VSA

Registrar's Decision

Registrar's Decision 10-009

File Number: 10-009 =

In the matter of THE MOTOR DEALER ACT R.S.B.C.1996 C.316
and THE BUSINESS PRACTICES AND CONSUMER PROTECTION ACT S.B.C. 2004 c.2

Complainant: REGISTRAR

Licensee/Unlicensed person:

LCB AUTOS LTD.

Issues:

  • New applicant for motor dealer registration sought authorization to sell on consignment.
  • Authority staff were concerned with the application for registration for three reasons:
  • Lack of experience by the motor dealer and its directing mind (less than three years);
  • Under funding and financial backing of the motor dealership; and
  • The business plan was dependent on consignment sales.
  • Hearing was called at the request of the applicant to review consignment sales authorization.

Outcome:

  • The Registrar explained the law regarding licensing decisions and its policy rationale regarding consignment sales.
  • The motor dealer was too dependent on consignment sales from too narrow a source.
  • The motor dealer lacked the necessary experience in running a motor dealership.
  • The motor dealer lacked financial backing to independently obtain inventory and weather the ebb and flow of used car sales.
  • The Registrar found it was not in the public interest to authorize LCB to conduct consignment sales.
  • The motor dealer was free to resubmit a business plan without consignment sales and cautioned that it would still need to address its under-funding.

Click here for the full decision (PDF)