OMVIC Requests Dealer Feedback On Proposed Fee Increases
The Ontario Motor Vehicle Industry Council proposed to its members in a recent bulletin an increase in fees to make sure OMVIC is adequately funded and able to administer the Motor Vehicle Dealers Act.
The three fees that generate revenue for OMVIC that are being considered for price hikes are the salesperson renewal fee, (currently $175 for two years), the base dealer renewal fee (currently $250 for one year) and the transaction portion of the dealer renewal fee ($5 per transaction).
That said, the board has expressed it prefers to leave the salesperson renewal fee at the current level, citing how hard the professional sales force works and wanting to “protect them from an increase.”
That said, the base dealer renewal fee of $250 has stayed consistent since 2000. The board is considering raising this fee up to $125, depending on changes to the transaction fee.
The transaction fee has stayed the same since 2008, and the board is proposing raising this fee from anywhere from $3 to $5.
OMVIC reported its preferred fee change would be to leave the base dealer renewal fee as is and add $5 to the transaction fee.
The board, who has ultimately authority in these decisions is made up of nine dealers and three public members.
“In the coming years, OMVIC is forecasting deficits where costs will exceed revenues. Clearly this is not sustainable and the board has determined that it’s time to review fees,” OMVIC reported. “Although it is the exclusive authority of the board to increase fees, the board wants to consult with its registrants as to the best way forward.”
All member feedback must be received by OMVIC by May 25.