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Advance Disposal Fee

Consumers are responsible for paying a fee of $4 per new tire, when purchasing a new vehicle. However, if new tires are placed on a used vehicle as part of the sale agreement, the purchaser is required to pay the Advance Disposal Fee of $5.00 per tire plus GST and PST.  Also known as the Tire Levy. more info

Air Conditioning Tax

An Air Conditioning tax of $100 may be payable when you purchase a new vehicle with air conditioning at less than Manufacturer’s Suggested Retail Price (MSRP). This tax does not apply to used vehicles.

Advertisement

Means any type of solicitation that is oral, written, visual, descriptive or any other representation or conduct by a dealer/salesperson, either directly or indirectly, which urges consumers to buy their vehicles, products, or services. This includes, but is not limited to a solicitation that is: on a vehicle; at the dealership; at promotional or marketing events or an off-site sale; on radio, television, the internet or distributed by other electronic means; a telephone solicitation or telemarketing; sent via mail or e-mail; published in a newspaper or a magazine; printed on a flyer, brochure, sign, poster, showroom display or other printed material.

Aftermarket Warranty

Or aftermarket extended warranty, is a warranty provided by a third party on a used vehicle that requires the purchaser to pay an additional cost.

Altered

Altered status is given to a vehicle that has been significantly modified after its manufacture. It is also used for homemade and some other constructed vehicles to indicate that they have been inspected and are structurally sound. The status is added after the vehicle passes inspection.

APR

(Annual Percentage Rate) An interest calculation that represents an effective rate of interest accruing over a one-year period.  The formula for calculating APR is found in the Disclosure of the Cost of Consumer Credit Regulation, under the Business Practices and Consumer Protection Act. Chapter 2, Part 5, Division 1. more info

APV9T

An APV9T Transfer/Tax Form is an ICBC form used to transfer a motor vehicle from one person to another. It includes a description of the vehicle, declarations, the purchase price, the names and addresses of the buyer and seller, both signatures, the date of purchase and information, such as the odometer reading, plus instructions for completing the form. This form must be completed within 10 days of a change in ownership. see sample form

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Balloon Payment

A balloon payment is a large, lump-sum payment that is scheduled or due at the end of a series of considerably smaller periodic payments. It may be included in the payment schedule for a loan, lease, or other stream of payments.

Battery Levy

When you purchase a new vehicle with a lead-acid battery, a provincial environmental battery levy of $5 is paid with only GST due. The levy does not apply to used vehicles, except when a new battery is placed in a used vehicle as part of the sale agreement.  The purchaser is required to pay the levy and GST and PST are charged. more info

BCAA

British Columbia Automobile Association.  A non-profit organization providing towing, insurance, travel and inspection services.

Bill of Sale

The Bill of Sale is a legal document used to transfer the title to personal property from the seller (dealer) to the buyer (consumer). It is prepared by a seller and reports that on a specific date, at a specific locality, and for a particular sum of money and/or trade, the seller sold to the buyer a specific vehicle of which he had lawful possession.

Black Book

Canadian Black Book is a source for new and used vehicle pricing and information.

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Canadian Import

Refers to a vehicle previously registered in another province.

CarProof

A Canadian-based used-vehicle history reporting service. For a fee, CarProof enables you to use the Internet to search by the VIN for a complete vehicle history report.

Cash Price

In relation to an advertisement that offers credit on a specific vehicle: the price at which the vehicle is currently offered to cash customers, or if the dealer/salesperson does not currently offer the vehicle to cash customers, the dealer/salesperson's reasonable estimate of the price at which cash customers would buy the vehicle.

Certificate of Insurance and Vehicle Licence

The Certificate of Insurance and Vehicle Licence is a document given by an insurance broker when a vehicle is insured and licensed and is carried in the vehicle as proof of licensing and insurance.  Before you can get licence plates and insurance for a vehicle in British Columbia, the vehicle must be registered with ICBC. Registering serves as the official record of your vehicle and identifies you as its owner.

Comprehensive Insurance

For vehicles, comprehensive insurance coverage pays to repair or replace the policy owner's vehicle and personal property inside the vehicle, if it is damaged or lost due to causes not covered by collision insurance, such as fire, theft, flood or vandalism. more info

Consigned Vehicle

Means a vehicle that is on consignment with a motor dealer in accordance with the Motor Dealer Consignment Sales Regulation.

Consignment

Consignment means an arrangement by which a vehicle is entrusted to a motor dealer for sale by the motor dealer; under a conditional sale to the motor dealer for the purpose of resale, or to display by the motor dealer for sale.

Contract

See Purchase, Sales, Lease or Finance Agreement

"Cooling-off Period"

"Cooling-off" period only applies to leasing vehicles. After you enter into a lease agreement with the motor dealer, you may cancel the lease without penalty during a 24-hour period as long as the dealer keeps the vehicle. You may waive this requirement in writing. Contrary to popular belief, there is no cooling-off period on the purchase or finance of a new vehicle in British Columbia. A dealer may have a return or exchange policy, which the purchaser should get a copy of in writing prior to purchase.

Curber

An individual who poses as a private seller, but conducts business by selling vehicles for profit. Info from VSA, info from the BC Canadian Bar Association, info from the Automotive Retailers Association.

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Dealer Advertisement

Any advertisement by a vehicle dealer or group of dealers.

Dealer Cost

The cost of a specific vehicle to the dealer minus any discounts, volume rebates or other reductions from the manufacturer or supplier in the cost of placing that vehicle in the dealer inventory.  Dealer cost must not include any allocation for the dealer’s overhead or operating expense.

Dealer Inventory

A stock of new or used vehicles that a dealer has on hand and which the dealer has authority to sell.

Dealership Mechanical Inspection

An inspection completed by the dealership staff and provided to the buyer.  Dealership inspections can be very limited or very comprehensive.  Always request a copy if one is not provided. more info

Dealer Warranty

A warranty on a used vehicle provided by a dealer that is usually limited to a specified period of time and distance travelled, and may include coverage limits such as a power train warranty or a savings on labour.

Declarations (Decs)

At time of sale a dealership must declare: whether the motor vehicle has been used as a taxi, police or emergency vehicle or in organized racing; whether the motor vehicle has:

(i)  in the case of a new motor vehicle, sustained damage requiring repairs costing more than 20% of the asking price of the motor vehicle, or

(ii)  in the case of a used motor vehicle, sustained damages requiring repairs costing more than $2000; whether the motor vehicle has been used as a lease or rental vehicle; whether a used motor vehicle has been previously registered in another province or country; or whether the odometer of the motor vehicle accurately records the true distance travelled by the motor vehicle.

The motor dealer must also declare that the motor vehicle meets the requirements of the Motor Vehicle Act, or if it is not suitable for transportation, must state that in all written representations about that vehicle.

Demo Vehicle

A vehicle that has been used by a motor dealer in the course of normal business operations and was acquired new. If the vehicle has never been registered to a new owner it is still considered a new vehicle.

Deposit

A sum of money paid by the buyer to the seller, to be forfeited if the buyer does not perform its part of the contract.  Depending on when it is taken in during a transaction, a deposit may be a separate agreement for a variety of services. It could be an agreement for services: to hold a vehicle; to locate a vehicle; to bring in a vehicle; and/or to arrange financing for a vehicle. More info from the VSA, info from Consumer Affairs Victoria.

Disability Insurance

An optional insurance plan which covers the policy holder in cases of short and/or long term disability. The amount of coverage varies from plan to plan.

Dismantle Only

Any insurance company can designate a vehicle as Dismantle Only, which means that the vehicle cannot be repaired and driven.

Documentation Fee or Doc Fee

A fee charged for a service, such as administration, finance, registration, a lien check, vehicle history report, or any other fee for a service provided to a consumer that is included in the sale of a vehicle.

Down Payment

A sum of money to be paid by the buyer as an initial part of the purchase price.

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Estimated Residual Value

A reasonable estimate of the wholesale value of a leased vehicle at the end of the lease term, made by the lessor at the time the lease was entered into. 

Etching

An insurance product that includes etching the VIN (vehicle identification number) on doors, windows, fenders and the trunk lid to discourage theft and provide loss coverage.

Extended Warranty

A warranty that requires the purchaser to pay an additional cost, either directly or through an agreement to purchase some specified products or services.  An extended warranty may be offered as a supplement to a manufacturer’s warranty to increase the coverage or the length of the warranty period on a new vehicle, or to provide warranty coverage on a used vehicle.

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Federal Vehicle Inspection

An inspection that is part of a federal program which regulates the import of passenger cars, trucks, vans, jeeps, chassis cabs, trailers, motorcycles, off-road vehicles and snowmobiles less than 15 years old and buses manufactured after January 1, 1971 from the USA. more info

Financing

Means when you take out a loan in order to pay the dealer the full amount of a vehicle purchase.  Typically you make a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company, based on your credit history.

Finance Agreement

A written agreement to take out a loan to pay for a vehicle. See Financing above.

Foreign Import

Refers to a vehicle previously owned outside Canada, usually the USA.

Form 1

When you import a car into Canada, you complete a Vehicle Import Form (Form 1), which will be provided to you by Canadian Border Services Agency (CBSA). This form requires a Canadian mailing address. When you pass your vehicle inspection, the inspection centre will stamp your Form 1, which you will have to present to your provincial or territorial licensing authority, which may have additional testing requirements. more info

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