Ontario Regulates Car Dealers; Trade-In Pricing Under Scrutiny

Regulators have begun overseeing car dealers operating within the province of Ontario. A consumer protection officer noted that while selling a vehicle privately may yield more money than a dealer trade-in, trading in a vehicle provides a sales tax benefit.

The new oversight addresses concerns that dealers typically offer trade-in values based on wholesale prices. These wholesale values can be $2,500 to $5,000 below retail value for a vehicle in the $30,000 range, impacting consumer purchasing costs in Ontario.