VSA Industry Bulletin
July 29, 2026

FY 2027 | Formal Complaints Increase

Formal complaints to the VSA increased by 44% in the first quarter of FY 2027 compared to Q1 of FY 2026.

To support licensees in preventing these common issues, we’ve compiled practical tips and recommendations to help enhance compliance and consumer protection.

Mechanical Condition

Motor Dealer Act (MDA) regulation requires that all material facts about a vehicle be disclosed to a consumer before it is sold. It continues to be a best practice for licensees to ensure a vehicle has undergone a recent mechanical inspection prior to a sale or lease. Vehicle History Reports (VHR) are also one of the many tools available for dealers to meet their legal duties to enquire and disclose. Learn more here.

Credit Financing

Complaints of dealer’s providing false information to lenders to qualify a person for financing is on the rise. The VSA is starting to receive complaints from lenders against dealers about this practice. When offering credit financing to a customer, always be transparent and truthful, avoiding deceptive acts—which can occur before, during, and after the transaction. Ensure full compliance with applicable legislation and lending regulations. Understanding your legal obligations helps build trust and protect both your business and the customer. For more information, please refer to the VSA’s General Guidelines for Motor Dealers, which includes important details on offering credit.

Warranty

While the VSA does not have jurisdiction over warranties, it remains a licensee’s responsibility to ensure a customer fully understands what they are purchasing, including any warranty terms – and what costs the customer is responsible for. Ensure a warranty is properly disclosed as a separate line item on a purchase agreement to avoid any confusion on the customer’s part. Dealers have an obligation to remit warranty premiums to the warranty companies in a timely manner to ensure continuity of coverage for consumers.

Deposits

In some cases, after a deposit has been placed on a vehicle, a customer may want to change their mind about their purchase or lease. If there is a written purchase agreement, the MDA requires the terms and conditions when a deposit is refundable and non-refundable to be clear. The VSA strongly encourages having a written deposit agreement. Learn more about deposits and find a sample deposit agreement here.

Non-Disclosure of Damage

The Motor Dealer Act Regulation requires licensees to disclose cumulative vehicle damage exceeding $2,000, including damage caused by accidents, vandalism, theft and windshield claims. Dealers must take reasonable steps to investigate a vehicle’s history and ensure all required declarations are accurately included on the purchase agreement and applicable transfer documents. Vehicle history reports, service records and inspections can help identify prior damage and support a licensee’s duty to enquire and disclose. The VSA recommends disclosing all known damage and providing customers with as much information as possible.