OMVIC Practice Test

If a dealer's advertisement contains a price for a vehicle, that price must include:

1. Administration fees

2. Freight and PDI

3. Taxes (unless ad states in a clear, comprehensible and prominent manner that taxes are not included)

4. All of the above

The correct answer is: All of the above

When an advertisement by a dealer lists a price for a vehicle, it is essential that the price reflects the total amount a consumer can expect to pay. This requirement ensures transparency and helps protect consumers from hidden costs that could lead to confusion or misrepresentation. Including administration fees is critical, as these are often standard costs associated with the sale of a vehicle that consumers should be aware of upfront. Ignoring these fees would mislead potential buyers regarding the actual amount they will need to spend. Freight and PDI (Pre-Delivery Inspection) costs are also integral to the final vehicle price. These fees result from the delivery of the vehicle to the dealership and the necessary preparations before it can be sold. Not disclosing these fees in the advertised price would fail to give a complete picture of the total cost to the buyer. Additionally, taxes must be included unless the advertisement clearly states otherwise in a manner that is easy to understand and visually prominent. This requirement is vital because sales tax significantly affects the actual price a buyer pays for a vehicle. By mandating that all these components—administration fees, freight and PDI, and taxes—be included in the advertised price, consumer protection regulations aim to promote fair and honest advertising practices within the vehicle sales industry,