense of comfort and security to their customers by eliminating the fears of ‘what if’ and ‘how much’, should something go wrong,” Noémi says.

Some warranty companies only offer a limited product-line but PCW believes in having products to suit all kinds of buyers. They also facilitate the distribution of GAP (guaranteed asset protection) insurance and recently launched a comprehensive Hybrid/ EV warranty with full-range battery coverage – the first of its kind in Canada.

And although cars and trucks through dealerships are the mainstay of PCW’s business, the company also has RV and Powersports coverage on the books.

“It’s good to be a full-service provider,” she says. “We can cover anything a dealership needs and that makes for a better business relationship for everyone. Plus, we’re pretty great to work with.”

The PCW model is straight-forward and efficient for dealerships and their customers. For those who want a more hands-on approach, they can contact their rep as needed. Others may prefer to spend the majority of their time interacting with the portal on their own.

Additionally, the 24/7 claims department is easy and fast to work with for both dealerships and customers creating a seamless process from all vantage points. ■

It's active training where sales people experience how to sell products while they learn about the products themselves. This style of training enhances that mutual trust with the customer and is the foundation of a long-term relationship.

VOLUME 11, ISSUE 1 | 23

THE COMMON LAWYER Trends from the Trenches and lingering supply issues. In addition, OMVIC is taking a more active role and scrutinizing the activities of dealers of all sizes. Many of our larger dealerships and dealer groups are facing increased scrutiny by, and interaction with OMVIC that is unparalleled to anything I have seen in over 15 years working in the automotive space.

By Justin Jakubiak and Adam Varro AS WE DRIVE INTO 2023, it is a good time

to stop and review the state of the automotive industry, especially from a regulatory and general compliance perspective. For me and my team, that means reviewing last year's cases: the wins, the losses, the compromises and the reasons behind each result. We hope that by reflecting on the year we can continue to better understand the regulatory regime that dealers and salespeople operate in, with a view of spotting trends and anticipating the areas where dealers should focus their risk mitigation strategies.

Generally Ontario dealers are facing increased pressures caused by a tightening economy due to increasing interest rates

24 | THE ONTARIO DEALER

OMVIC is generally increasing its oversight and becoming firmer in the way it governs both dealers and salespeople. While OMVIC should be lauded overall for its efforts to ensure Ontario's dealers and salespeople are abiding by their obligations under the MVDA, it sometimes appears that OMVIC has become too firm and relentlessly pursues matters against some dealers and salespeople where the facts don't warrant such actions – or any action at all.

The Spark which Ignited Change Last spring, I wrote an article for the Ontario Dealer which reviewed the OMVIC Value for Money Audit, prepared by the Auditor General for Ontario and released in December 2021. As a brief recap, it is a 68 page report that contains a detailed analysis of OMVIC, its mandate, its funding and overall operations.

The report was critical of OMVIC and noted a number of areas which required improvement. One of my main concerns arising from the report was the potential impact that it would have on how OMVIC

carries out its mandate. I was nervous that OMVIC would translate it to mean that it needed to significantly change the way discipline matters, proposals to refuse and revoke registrations, as well as prosecutions under the Provincial Offences Act are pursued.

Now, a year later, has anything changed and were the suspicions justified? Yes and no.

On the positive side, OMVIC has become more efficient in some respects, particularly with registration matters, which serves everyone better. In other ways, and as I feared, OMVIC has become less efficient and/or more aggressive; this is most evident in the manner in which OMVIC handles and looks to resolve matters before the OMVIC discipline panel or the Licence Appeal Tribunal.

In the last year, OMVIC has often maintained unreasonable (in our opinion) positions in various proceedings.

We believe these positions are a direct consequence of the Auditor General's report, and less about OMVIC's mandate and its desire to protect the car buying public. The consequence of the change in OMVIC's approach towards registrants is that discipline and tribunal proceedings often cannot be resolved without a hearing, or take much longer, resulting in increased costs to registrants and time away from the business of selling cars.

Registration As noted above, we have seen improvements in how OMVIC's registration department is processing routine applications. Compared to a year ago, applications, especially individual applications for registration as a salesperson, are generally being processed more quickly. Registration officers continue to be responsive and reasonable and do their best to keep our office informed of developments as the applications proceed through to completion.

It is the more 'difficult' applications which continue to move slowly and often stall without reasonable explanation. These files often relate to an applicant who may had previous issues with OMVIC (such as previously selling while unregistered), or who may have had issues in another regulated industry.

The bottleneck in these files appears to be when the applications are forwarded to OMVIC's management level for review. Sometimes management will quickly process the application to the next stage, but too often applications will be stuck at the management review stage for unreasonable amounts of time – sometimes for months on end – with little to no explanation or transparency into the reasons for the delay.

Business Plan OMVIC has made submission of a detailed business plan a requirement for all new dealership applications. A form in this regard has been created which applicants must complete before the business application will begin to be processed – essentially, the form serves a gate keeping function and ensures applicants have really thought through their plans to open a new dealership.

Applicants must thoroughly describe their business model and provide detailed financial information. This is in direct response to the Auditor General's report, which recommended that OMVIC

"review the application process and develop guidelines to fully assess the new dealer applicants' financial strength to ensure they have sufficient funds to operate their business".

Our big concern with the new business plan requirements is that the current form is rigid and doesn't easily apply to all applicants. It also requires a high degree of speculation to complete – especially when not all of the details of the proposed dealership are known at the time of application, such as the location of the applicant dealer (given most dealers find a location as a last step before registration), and the local target market.

Letters of Credit OMVIC is increasingly requesting that new dealers provide a letter of credit as a condition of registration, typically from applicants who, in their view, have financial red flags. This too is directly in response to the Auditor General's report, which found that OMVIC's failure to obtain letters of credit from dealers contributed to unrecovered losses to the Compensation Fund.

Letters of credit (LOC) are a significant barrier to new registrants, especially those who have a limited amount of startup capital and will be running modest operations.

These individuals often do not have sophisticated banking relationships, or the financial ability to secure a LOC from a bank. To complicate matters, OMVIC has recently advised our office that $20,000 is the minimum LOC amount that will be accepted for the smallest new dealers.

While we appreciate the need for LOC's for some new dealers, we believe there needs to be more flexibility in the LOC requirements – both in terms of the minimum amount, and also in form. An alternative to a traditional bank LOC is required for new unsophisticated dealers without established banking relationships.

Licence Appeal Tribunal Proceedings We have seen and participated in some interesting LAT proceedings over the past year.

If you receive a Proposal to Refuse or Revoke, do not assume that the decision will be based only on the allegations set out in the Proposal, or any further and other particulars that you may receive. We have observed an increased willingness by LAT to consider issues and matters that fall outside the four corners of a Notice of Proposal.

LAT hearings are hearings de novo ("anew"), and the case law has interpreted this to mean that the LAT can rely on any conduct or subsequent fact brought to light in the course of a proceeding to ground its decision; LAT is therefore not restricted to only considering issues that have been raised by OMVIC in support of a Notice of Proposal. Registrants can often be caught flat footed by having to respond to issues that they did not anticipate in the midst of a hearing. It is therefore very important for applicants to consider the evidence and documents upon which they want to rely at a hearing, and the possible consequences of putting same into evidence.

On a positive note, LAT has been releasing its decisions much more quickly.

Previously, LAT decisions often took upwards of four months to be released.

The last two decisions we received have been released within one month of the hearing's completion. Whether these are anomalies, or the new standard (continued on page 28)

VOLUME 11, ISSUE 1 | 25

(continued from page 25) remains to be seen.

Recently, we were successful in obtaining a cost award from a LAT adjudicator against OMVIC pursuant to the costs provisions provided for under the LAT Common Rules of Practice and Procedure.

Costs awards before LAT are rare in general, and it is extremely rare for a cost award to be made against an industry regulator. The adjudicator, in a detailed cost decision, found that OMVIC acted unreasonably before and during the course of a 14 day hearing.

She found that the evidence against our clients was lacking and that overall OMVIC was unreasonable in its handling of the matter.

Unfortunately, OMVIC was successful in having the cost award overturned. A different adjudicator was tasked with reviewing the cost award and determined that the basis upon which costs were awarded did not strictly fit within the confines of the costs rule. It was a technical ruling that focused more on when and how costs should be awarded, and did not, for the most part, deal with the substance of the previous adjudicator's findings regarding OMVIC's unreasonable behaviour.

While we were disappointed with the reconsideration decision, it is a good sign that LAT is at least open to the idea of awarding costs against a regulator and does truly consider the conduct of all the parties that appear before it.

Proceedings Before the Discipline Committee OMVIC's Discipline Committee has become a more difficult place for registrants.

Most discipline matters resolve themselves in advance of a hearing. Historically the parties, once a settlement had been achieved, would advise the Committee of the settlement and it would be accepted and approved without much process or fuss.

28 | THE ONTARIO DEALER

Unfortunately, this is no longer the case. The Committee has developed a practice of rejecting resolutions that have been negotiated by OMVIC and registrants and submitted to the Committee in writing for approval – even in cases where both OMVIC and registrants are represented by counsel.

In response to this, a new practice has developed whereby OMVIC and registrants have to request a formal hearing before the Committee to present the settlement proposal.

While these hearings are proving successful at concluding the settlements, they are much more time consuming and expensive for OMVIC and registrants alike. I was recently involved in one where it took approximately 4 hours of hearing time before the Committee finally accepted the resolution that was being proposed on a joint basis – which is longer than some disputed hearings before the Committee.

Multiple Proceedings at Once A troubling development we have observed is the frequency with which OMVIC uses multiple tools at once to enforce the Motor Vehicle Dealers Act. OMVIC will carry on POA proceedings and/or Discipline Proceedings at the same time as LAT proceedings, or in close succession to one another. I called this "over punishing" in my May 2022 article and I maintain the position that OMVIC should pick a lane when deciding how to address conduct that is concerning to it.

It is procedurally unfair to have to defend two proceedings that while in different forums and with different standards of proof, relate to the same subject matter(s). Concurrent proceedings lead to the difficulty of needing to protect oneself in one proceeding for the sake of a defence in another proceeding and can prevent a registrant from being able to entertain early resolution of one or both of the matters.

We recently acted for a salesperson who was forced to concurrently defend both a Notice of Proposal to Revoke his licence and POA charges relating to the exact same conduct. Although our client was ultimately successful before LAT and the POA charges were subsequently withdrawn, he was forced to incur legal fees to defend two related matters, as well as endure the stress and aggravation of looming charges on top of a revocation hearing.

Tying up judicial and administrative resources by pursuing registrants in multiple forums does not better advance OMVIC's mandate to protect consumers.

It is an abusive process that is unfair to registrants.

Application Responses Can Haunt You In terms of OMVIC forms, we have noticed that they have slowly evolved for the better over the years. The language has become clearer and there is an effort to make sure the person completing the application understands what is being asked of them.

While the forms are evolving for the better, they are still not perfect and we take this opportunity to remind registrants of the importance of completing OMVIC applications and forms accurately. Too often we work with dealers who suffer the consequences of filling out a routine form too quickly, or answering a question without critically thinking about what is being asked.

Please always read the entire application/form/document and read it slowly and carefully. If there are questions, call OMVIC or your legal advisor.

It is critically important that registrants ensure they understand what they are agreeing to when they affix their signature to an OMVIC form – so if you never read the 'fine print', I strongly urge you to make OMVIC forms the exception and read them front to back.

I cannot count the number of times that a dealer or salesperson has suf-

fered negative consequences because they incorrectly completed an application years before (with such mistake often being compounded because it is repeated on subsequent applications). OMVIC will often take these repeated mistakes as repeated instances of the supplying OMVIC with "false" information and will equate same as evidence of dishonesty or a breach of one's obligation to carry on business with honesty, integrity and in accordance with the law.

Tips to Avoid Being the Subject of Proceedings This new era of OMVIC's enforcement is a good opportunity for dealers and salespeople to take all steps necessary to ensure they comply with their obligations.

Here are some tips to get you there: • If your dealership or its salespeople are registered on terms and conditions, make a point of reviewing them every few months to remind yourself of the contents. Breaches of terms and conditions are taken very seriously by OMVIC.

Whether it’s your business to sell New cars or Used cars... it’s our business to keep all your insurance needs covered

• Regularly review and update training and policy materials and ensure that all staff are aware of their duties and obligations in their specific role. Managing a dealership with many moving parts and staff can mean that standards may not be known, and as a result, not met. If you are a dealer principal, you are ultimately responsible for the conduct of your employees.

Training is therefore key!

• Take your time when completing renewal applications. A single oversight or mistake could lead to an investigation and possibly a Notice of Proposal. A failure to disclose any potentially damaging information goes straight to honesty and integrity in OMVIC's view.

• Cooperate fully with any dealer audits and inspections, and provide requested information without delay.

• If you are concerned that OMVIC may commence proceedings against you for any reason, contact the UCDA or a lawyer who understands the MVDA/OMVIC. Sometimes a brief consultation can put a matter to rest or direct you to a course of action you would not have otherwise considered.

We hope this article gives you some insight into what we are seeing from our perspective as lawyers that work with dealers and salespeople daily.

Justin is a Partner with Fogler, Rubinoff LLP and is recognized by the Law Society of Ontario as a Specialist in Civil Litigation. This article was written with Adam Varro, an associate with Fogler, Rubinoff LLP and a member of the firm's automotive and transportation law group.

This article is intended for general information purposes only, and should not be relied upon as legal advice. Views and opinions are Justin and Adam's alone. ■

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

VOLUME 11, ISSUE 1 | 29

E-SIGNATURES | RONDA PAYNE (continued from page 15) As outlined in the bulletin, there are no differences between a traditional “bricks and mortar” dealership and an online dealership, so both must follow the same standards. In essence this levels the playing field, allowing those with a physical location to provide remote test drives, electronic signatures on contracts and sale to remote customers.

Delivering to a customer’s home Delivery to a customer’s home is permitted so long as the contract has been completed prior to delivery and

and signatures grow, so too does the was done so via technical skill of fraudsters. electronic means.

Dealers are not able to take the contract “It’s not going to get better,” says Hamilton. to the customers as this still is seen The change therefore, is likely to be an as trading offacceptance of the risk. Some dealers are premises. ready to take that on, but their lenders aren’t.

When seen through this Dealers who want to embrace the filter, online sales electronic option need to ensure they may be a way to follow OMVIC’s guidelines for doing so provide additional and offers an electronic record-keeping convenience to a guideline document. Taking on fullycustomer, but it electronic sales isn’t a no-brainer in may also change the old adage “buyer used care sales. It’s going to take time beware” to “seller beware.” Hamilton for everyone to know the tools that work, says that the electronic documents act accept certain risks and ensure their makes E-signature as binding as a wet signature “for all kinds of contracts” but processes are up to snuff. don’t expect your traditional lender to be Those who are ready to take the plunge jumping on board to make that happen now will be “playing with their own any time soon. money” but also banking on providing a consumer-savvy service. ■ “Banks are quite shy about having that happen,” he says. “They say, ‘so, you’re not going to meet them face to face?

To advertise in the Not if you’re going to want to use our money’.”

Ontario Dealer call: It’s understandable that dealers want to get ahead of the curve and provide more convenience as soon as possible, but while the desire for electronic contracts

Let us help your dealership with:

30 | THE ONTARIO DEALER

Shannon Coleman slk.coleman@yahoo.ca 647.269.4191

PR TECTING YOUR CAR BUYERS SINCE 1999

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32 | THE ONTARIO DEALER