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- G -

Grace Period

In reference to a credit agreement, means a period during which interest accrues on money advanced to a purchaser to purchase a vehicle, but that interest will be forgiven if the purchaser satisfies the conditions specified in the credit agreement.  This means that the dealer may be entitled to interest for this period if the purchaser doesn’t meet the conditions of the agreement, for example, by defaulting on payments. (See the Business Practices and Consumer Protection Act for a statutory definition.)

GVWR

Gross Vehicle Weight Rating is the maximum allowable total weight of a motor vehicle or trailer when loaded; including the weight of the vehicle itself, plus fuel, passengers, cargo and trailer. more info

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"Hit Over"

Vehicle that has sustained damages of $2000 and over (professional jargon).

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ICBC

The Insurance Corporation of British Columbia providing universal auto insurance to BC motorists, as well as responsible for driver licensing, and vehicle licensing and registration.

ICBC Transfer/Tax Form

See 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

ICBC Vehicle Damage Inquiry

A report from ICBC detailing claims filed against the VIN.  This report only details claims filed in BC through ICBC.  The report will also show if the vehicle has a rebuilt status or has been imported into BC. This report is commonly called a ‘vehicle history report.’  There is a fee for this report. see sample report

ICBC Vehicle Status Inquiry

A limited, free ICBC report that shows if a vehicle has a status of normal, rebuilt, salvage or altered. more info

Implied Warranty

Under the Sale of Goods Act a vehicle is expected to have a reasonable amount of durability given the circumstances of the sale. As such there is an implied warranty on every vehicle purchase and no car is As Is unless it is sold for parts only, or the consumer expressly waives their specific Sale of Goods Act warranty on a used vehicle.

Independent Mechanical Inspection

A mechanical inspection and report prepared by a professional mechanic detailing the current mechanical condition of a vehicle. Differs from a Provincial Safety Inspection.

In-Service Date

The start date that a manufacturer’s warranty comes into effect. It is the date a new vehicle was first purchased and used by the original owner.

Insurance

There can be three types of insurance associated with a vehicle purchase. It is important to know what you are paying.  See vehicle insurance, life insurance and disability insurance.

Interest-free Period

In reference to a credit agreement, means a period during which no interest accrues on money advanced to a purchaser to purchase a vehicle.   This means that the dealer is not entitled to any interest for this period under any circumstances, even where the purchaser defaults on payments.  (See the Business Practices and Consumer Protection Act)

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Lease or Lease Agreement

A written agreement under which a vehicle owner allows another party to use the vehicle for a specified period of time at a pre-determined monthly fee.

Lease Purchase Option

A Lease Purchase Option grants the lessee the right to purchase the vehicle during the term of the lease. The lessee can gain credit towards the purchase price with each lease payment.

Lemon

In the USA approximately 20 states have lemon laws. When a new vehicle has major problems and is bought back by the manufacturer, it may be marked by the state as a lemon car.  A CarProof vehicle history report often will tell if a car has been branded a lemon in the U.S.

Lessee

A person who leases or rents a motor vehicle from a lessor for a period of time.

Lessor

The company or person that owns a motor vehicle and is leasing it to the lessee for a period of time under an agreement in writing and in the ordinary course of the person's business.

Licence Fees

Required fees to licence a vehicle in BC if you do not have a licence to transfer to the vehicle.  It is paid to the Autoplan agent.

Lien

A form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation.

Life Insurance

An optional insurance plan which aids the policy holder’s beneficiary in cases of death. Coverage varies from plan to plan.

Limited Warranty

Usually a parts and labour discount provided by the dealership to reduce the cost of future repairs if the vehicle is repaired at the dealership.

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Manufacturer’s Warranty

A warranty provided by the manufacturer of a vehicle that is provided with a new vehicle at no additional cost to the purchaser and is for a specific length of time and/or mileage.

Material Fact

Information that may have a significant effect on a consumer’s decision whether or not to buy a product or service.

A fact or information that would be important to a reasonable person in deciding whether to engage or not to engage in a particular transaction

Misleading Advertisement

Has the same meaning as a deceptive advertisement. An advertisement that has the capacity, tendency or effect of deceiving or misleading a consumer or guarantor.

MSRP

Manufacturer’s Suggested Retail Price (MSRP) or sticker price – means the price of a new vehicle that: is labelled and priced by the manufacturer and not by the dealer; is the price the manufacturer recommends that the dealer sell the new vehicle for; includes a list of all of accessories and items of optional equipment physically attached to the new vehicle and the individual price of each accessory or item of optional equipment; includes transportation charges for its delivery to the dealer, and includes any pre-delivery and inspection charges.

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National Advertisement

An advertisement for a new vehicle that has been designed or approved by a manufacturer and does not identify any local dealer.

National/Dealer Advertisement

Also called a co-op ad, means any advertisement designed or approved by a manufacturer in which a specific dealer or group of dealers is named, regardless of whether the manufacturer, a dealer, or a group of dealers pays for some or all of the cost of the advertisement.

New Vehicle

A vehicle that has not previously been registered and is new from the factory and has been driven very few miles.

Non-Interest Finance Charge

Any charge that a borrower is required to pay in connection with a credit agreement, other than: interest; a prepayment charge; a default charge; a charge for an optional service; a charge for an amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card obtained under the credit agreement.

Any of the following expenses, if the credit grantor incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement:

(i) fees to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interests in real or personal property,

(ii) fees for professional services required for the purpose of confirming the value, condition, conformity to law or location of property that serves as security for a credit agreement, if the borrower is given a report signed by the person providing the professional services and is free to give the report to third persons,

(iii) premiums for casualty insurance on the subject matter of a security interest, if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter, or

(iv) premiums for any insurance provided or paid for by the credit grantor in connection with a credit agreement if the insurance is optional.

In the case of a credit sale, any charge that would also be payable by a cash customer.

Non-Refundable

Terms and conditions under which monies paid to a dealer for deposits, down payments, partial payments, etc. may be non-refundable. Simply stating the transaction is non-refundable with no other terms attached may be a deceptive act.

Normal Status

If a vehicle does not have a status of rebuilt, salvage or altered, it is considered to have a normal status. "Normal" is simply a term used for the purposes of vehicle registration.

A normal status does not mean the vehicle has never been damaged or is in good mechanical condition. Vehicle status alone does not fully describe a vehicle's mechanical condition or damage history.

Not Suitable for Transportation

A vehicle that is in a condition which prevents it from being insured for road use. If a vehicle is sold as not suitable for transportation it cannot be driven off the dealer’s lot and must be towed.

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Odometer

An odometer is a device used for indicating distance traveled by an automobile or other vehicle. It may be electronic or mechanical.

Offer to Purchase

A formal legal agreement which offers a specified price for a specified vehicle. The offer may be firm (no conditions attached) or conditional (certain conditions apply).

Option to Purchase

Also known as Lease Purchase Option. It grants the lessee the right to purchase the vehicle during the term of the lease. The lessee can gain credit towards the purchase price with each lease payment.

Owner's Certificate of Insurance and Vehicle Licence

The top 2/3 of the document you get from your broker when you register, license and insure your vehicle. The signed certificate must be carried in your vehicle as proof that the vehicle is licensed and insured.

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