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In April 2025, consumer cases (this includes enquiries and complaints) rose by 11% compared to the same month in 2024, with the most frequently reported issue being Misrepresentation of Mechanical Condition.
To support licensees in mitigating these top complaints, we have listed some practical recommendations to help strengthen compliance practices.
Mechanical Condition
Motor Dealer Act (MDA) regulation requires that all material facts about a vehicle be disclosed to a consumer before it is sold. It continues to be a best practice for licensees to ensure a vehicle has undergone a recent mechanical inspection prior to a sale or lease. Vehicle History Reports (VHR) are also one of the many tools available for dealers to meet their legal duties to enquire and disclose. Learn more here.
Credit Financing
When offering credit financing to a customer, always be transparent and truthful, avoiding deceptive acts—which can occur before, during, and after the transaction. Ensure full compliance with applicable legislation and lending regulations. Understanding your legal obligations helps build trust and protect both your business and the customer. For more information, please refer to the VSA’s General Guidelines for Motor Dealers, which includes important details on offering credit.
Deposits
In some cases, after a deposit has been placed on a vehicle, a customer may want to change their mind about their purchase or lease. If there is a written purchase agreement, the MDA requires the terms and conditions when a deposit is refundable and non-refundable to be clear. The VSA strongly encourages having a written deposit agreement. Learn more about deposits and find a sample deposit agreement here.
Warranty
While the VSA does not have jurisdiction over warranties, it remains a licensee’s responsibility to ensure a customer fully understands what they are purchasing, including any warranty terms – and what costs the customer is responsible for. Ensure a warranty is properly disclosed as a separate line item on a purchase agreement to avoid any confusion on the customer’s part. Dealers have an obligation to remit warranty premiums to the warranty companies in a timely manner to ensure continuity of coverage for consumers.
Selling Process
Ensure you take the time to clearly explain all documents, and every part of the transaction to your customer. This includes reviewing the purchase agreement, financing terms, warranties, add-ons, and any other contractual documents. Walk through each section with the customer, answer their questions thoroughly, and confirm their understanding before they sign.
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