Protecting Consumers

Advance Disposal Fee: Consumers are responsible for paying a fee of $5 per new tire when purchasing a new vehicle. If new tires are placed on a used vehicle as part of the sale agreement, the purchaser is also required to pay the Advance Disposal Fee of $5.00 per tire plus GST and PST. Also known as the Tire Levy. Click here for more info. 

Advertisement: Means any type of solicitation that is oral, written, visual, descriptive or any other representation or conduct by a dealer/salesperson, either directly or indirectly, which urges consumers to buy their vehicles, products, or services. This includes, but is not limited to a solicitation that is:

• on a vehicle
• at the dealership
• at promotional or marketing events or an off-site sale
• on radio, television, the internet or distributed by other electronic means
• a telephone solicitation or telemarketing
• sent via mail or e-mail
• published in a newspaper or a magazine
• printed on a flyer, brochure, sign, poster, showroom display or other printed material.

Aftermarket Warranty: Or aftermarket extended warranty, is a warranty provided by a third party on a used vehicle that requires the purchaser to pay an additional cost.

Air Conditioning Tax or Recovery Fee: On new vehicles, some dealers may charge an Air Conditioning Recovery Fee. The actual tax is paid by the manufacturer to the federal government at the time the vehicle is sent to the dealer. The manufacturer sometimes passes this cost on to the dealer separate from the MSRP of the vehicle and the dealer then passes the cost along to the consumer. This is part of the price the dealer is asking for the vehicle and not a consumer tax.  This should be made clear to a buyer and should not be represented as a consumer tax.

Altered: Altered status is given to a vehicle that has been significantly modified after its manufacture. It is also used for homemade and other constructed vehicles to indicate that they have been inspected and are structurally sound. The status is added after the vehicle passes inspection.

APR: Annual Percentage Rate. An interest calculation that represents an effective rate of interest accruing over a one-year period. The formula for calculating APR is found in the Disclosure of the Cost of Consumer Credit Regulation, under the Business Practices and Consumer Protection Act. Chapter 2, Part 5, Division 1.

APV9T: APV9T Transfer/Tax Form is an ICBC form used to transfer a motor vehicle from one person to another. It includes a description of the vehicle, declarations, the purchase price, the names and addresses of the buyer and seller, both signatures, the date of purchase and information, such as the odometer reading, plus instructions for completing the form. Under law, this form must be completed within 10 days of a change in ownership. 

ARA: The Automotive Retailers Association is a not-for-profit organization formed in 1951 to promote the advancement of the automotive industry through education, representation and member services in order to maintain a high standard of professionalism among service providers, while protecting the safety and satisfaction of the motoring public in British Columbia.

As-is Where-is: In most situations, this is not a valid statement and should not be part of a standard sales contract. It is not effective by itself in waiving or limiting the implied rights of a buyer for a vehicle that is sold for use as transportation.

Balloon Payment: CA balloon payment is a large, lump-sum payment that is scheduled or due at the end of a series of considerably smaller periodic payments. It may be included in the payment schedule for a loan or lease.

BCAA:  British Columbia Automobile Association.  A non-profit organization providing towing, insurance, and inspection services.

Bill of Sale: The Bill of Sale is a legal document used to transfer the title to personal property from the seller (dealer) to the buyer (consumer). It is prepared by a seller and reports that on a specific date, at a specific locality, and for a particular sum of money and/or trade, the seller sold to the buyer a specific vehicle of which he had lawful possession. It is also commonly referred to as a contract or a sale agreement.

Black Book:  Canadian Black Book is a source for new and used vehicle pricing and information.

Burden of Proof: Under the Business Practices and Consumer Protection Act, if a seller is accused of a deceptive act or practice, the seller must prove that they did not use a spoken, written or visual statement or action to fool or mislead a consumer. This is known as reverse onus and is permitted in civil actions.

Buyer Beware:  This is not a valid statement under the Sales of Goods Act. The Supreme Court said that caveat emptor (let the buyer beware) regarding consumer transactions has diminished greatly since the 1950s. The Supreme Court of Canada recently confirmed that modern consumer protection legislation has shifted the consumer-merchant relationship to caveat venditor (let the seller beware).

Canadian Motor Vehicle Arbitration Plan (CAMVAP): 
CAMVAP helps consumers resolve disputes with most manufacturers on vehicle defects or warranties through mediation. This applies to vehicles that are no more than four years old.  If a CAMVAP arbitrator rules in favor of the consumer, compensation may be in the form of repairs, mone, replacement of the vehicle, or buy-back by the manufacturer. No fee is charged for the program.

Canadian Import: 
Refers to a vehicle previously registered in another province.

CARFAX: 
CARFAX provides a variety of vehicle history reports by VIN for a fee.

Consignment Sales: 
An arrangement made by a consumer and a dealer, where a consumer entrusts a vehicle to be sold by a dealer on their behalf. The dealer acts as an agent for the consumer. In B.C., a dealer needs special approval to conduct consignment sales.

Consumer Transaction: 
According to the Motor Dealer Act and the Business Practices and Consumer Protection Act, a consumer transaction is one that occurs between an individual and a motor dealer. The vehicle purchased must be primarily for personal, family or household use. And, the vehicle must be purchased during the course of their business.

Cooling-off Period: 

A cooling-off period applies only to the leasing of vehicles. If you enter into a lease agreement, you may cancel the lease without penalty or fees within the one clear day period that a motor dealer is required by law to physically keep the vehicle in their possession. You may waive this requirement in writing if you want to leave with the vehicle. Dealers are required to notify you in writing of the cooling-off period, and your right to waive it, before you enter into the lease. The written waiver may be a term in a lease agreement and you should inspect the lease documents carefully. There is no cooling-off period for the purchase or financing of a vehicle in British Columbia. However, a dealer may have a return or exchange policy. If they do, you should get a copy of their policy in writing.

Curber: 

A curber is an individual or company advertising, displaying, promoting or selling vehicles as a business without a licence.  Curber ads in newspapers and online will list no dealer licence number.  Often posing as private sellers, they sell from parking lots. Many do not disclose the history of the vehicle, hiding prior accident damage and out of province registration.

Damage or damages:
Dealers are required to declare to a buyer any damages to a vehicle needing $2,000 or more to repair.  This is not limited to damages from accidents. In addition, this amount is the cumulative total of all incidents, not just a single incident that exceeds $2,000.

Dealer Advertisement:  

Any advertisement by a vehicle dealer or group of dealers.

Dealer Cost:
The cost of a specific vehicle to the dealer minus any discounts, volume rebates or other reductions from the manufacturer or supplier in the cost of placing that vehicle in the dealer inventory. Dealer cost must not include any allocation for the dealer's overhead, operating expense or profit. 

Dealer Fees: 
Any documentation, administration and other negotiable processing fees dealers may add to the price of a vehicle.  If they are non-negotiable they should be included in the advertised “total price” of the vehicle.  They must be disclosed to a buyer prior to the negotiation of a final price and not a surprise.

Dealer Inventory: 
A stock of new or used vehicles that a dealer has on hand and which the dealer has authority to sell.

Dealer Warranty: 
A warranty on a used vehicle provided by a dealer that is usually limited to a specific period of time and distance travelled, and may include coverage limits such as a power train warranty or a savings on labour.

Dealership Mechanical Inspection: 
An inspection completed by the dealership staff and provided to the buyer. Dealership inspections can be very limited or very comprehensive. Always request a copy if one is not provided.

Declarations: 
At time of sale a dealership must declare:
•Is the vehicle suitable for transportation in compliance with the Motor Vehicle Act?
•Has the vehicle ever been used as the following: taxi, police vehicle, emergency vehicle, organized racing, lease vehicle or rental vehicle?
•Has the vehicle ever been registered outside British Columbia?
•Has the vehicle sustained damages requiring repairs totaling more than $2000?
•Where the vehicle is new, has the vehicle sustained damages requiring repairs more than 20% of the asking price of the vehicle?
•Does the odometer of the vehicle accurately report the true distance travelled by the motor vehicle?

The motor dealer must also declare that the motor vehicle meets the requirements of the Motor Vehicle Act, or if it is not suitable for transportation, must state that in all written representations about that vehicle.

Demo Vehicle: 
A vehicle that has been used by a motor dealer in the course of normal business operations and was acquired new. If the vehicle has never been registered to a new owner it is still considered a new vehicle, but the use as a demo must be disclosed.

Deposit: 
When a payment is taken as part of a transaction, a deposit may be a separate agreement for a variety of services. It could be an agreement for services, to hold a vehicle, to locate a vehicle, to bring in a vehicle, and/or to arrange financing for a vehicle.  It can be refundable or non-refundable based on what is agreed. To be sure the terms are clear, a written “deposit agreement” is recommended. Info from the Office of Consumer Affairs.

Deposit Agreement: 
A written agreement that describes deposit terms and conditions.  This can include the purpose of the deposit and whether the deposit is, or will become, a down payment or partial payment for a vehicle.

Disability Insurance: 
An optional insurance plan which covers the policy holder in cases of short and/or long term disability.  The amount of coverage varies from plan to plan. The law gives a buyer the option of obtaining this coverage from an insurer of their choice.

Disclose:

Dealers are required to disclose or tell a buyer anything that would be “material” to their decision to buy or not buy a vehicle.  This is in addition to specific “declarations” that must be made during every vehicle transaction.

Dismantle Only: 

A vehicle status. Any insurance company can designate a vehicle as Dismantle Only, which means that the vehicle cannot be repaired and driven.

Distance Sales: 

Long distance sales completed online or by fax, mail, or phone, must follow the same requirements as an in-person sale. If prices vary for the same vehicle in different active ads by the same dealer, you are entitled to the lowest price.

Documentation Fee: 
A negotiable fee charged by a dealer for services such as administration, vehicle registration, a lien check, or vehicle history report.  Fees of this type must be included in the advertised total price of a vehicle unless clearly disclosed as additional. 

Down Payment: 

A sum of money to be paid by the buyer as an initial part of the purchase price.

Extended Warranty:
An extended warranty may be offered as a supplement of extend a manufacturer's warranty to increase the coverage or the length of the warranty period.  This can be on a new vehicle or on a qualifying used vehicle. 

Estimated Residual Value:  
The amount owed at the end of a lease which is an estimate of the fair market value of the vehicle at the end of the term.

Etching Theft Insurance: 
Optional protection to assist in the identification and recovery of a stolen vehicle. BC law requires that buyers be told the coverage is optional. Any additional services or packages presented as mandatory or required need to be included in the advertised "total price".
 

Federal Vehicle Inspection:
An inspection that is part of a federal program which regulates the import of passenger cars, trucks, vans, jeeps, chassis cabs, trailers, motorcycles, off-road vehicles and snowmobiles less than 15 years old and buses manufactured after January 1, 1971 from the USA.

Finance Agreement:  
A written agreement to take out a loan to pay for a vehicle. See Financing below. 

Finance or Finance Placement Fee: 
A negotiable fee charged by some dealers to arrange finanching with a bank or financing company. These fees must be disclosed prior to the agreement being signed and the fee must be included in the Annual Percentage Rate calculations.

Financing: 

Using a loan to pay the dealer the full amount of a vehicle purchase. Financing typically includes a down payment and a series of payments based on an agreed upon interest rate.  With financing, the buyer owns the vehicle and the loan provider records a lien against it. 

Flood Damaged Vehicle: 

A vehicle that has been submerged underwater due to severe weather or flooding. It is considered Dismantle Only and is not safe to drive. Damage is usually internal and may be hard to spot. A vehicle history report can often determine if a vehicle is from a flood affected area.

Foreign Import:  

Refers to a vehicle previously registered outside Canada, usually the USA.

Form 1:  

When you import a car into Canada, you complete a Vehicle Import Form (Form 1), which will be provided to you by Canadian Border Services Agency (CBSA). This form requires a Canadian mailing address. When you pass your vehicle inspection, the inspection centre will stamp your Form 1, which must be presented to the provincial or territorial licensing authority.  Additional provincial inspection requirements (the PVI) apply in B.C.

Freedom of Information and Protection of Privacy Act (FIPPA):  

A provincial law with two main purposes:
1. To make public bodies more open and accountable by providing the public with a legislated right of access to government records, and
2. To protect your right to personal privacy by prohibiting the unauthorized collection, use or disclosure of your personal information by public bodies.

Fuel Consumption:  

The rate fuel is consumed by a vehicle relative to the distance it travels.  The rate is affected by many factors, including the terrain, the driver and the load the vehicle is carrying.  

Fuel Consumption Ratings:  

Ratings can be used for comparison only as they often do not represent a vehicle's true fuel consumption. A rating is determined by a standard test method called the Federal Test Procedure. The Fuel Consumption Guide offers a comparison of ratings between different vehicles.

Grace Period:

In reference to a credit agreement, means a period during which interest accrues on money advanced to a purchaser to purchase a vehicle, but that interest will be forgiven if the purchaser satisfies the conditions specified in the credit agreement. This means that the dealer may be entitled to interest for this period if the purchaser doesn’t meet the conditions of the agreement, for example, by defaulting on payments.

Gross Vehicle Weight Rating (GVWR):  

Gross Vehicle Weight Rating is the maximum allowable total weight of a motor vehicle or trailer when loaded; including the weight of the vehicle itself, plus fuel, passengers, cargo and trailer.

Hit Over:
Vehicle that sustained damages of $2000 and over (professional jargon)
 

ICBC:

The Insurance Corporation of British Columbia providing universal auto insurance to BC motorists.  It is also responsible for driver licensing, vehicle licensing and vehicle registration.

ICBC Transfer Form:  
An APV9T Transfer/Tax Form is an ICBC form used to transfer a motor vehicle from one person to another.  It includes a description of the vehicle, minimum required declarations, the purchase price, the names and addresses of the buyer and seller, both signatures, the date of purchase and the odometer reading. By law this form must be completed within 10 days of a change in ownership.

ICBC Vehicle Damage Inquiry:  
A report from ICBC detailing claims filed against the VIN. This report details only claims filed in BC through ICBC. The report will also show the status of the vehicle (such as rebuilt) or has been imported into BC.  This report is commonly called a 'vehicle history report'. There is a fee for this report. 

ICBC Vehicle Status Inquiry:  
A limited, free ICBC report that shows if a vehicle has a status of normal, rebuilt, salvage, or altered.

Implied Warranty:  
Under the Sale of Goods Act a vehicle is expected to have a reasonable amount of durability given the circumstances of the sale. Therefore there is an implied warranty on every vehicle sold for use as transportation.  No car can be sold “As Is” unless it is sold for parts only, or the consumer expressly waives their specific Sale of Goods Act warranty on a used vehicle.

Independent Mechanical Inspection: 
A mechanical inspection and report prepared y a professional mechanic detailing the current mechanical condition of a vehicle. Differs from the more limited Provincial Vehicle Inspection (PVI).

Insurance: 
There can be many types of insurance associated with a vehicle purchase. It is important to know what you are paying and the coverage and limitations of each. See vehicle insurance, disability insurance, life insurance, and etching or theft insurance.

Interest-free Period: 
In reference to a credit agreement, means a period during which no interest accrues on money advanced to a purchaser to purchase a vehicle. This means that the dealer is not entitled to any interest for this period under any circumstances, even where the purchaser defaults on payments.

Internet Sales: 
Internet and all other long distance sales completed by fax, mail or phone, must follow the same requirements as an in-person sale. If prices vary for the same vehicle in different active ads by the same dealer, you are entitled to the lowest price. 

Lease end Inspections:

Lease agreements usually reguire an inspection for excessive wear and tear at lease end.  This should not be confused with an inspection to certify the vehicle meets the minimum standards of the Motor Vehicle Act is the lessee wishes to buy the vehicle.  Determining who should pay for this additional inspection and where it can be completed should be in the lease agreement terms.

Lease or Lease Agreement:  
A written agreement where the owner (lessor) of the vehicle (dealer, manufacturer, or lease company) allows someone (lessee) to use their vehicle for a period of time for a fee. The agreement will state the lessor and lessee's obligations and rights and what costs must be paid by the lessee during and at the end of the lease period. If the vehicle can be purchased at the end of the lease period, the agreement will identify the rights and obligations of the lessor and lessee regarding buying the vehicle. 

Lease Purchase Option: 
A Lease Purchase Option grants the lessee the right to purchase the vehicle during the term of a lease. The lessee can gain credit towards the purchase price with each lease payment. 

Lemon: 

In the USA all 50 states have lemon laws. When a new vehicle has major problems and is bought back by the manufacturer, it may be marked by the state as a lemon car. A CarProof vehicle history report often will tell if a car has been branded a lemon in the U.S.  Some provinces require a vehicle branded as a Lemon in the US are also branded if imported. 

Lessee: 

A person who leases (rents) a vehicle from a lessor (usually a dealer, manufacturer, or lease company) for a specified amount of time. The lessee does not own the vehicle during this period, but has the right to use the vehicle. Vehicle ownership is transferred only at time of sale. See Lease.

Lessor: 

A dealer, manufacturer, or lease company that owns a motor vehicle and leases it to a lessee for a period of time specified in a written agreement. The lessor owns the vehicle until the lessee buys it out. When the vehicle is sold, the lessor needs to ensure that the vehicle is inspected and meets the requirements of the Motor Vehicle Act. See Lease.

Lien: 

A form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation.

Lien Registration Fee: 

Dealers and finance companies may charge a fee to register a lien against your vehicle to secure a loan. The lien will be recorded with PPSA.ca under the terms of the Personal Property Security Act. The actual government fee in BC is under $50 for a multi-year loan. Larger fee amounts may be loan or finance fees charged by the dealer or lender and should be disclosed as such.  See Finance Placement Fee.

Life Insurance:
An optional insurance plan which aids the policy holder’s beneficiary in cases of death. Coverage varies from plan to plan.

Limited Warranty:
Usually a parts and labour discount provided by the dealership to reduce the cost of future repairs if the vehicle is repaired at the dealership.

Manufacturer’s Warranty:
A warranty provided by the manufacturer of a vehicle that is provided with a new vehicle at no additional cost to the purchaser and is for a specific length of time and/or mileage.  These warranties are usually transfereable to other buyers if the time period or mileage have not been exceeded.

Material or Material Fact:
Any piece of information that may have a significant impact on a consumer’s decision whether or not to buy a product.  It can be something that the seller has actually learned about the vehicle or something about the vehicle that an experienced seller ought to have known.

Misleading Advertisement:
Has the same meaning as a deceptive advertisement. An advertisement that has the capacity, tendency or effect of deceiving or misleading a consumer or guarantor.

MSRP:
Manufacturer’s Suggested Retail Price (MSRP) or sticker price – means the price of a new vehicle that

• is labelled and priced by the manufacturer and not by the dealer
• is the price the manufacturer recommends that the dealer sell the new vehicle for
• includes a list of all of accessories and items of optional equipment physically attached to the new vehicle and the individual price of each accessory or item of optional equipment
• includes transportation charges for its delivery to the dealer, and

includes any pre-delivery and inspection charges.

National Advertisement:
An advertisement for a new vehicle that has been designed or approved by a manufacturer and does not identify any local dealer.

National / Dealer Advertisement:
Also called a co-op ad, means any advertisement designed or approved by a manufacturer in which a specific dealer or group of dealers is named, regardless of whether the manufacturer, a dealer, or a group of dealers pays for some or all of the cost of the advertisement.

NCDA
The New Car Dealers Association of BC speaks on behalf of British Columbia’s new car industry to the public, media, and government, and deals primarily with the legal, environmental, and consumer issues relating primarily to new vehicle sales in British Columbia.

New Vehicle
A vehicle that has not previously been registered and is new from the factory and has been driven very few miles.

Non-Interest Finance Charge
Any charge that a borrower is required to pay in connection with a credit agreement, other than: interest; a prepayment charge; a default charge; a charge for an optional service; a charge for an amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card obtained under the credit agreement. Any of the following expenses, if the credit grantor incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement:
i) fees to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interests in real or personal property,
ii) fees for professional services required for the purpose of confirming the value, condition, conformity to law or location of property that serves as security for a credit agreement, if the borrower is given a report signed by the person providing the professional services and is free to give the report to third persons,
iii) premiums for casualty insurance on the subject matter of a security interest, if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter, or
iv) premiums for any insurance provided or paid for by the credit grantor in connection with a credit agreement if the insurance is optional.
In the case of a credit sale, any charge that would also be payable by a cash customer.

Non-refundable:  

Terms and conditions under which monies paid to a dealer for deposits, down payments, partial payments, etc. cannot be returned. Simply stating the transaction is non-refundable with no other terms attached may be a deceptive act.

Normal Status:  

If a vehicle does not have a status of rebuilt, salvage or altered, it is considered to have a normal status. "Normal" is simply a term used for the purposes of vehicle registration.
A normal status does not mean the vehicle has never been damaged or is in good mechanical condition. Vehicle status alone does not fully describe a vehicle's mechanical condition or damage history.

Not Suitable For Transporation:
A vehicle that is in a condition which prevents it from being insured for road use. If a vehicle is sold as not suitable for transportation it cannot be driven off the dealer’s lot and must be towed.

Odometer:
An odometer is a device used for indicating distance traveled by an automobile or other vehicle. It may be electronic or mechanical.

Odometer Replacement
Repairing a damaged odometer is permitted. However, a vehicle’s odometer reading must be recorded before replacing it or making a repair that causes the reading to be changed. The repair must be disclosed on a sales order or purchase agreement and in permanent written repair records. Ideally, the replacement odometer will be reset to match the actual prior mileage.

Odometer Tampering:
It is illegal for anyone to disconnect, alter or replace an odometer to mislead a consumer about the distance a vehicle has traveled. It is also illegal for anyone to drive a vehicle with a demonstration licence (D-plate) unless the odometer is working properly. Odometer tampering is an offense under the Criminal Code of Canada.

Offer to Purchase:
A formal legal agreement which offers a specified price for a specified vehicle. The offer may be firm (no conditions attached) or conditional (certain conditions apply).

One Clear Day:
One clear day is a legal term based on business days that requires knowing many factors. Sundays, provincial statutory holidays and days the dealership is normally closed do not count. It is not based on a 24 hour day. For example, if a lease is signed on a Tuesday, the dealer must be notified of a decision to cancel no later than the end of the day on Wednesday.  Notification during business hours is recommended.

Option to Purchase:
Also known as Lease Purchase Option. It grants the lessee the right to purchase the vehicle during the term of the lease. The lessee can gain credit towards the purchase price with each lease payment.

Owner’s Certificate of Insurance and Vehicle Registration:
The top portion of the document you get from your broker when you register, license and insure your vehicle. The signed certificate must be carried in your vehicle as proof that the vehicle is licensed and insured.

Partial Payment:
If a deposit is taken as part of an agreement to purchase a specific vehicle when all the terms and conditions are known, it may be a partial payment and the consumer then has a vested or ownership interest in the vehicle.

Parts and Labour Warranty:
A limited warranty usually provided by the dealership to reduce the cost of future repairs to a used vehicle if it is repaired at the dealership.

Parts Only:
A vehicle that is Not Suitable for Transportation. If a vehicle is sold as Parts Only it cannot be driven off the dealer’s lot and must be towed.

PDI:
Pre-Delivery Inspection completed on a new vehicle by a dealership following delivery from the manufacturer.

PPSA:
PPSA generally means the B.C. Personal Property Security Act. This Act provides rules in British Columbia for applying and registering liens or other rights against personal property. PPSA may also mean PPSA.ca, which is a private company where a person can register liens in any jurisdiction in Canada. Also see Lien Registration Fee.

Price Benefit or Advantage:
An inducement to purchase a vehicle which results in an actual savings for a purchaser. Under law, price benefits must be real.

Privacy:
The Personal Information Protection Act (PIPA) is a provincial law that sets out how most businesses and private organizations in British Columbia may collect, use, and give out personal information. The purpose of PIPA is to protect a person’s right to privacy over their personal information, while providing reasonable rules that allow organizations to collect, use, and give out personal information when it is necessary.

Private Sale:
The sale of a vehicle to an individual from another individual who is selling their personal property.

Private Vehicle Inspection or PVI:
The official name for an inspection done by a Designated Inspection Facility to determine if the vehicle meets the legal requirements under the Motor Vehicle Act and its regulation for such safety concerns as brakes, lights, horn, steering etc.

Pro-Pac or Protection Package:
Optional service offered for an extra price and aimed at making on-going maintenance of the vehicle simpler and easier by professionally applying additional exterior and interior protection.  Any additional services or packages presented as mandatory or required need to be included in the advertised “total price”.

Provincial Safety Inspection:
A common name for the inspection done by a Designated Inspection Facility to determine if a vehicle meets legal requirements under the Motor Vehicle Act for such safety concerns as brakes, lights, horn, steering etc

Purchase Agreement:
A legal document prepared by a dealer to a buyer consumer, reporting that on a specific date, at a specific locality, and for a particular sum of money and/or trade, the dealer sold to the buyer a specific vehicle of which they had lawful possession. It is a written instrument which is evidence of the transfer of title to personal property from the seller to the buyer.

Rebuild or Rebuilt:
A vehicle that was written off as a total loss by an insurance company, rebuilt and certified for use on the highway. The vehicle must pass a structural inspection and a PVI. This term does not describe a vehicle that has a new or repaired motor, transmission or other major part.

Recall:
A vehicle recall is a campaign under which a manufacturer notifies all owners of a specific vehicle of a condition or defect that could affect safety or safe operation of the vehicle. Work dictated by a recall is completed at no charge to the vehicle owner.  

Reconditioned:
A term used to describe a vehicle that has been repaired or improved in some way. Not to be confused with Rebuild or Rebuilt.

Refundable:
Condition under which any payments are returnable. In regards to deposits, down payments, partial payments, etc. a dealer must outline, preferably in writing, the terms under which any payments made to the dealer are refundable.

Residual Value:
The amount owed at the end of a lease which is an estimate of the fair market value of the vehicle at the end of the term.

Safety Inspection:
An inspection done by a motor dealer or mechanic indicating their opinion that a vehicle does or does not meet minimum safety requirements. Not all safety inspections meet the same standards or test the same things as the provincial Private Vehicle Inspection or PVI. A vehicle that passes a safety inspection may or may not pass a Private Vehicle Inspection.

Sales Agreement:
A legal document prepared by a dealer to a buyer consumer, reporting that on a specific date, at a specific locality, and for a particular sum of money and/or trade, the seller sold to the buyer a specific vehicle of which they had lawful possession. It is a written instrument which is evidence of the transfer of title to personal property from the seller to the buyer.

Salesperson Advertisement:
An advertisement placed by a salesperson regardless of who pays for the advertisement. The dealer number must appear in this ad.

Salvage:
A vehicle that has been written off as a "total loss" by an insurance company, is unsafe to drive, but is repairable and can be driven after re-inspection. Once repaired, the vehicle must pass a structural inspection and a PVI and will have a Rebuilt status.

Security Deposit:
Money collected at delivery for security on a lease. It is usually refunded at the end of the lease or applied against the buy-out amount.

Serial Number:
Usually the Vehicle Identification Number or VIN, but for some vehicles, such as recreational vehicles, there may be an additional unique number for identification purposes.

Stock number:
A unique number assigned to an individual vehicle in a dealer inventory.

Structural Integrity Assessment (SIA):
A structural integrity assessment (SIA) is the second of two tests required for a rebuilt vehicle to pass in order to be deemed roadworthy and insurable in British Columbia. A rebuilt vehicle must also pass the Private Vehicle Inspection (PVI). The SIA tests a vehicle’s frame, alignment and other structural safety components (ie. doors and welds) to ensure its structure meets the performance requirements originally set by the manufacturer. A rebuilt vehicle’s rust protection is also assessed to ensure it meets the manufacture’s specifications.

Structural Integrity Assessment Report:
The report of a designated Structural Integrity Assessment (SIA) inspection facility indicating a vehicle has or has not passed an SIA.

Tax advantage:
Tax legislation allows the taxable value of a vehicle purchase to be reduced by the value of any trade-in.  This can result in a tax benefit not available with private purchases.  Example:

• New vehicle price – $25,000
• Less value of trade-in – $10,000
• Taxable value – $15,000
• Tax savings at 12% (GST and PST) – $1,200

Tax or Taxes:
A tax is a financial charge or other levy upon an individual or legal entity by the Federal or Provincial Government. The required taxes for a motor vehicle sale are the provincial sales tax (PST), federal sales tax (GST) and the tire levy or tire recycling fee. The PST rate varies from 7% to 12%, depending on the vehicle and the terms of the sale.  The taxable amount may be reduced if there is a qualified trade-in or exemption.

Technical Service Bulletin:
A technical service bulletin is an advisory issued by a manufacturer for use by dealership service departments that addresses recurring problems and includes illustrated instructions for repair, a list of the parts needed, the warranty status and the labor charge.

Term:
The term is the length of a lease or loan in months

Third Party Warranty:
A warranty purchased from or provided by a dealer from an independent insurance company to insure against the cost of future repairs. In general, a third party warranty excludes existing problems and cannot be purchased unless the vehicle has had a mechanical inspection.

Tire Levy:
For new vehicle tires, and if new tires are placed on a used vehicle as part of the sale agreement, the purchaser is required to pay the Advance Disposal Fee (ADF) of $5.00 per tire plus GST and PST. The ADFs vary by tire type. More Info

Total Loss:
If it is not economical to repair your vehicle, ICBC and other insurers may consider the vehicle to be a write off. In insurance terms, this is called a "total loss."

Total Price:
The total price is the total obligation or amount that is payable, given, undertaken or assumed by a consumer under a consumer transaction. On a new vehicle, it includes accessories or optional equipment physically attached to the vehicle, transportation charges, pre-delivery inspection services, and any non-negotiable dealer fees and options.

Total price does not have to include taxes, licence fees or insurance costs, but an advertisement must clearly state whether or not these costs are included.

Towing Capacity:
The maximum allowable weight a vehicle can tow. Exceeding this limit may void warranties and create unsafe driving conditions.

Trade-in:
The purchaser’s current vehicle, which is sold to the dealership for an agreed upon price as part of a new or used vehicle purchase agreement.

Transfer Fee:
This fee is paid to the Autoplan agent to transfer the ownership of the vehicle to the buyer.

Transfer Form:
An APV9T Transfer/Tax Form is an ICBC form used to transfer a motor vehicle from one person to another. It includes a description of the vehicle, declarations, the purchase price, the names and addresses of the buyer and seller, both signatures, the date of purchase and the odometer reading. By law this form must be completed within 10 days of a change in ownership.

Unlicensed Dealer:
An individual or business selling vehicles for profit, often by posing as a private seller.. Also known as a "Curber".

Unsafe Vehicle:  
A vehicle that does not meet the minimum legal requirements under the Motor Vehicle Act for safety features such as brakes, lights, horn, steering, etc.

Used Vehicle: 
A vehicle that has previously been registered to one or more individuals regardless of the mileage.

Vehicle:
A motor vehicle as defined by the Motor Dealer Act and includes some non-motorized trailers.

Vehicle History Report:  
A detailed report searched using the VIN. Depending on the report selected it may show other provinces or countries that the vehicle has been registered in; any liens currently attached to the vehicle; and any damages that have been reported through insurance agencies.

Vehicle Insurance: 
All motorists in B.C. must carry basic automobile insurance. For residents, it is provided through ICBC's Basic Autoplan.

Vehicle Identification Number (VIN): 
The Vehicle Identification Number is a serial number unique to each motor vehicle. It is found in multiple places and all numbers should match. It is 17 characters long and assigned by the vehicle manufacturer. The VIN number is needed to search vehicle histories. In rare cases ICBC can issue a VIN.
 

Warranty:
There are many types of warranties (Manufacturer’s, Extended, Third Party, Limited or Parts and Labour, Implied), so it is important to know what kind of warranty you are purchasing or being provided with.

Worksheet:  
A rough draft of an agreement to purchase a vehicle. A worksheet gives the consumer a rough idea of the price of the vehicle, the price allowance for a trade- in, price of options, and applicable taxes and fees.  Buyers are often asked to sign a worksheet as a show of good faith.  Howver, a signed worksheet is likely not a binding contract if all the terms of the sale are not known and an authorized agent of the dealership has not signed it.

Write-Off: 
A vehicle that was written off as a "total loss" by an insurance company.