Dear Licensees,
The Vehicle Sales Authority of British Columbia (VSABC) has identified compliance concerns related to the disclosure of finance placement fees and other non-interest costs of borrowing by motor dealers.
Finance placement fees and other non-interest costs of borrowing must be included in the Annual Percentage Rate (APR) disclosed to consumers. These requirements apply to advertisements, purchase agreements, and finance disclosure documents when a credit offering is represented.
This bulletin serves as a reminder of dealers’ obligations under the Business Practices and Consumer Protection Act (BPCPA), the BPCPA – Disclosure of the Cost of Consumer Credit Regulation, and the Motor Dealer Act Regulations.
Please take a moment to review the information below.
APR Disclosure Requirements under the BPCPA
Motor dealers are required under the BPCPA to properly disclose APR for both loans and leases.
Any advertisement that contains a representation to a credit offering must disclose the APR. In addition, when a dealer arranges financing, certain minimum disclosure information must be provided before the consumer enters into the finance agreement, including but not limited to:
Disclosure must be given to the consumer before they enter into the finance contract.
What is APR?
Under the BPCPA, “APR” “means the annual percentage rate calculated in accordance with the regulations.”
In practical terms:
Where a finance placement fee or other non-interest cost applies, the total cost of borrowing must be disclosed, and the APR must reflect those costs. Motor dealers are responsible for itemizing any non-interest cost of borrowing charges on purchase agreements under the Motor Dealer Act Regulation and the BPCPA. Anywhere a payment and interest rate is stated in relation to the sale of a vehicle the APR must also be disclosed.
Stating an incorrect APR, or failing to state the APR, will very likely be found to be a breach of the Motor Dealer Act Regulations and the BPCPA. Additionally, motor dealers cannot hide the finance placement fee within a total price, as that would offend BPCPA section 5(1). Hiding the finance placement fee in the total price of the vehicle would amount to a deceptive act or practice.
Questions?
If you have any questions regarding APR disclosure, finance placement fees, or motor dealer compliance obligations, please contact the VSA’s Industry Standards department:
BPCPA Amendments Effective Aug. 1, 2026
The remaining amendments to the Business Practices and Consumer Protection Act (BPCPA) previously communicated by the VSA will come into force effective August 1, 2026.
To support licensees in understanding these upcoming requirements, the VSA has created a detailed webinar outlining the changes, which can be viewed HERE on our website.
Earlier updates on the BPCPA amendments can be found below:
