Motor vehicle dealer registration
In Ontario, anyone who buys and sells motor vehicles as a business — including a used car dealership — generally has to be registered with OMVIC, the province’s motor vehicle dealer regulator. Registration is tied to the individual and the dealership entity, so a buyer acquiring a dealership typically needs its own registration rather than inheriting the seller’s.
Selling cars, trucks or other motor vehicles as a business in Ontario generally requires registration with the province’s motor vehicle dealer regulator, which oversees dealers and salespeople to protect consumers. Registration attaches to the specific dealer and dealership, not to the inventory or the premises, so it does not automatically pass along in a sale.
What a buyer generally needs to arrange
- Registering the new dealership entity and any individual salespeople before selling vehicles under new ownership.
- Confirming the dealership’s compliance history and any open complaints, since these can follow the business’s reputation even under new ownership.
- Understanding bonding or financial requirements the regulator applies to registered dealers.
Why timing matters
Because registration involves its own review and approval process, buyers typically start the application well before the planned closing date so the dealership isn’t left unable to legally sell vehicles the day ownership changes.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Ontario Motor Vehicle Industry CouncilRegulatorHow to Become a Dealer in Ontario
- 02Treadstone LawLegal commentaryBuying & Selling a Business
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