Glossary | VSA My Self-Help

Advance Disposal Fee (tire levy)

Charge buyers must pay, per new tire, when they purchase a new or used vehicle.

Advertisement (ads):

Method of urging buyers to buy certain vehicles, products, or services. Ads may be written, spoken, or visual. Ads may be delivered directly or indirectly. Examples include: a price sticker on a vehicle a poster at a dealership a sales pitch made by a salesperson at promotional or marketing…

Aftermarket Warranty (aftermarket extended warranty):

A warranty provided by a third party. This warranty is for a used vehicle and has an added cost.

Air Conditioning Tax or Air Conditioning Recovery Fee:

A charge buyers must pay at the time they purchase a new vehicle. The charge allows the dealer to recover the tax paid to the federal government by the manufacturer. For the buyer, this charge is part of the price, not a tax.

Altered:

A status given to a vehicle that has been significantly modified after manufacturing. Altered is also a status given to homemade and other constructed vehicles. This status indicates the vehicle has been inspected and is structurally sound. The status is added after the vehicle passes inspection.

APR (Annual Percentage Rate):

An interest calculation for the amount of interest that adds up over a one-year period. BC law sets out a formula for the calculation.

APV9T Transfer/Tax Form:

Commonly called an ICBC Transfer Form.This form is used to transfer ownership of a motor vehicle from one person to another. The form includes: A description of the vehicle Required declarations The purchase price The names and addresses of the buyer and seller Signatures of the buyer and…

ARA (Automotive Retailers Association):

a non-profit group that serves as the voice of the BC automotive industry. The ARA offers education, representation, and member services. The ARA promotes a high standard of service by retailers. The ARA also promotes public safety and satisfaction.

As-is Where-is:

Sold in current state or condition, with all of its faults. This clause should not be part of a standard vehicle sales contract. Buyers have an implied right that vehicles purchased from a dealer can be used as transportation.

Balloon Payment:

A large, lump-sum amount due for payment at the end of a series of smaller periodic payments. This amount may be included in the payment schedule for a loan or lease.

BCAA (British Columbia Automobile Association):

A non-profit group that provides towing,insurance, and inspection services.

Bill of Sale:

A legal document (also called a contract or sale agreement). This document transfers ownership from the dealer to the buyer. The dealer prepares the document. The document includes the date, location, description of the vehicle, and the price.

Black Book:

A source for new and used vehicle pricing and information.

Burden or Onus of Proof:

Duty to show a fact is true. For deceptive acts or practices, this duty lies with the dealer. The duty is to show they did not use a spoken, written, or visual statement or action to fool or mislead a buyer. This special duty is known as a reverse onus.

Buyer Beware (similar to as-is where-is):

An idea that a seller is not responsible for the quality of a product. This concept does not apply to the sale of vehicles.

CAMVAP (Canadian Motor Vehicle Arbitration Plan):

A program that helps buyers resolve disputes with most manufacturers. The program helps with disputes about new vehicle defects or warranties through mediation. New vehicle means no more than four years old. A ruling in favor of a buyer may mean repairs, money, replacement, or buy-back by the…

Canadian Import:

A vehicle previously registered in another province.

CARFAX:

A source for vehicle history reports. The reports are done by VIN (Vehicle Identification Number) for a fee.

Consignment Sales:

where the buyer leaves their vehicle with a dealer to sell. The dealer acts as the buyer’s agent in the sale. BC law requires a dealer get approval to do consignment sales.

Consumer Transaction:

where an individual buyer purchases a vehicle from a dealer for personal, family or household use.

Cooling-off Period:

One clear day after entering a lease. During this time, you may cancel the lease without penalty or fee. Before entering a lease, BC law requires a dealer: notify a buyer in writing about the cooling-off period keep the vehicle during the cooling-off period only allow the buyer to leave with…

Curber:

A private seller in the business of selling vehicles without a license. A person who sells their own car is a private seller. This person is not a curber because selling cars is not their business. Unlike licensed dealers, many curbers do not disclose the history of the vehicle. For example,…

Damage(s):

Harm to a vehicle that require $2,000 or more to repair.This harm is not limited to damages from accidents. The $2,000 amount is the cumulative cost of repairs of all incidents.

Dealer Advertisement:

Any advertisment by a vehicle dealer or group of dealers.

Dealer Cost:

The actual amount a dealer must pay a manufacturer or supplier for a specific vehicle. This amount is the value of that vehicle minus certain amounts. These amounts include discounts, volume rebates, or other reductions from the manufacturer or supplier. These amounts must not include any reduction…

Dealer Fees:

Documentation, administration, and other negotiable processing charges added by dealers to the price of a vehicle. Non-negotiable charges should be included in the advertised “total price” of the vehicle. Non-negotiable charges must not come as a surprise to the buyer. They must be disclosed before…

Dealer Inventory:

A dealer’s on-hand stock of new or used vehicles that the dealer has the authority to sell.

Dealer Warranty:

A warranty on a used vehicle. This warranty is usually limited to a specific period of time and distance travelled. This warranty may limit coverage to powertrain only or to reduced labour charges.

Dealership Mechanical Inspection:

A vehicle checkup done by dealership staff. These checkups range from a limited to comprehensive review of the vehicle. The results are provided to the buyer. If a report is not provided, buyers should request a copy.

Declarations:

Disclosure of vehicle details required by BC law. These details include whether the vehicle: Is suitable for transportation Has ever been used as a taxi, police, emergency, lease, rental, or organized racing vehicle Has ever been registered outside BC Has sustained damages requiring repairs…

Demo Vehicle:

A vehicle acquired new and then used by a dealer during normal business. If the demo vehicle has never been registered to a new owner, it is still considered a new vehicle. Use as a demo must be disclosed to a buyer.

Deposit Agreement:

The terms and conditions agreed upon for a payment of funds. The terms and conditions should include the purpose of the deposit. They should also include whether it is, or will become, a down payment or partial payment for a vehicle.

Deposit:

A payment taken as part of a sale or lease transaction. This payment may be for a variety of services. These services may include holding, locating, or bringing in a specific vehicle. They may also include arranging financing for a vehicle. The payment may be refundable or non-refundable based on…

Disability Insurance:

Optional coverage of loan payments in the event of illness or injury that results in an inability to pay. The amount of coverage varies from plan to plan. BC law gives a buyer the option of obtaining this coverage from an insurer of their choice.

Disclose:

To tell a buyer anything that would be “material” to their decision to buy or not buy a vehicle. Disclose is means on top of the specific declarations that must be made for every vehicle transaction.

Dismantle Only:

A status given to a vehicle that cannot be repaired and driven. This status can be given by any insurance company.

Distance Sales:

A transaction completed without the buyer seeing or inspecting the vehicle. Examples of a distance sale include buying a vehicle by phone or over the internet. BC law requires these sales to follow the same rules as an in-person sale. For example, if prices vary for the same vehicle in different…

Documentation Fee:

A negotiable charge for services. These services include administration, vehicle registration, lien checks, and vehicle history reports. Charges of this type must be included in the advertised total price of a vehicle. If not, they must be clearly disclosed as additional.

Down Payment:

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

Estimated Residual Value:

The amount expected to be owed at the end of a lease. This amount is the approximate fair market worth of the vehicle at the end of the term.

Etching Theft Insurance:

Optional coverage to pay for identification and recovery in the event a vehicle is stolen vehicle. BC law requires that buyers be told this coverage is optional. If not, it must be included in the advertised "total price".

Extended Warranty:

a warranty offered as a supplement to extend a manufacturer's warranty to increase its coverage or length. This supplement can be on a new vehicle or on a qualifying used vehicle.

Federal Vehicle Inspection:

A vehicle checkup that is part of a federal program. This program is for the import of certain vehicles from the USA.

Feedback

Finance Agreement:

The terms and conditions for a loan of money to pay for a vehicle.

Finance or Finance Placement Fee:

A negotiable charge by some dealers for a financing service. This service is to secure a vehicle loan with a bank or financing company. This charge must be disclosed prior to the signing of the finance agreement. This charge must be included in the APR (Annual Percentage Rate) calculation.

Financing:

A loan to pay a dealer the full amount of a vehicle purchase. The loan typically includes a down payment and a series of payments at an agreed upon interest rate. The buyer owns the vehicle, and the loan provider holds a lien.

Flood Damaged Vehicle:

A vehicle that has been submerged underwater due to severe weather. These vehicles are Dismantle Only. Harm from submersion is usually internal and may be hard to spot. A vehicle history report can often determine if a vehicle is from a flood affected area.

Foreign Import:

A vehicle previously registered outside Canada, usually in the USA.

Form 1 (Vehicle Import Form):

A document provided by the Canadian Border Services Agency (CBSA). This form is completed for the import of a vehicle into Canada. A Canadian mailing address is required. The inspection centre stamps the document once the vehicle passes inspection. The stamped document must be presented to the…

Freedom of Information and Protection of Privacy Act (FIPPA):

A BC law regarding personal data gathered and held by public bodies. This law aims to hold public bodies accountable for the security of that data. FIPPA gives the public the right to access government held data. FIPPA also bans the unlawful collection, use, and disclosure of personal data by…

Fuel Consumption Ratings:

A ranking of the rate fuel is used. This ranking is relative to the distance traveled. This ranking often does not represent a vehicle's true fuel consumption. The ranking is set by a standard test method called the Federal Test Procedure. The Fuel Consumption Guide offers a comparison of ratings…

Fuel Consumption:

The rate fuel is used by a vehicle relative to the distance it travels. The rate is affected by many factors. These factors include terrain, the driver, and the load the vehicle is carrying.

Grace Period:

The time during which interest adds up on a vehicle loan. The buyer must only pay this added interest if the loan conditions are not met. For example, if the buyer fails to make a payment, the buyer must pay this added interest. the agreement, for example, by defaulting on payments.

GVWR (Gross Vehicle Weight Rating):

The maximum allowable total weight of a motor vehicle or trailer when loaded. This weight includes the vehicle itself plus fuel, passengers, cargo, and trailer.

ICBC (Insurance Corporation of British Columbia):

Government entity that provides universal auto insurance to BC motorists. It is also responsible for driver licensing, and vehicle licensing and registration.

ICBC Transfer Form:

See APV9T Transfer/Tax Form

ICBC Vehicle Damage Inquiry:

Commonly called a vehicle history report. A report from Insurance Corporation of British Columbia (ICBC) detailing claims filed against the Vehicle Identification Number (VIN). This report details only claims filed in BC through ICBC. The report will also show the status of the vehicle. For…

ICBC Vehicle Status Inquiry:

A limited, free ICBC report that shows if a vehicle is normal, rebuild or rebuilt, salvage, or altered.

Implied Warranty:

An unspoken promise about every vehicle sold by a dealer. This promise is that the vehicle may be used for transportation. The only exception to this promise if the vehicle is sold for parts only. A buyer can waive this promise.

Independent Mechanical Inspection:

A checkup on the mechanical function of a vehicle by a qualified mechanic. This inspection is more detailed than a Private Vehicle Inspection (PVI).

Insurance:

Coverage provided for payments related to vehicle damage and loss or financing. There are many types of coverage associated with a vehicle purchase. Each type has conditions and limits. See: vehicle insurance, disability insurance, life insurance, and etching theft insurance.

Interest-free Period:

The time during which no interest adds up on a vehicle loan. A dealer is not entitled to any interest for this period. This means no interest under any circumstances, even if a buyer misses payment(s).

Internet Sales:

see distance sales.

Lease end Inspections:

A vehicle checkup at the end of a lease to assess wear and tear. This checkup is different than an independent mechanical inspection or Private Vehicle Inspection (PVI). The cost and location for this checkup should be in the terms of the lease or lease agreement.

Lease or Lease Agreement:

A written document setting out the conditions for the use of a vehicle. The owner of the vehicle is called the lessor. The user of the vehicle is called the lessee. The lessor may be a dealer, manufacturer, or lease company. The document outlines their legal rights and obligations including the…

Lease Purchase Option:

A condition in a lease or lease agreement. This condition grants the lessee the right to purchase the vehicle during the term of a lease. The lessee can gain credit towards the purchase price with each lease payment.

Lemon:

A new vehicle that has major problems affecting its safety, use, or value. All 50 states in the US have lemon laws. These laws set out when a state marks a vehicle as a lemon. A vehicle history report often will tell if a car has been branded a lemon in the US. Some provinces require the branding…

Lessee:

A person who uses (rents) a vehicle owned by someone else (the lessor) under a lease or lease agreement. The lessee does not own the vehicle during the term but has the right to use the vehicle. Vehicle ownership is transferred only at time of a sale.

Lessor:

The owner of a vehicle who allows its use by another under a lease or lease agreement. The lessor may be a dealer, manufacturer, or lease company. The lessor owns the vehicle until the lessee buys it out. Before selling to the lessee, the lessor must have the vehicle inspected.

Lien Registration Fee:

A charge for documenting a lien with a record keeping company. In BC, this charge is for recording the lien with the Personal Property Security Act (PPSA). If the amount is large, it may be a loan or finance placement fee, not a lien registration fee.

Lien:

A legal claim to property that secures the payment of a debt.

Life Insurance:

Optional coverage of loan payments in the event of death. Coverage varies from plan to plan.

Limited Warranty:

A warranty provided by a dealer. This warranty is usually a discounted rate for parts and labour. This warranty usually only applies if the vehicle is repaired at the dealership.

Manufacturer’s Warranty:

A warranty provided by the manufacturer of a new vehicle. This warranty is provided at no additional cost. The warranty is for a specific length of time and/or mileage. The warranty is usually transferable to other buyers. Any transfer must be within the allowed time or mileage.

Material or Material Fact:

Important information that impacts a buyer’s decision to buy a vehicle. This includes information the seller learned about the vehicle. It also includes something an experienced seller ought to have known.

Misleading Advertisement:

Advertising that is deceptive or gives the wrong idea or impression.

MSRP (Manufacturer’s Suggested Retail Price):

The sticker price on a new vehicle. This sticker: Is labelled and priced by the manufacturer and not by the dealer Is the price the manufacturer recommends for the sale of the vehicle by the dealer Includes a list of all of accessories and optional equipment and the price for each Includes…

National / Dealer Advertisement:

Also called a co-op ad. These ads name a specific dealer or group of dealers. The dealer(s) are named regardless of whether the manufacturer or the dealer(s) pay for some or all of the cost of the ads.

National Advertisement:

An advertisement for a new vehicle. These ads are designed or approved by a manufacturer. These ads do not identify any local dealer.

NCDA (New Car Dealers Association of BC):

A group that speaks on behalf of BC’s new car industry. They may speak to the public, media, and government. The group focuses on legal, environmental, and consumer issues.

New Vehicle:

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

Non-Interest Finance Charge:

A fee that a borrower is required to pay in relation to a vehicle loan. Examples include: Fees to a third party for registration and information about ownership interests Fees for professional inspections and reports regarding a vehicle Insurance premiums This fee does not include:…

Non-refundable:

Payment of money that will not be returned. These payments include deposits, down payments and partial payments. The terms of a non-refundable payment must be clear.

Normal:

Status given to a vehicle that is not rebuild or rebuilt, salvage, or altered. "Normal" is used for vehicle registration. A normal status does not mean the vehicle has never been damaged or is in good mechanical condition. Status alone does not fully describe a vehicle's mechanical condition or…

Not Suitable for Transportation:

A status given to a vehicle that is not insurable for road use.

Odometer Replacement:

Repairing or substituting an odometer. The repaired or substituted device must include the previous distance traveled. Repairs or substitutions must be disclosed. Disclosure may be on a sales order, purchase agreement, or repair record.

Odometer Tampering:

Disconnecting, altering, or replacing an odometer. Such actions are against the criminal law.

Odometer:

A device used for indicating distance traveled by a vehicle. This device may be electronic or mechanical.

Offer to Purchase:

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

One Clear Day:

A legal term for time based on business days (not a 24-hour day). Business days do not include Sundays, provincial statutory holidays, and days the dealership is normally closed.

Option to Purchase:

See Lease Purchase Option.

Owner’s Certificate of Insurance and Vehicle Registration:

The top portion of an insurance document. This document is given to a buyer by an insurance broker when registering, licensing, and insuring the vehicle. The top portion must carried in the vehicle as proof that the vehicle is licensed and insured.

Partial Payment:

Money paid as part of an agreement to purchase a specific vehicle. This money gives the buyer an interest in the vehicle once all the terms and conditions are known.

Parts and Labour Warranty:

Sometimes called a limited warranty. A discounted rate for parts and labour provided by a dealer to reduce the cost of future repairs. This warranty usually only applies if the vehicle is repaired at the dealership.

Parts Only:

A vehicle which does not meet the safety requirements of the Motor Vehicle Act and cannot be driven on the highways.

PDI (Pre-Delivery Inspection):

A new vehicle checkup by a dealer upon receipt from the manufacturer.

PIPA (Personal Information Protection Act):

A BC law regarding personal data gathered and held by private bodies. The purpose of PIPA is to protect a person’s right to privacy over their personal data. PIPA sets out the rules for private bodies to collect, use, and give out this data. Note: Freedom of Information and Protection of Privacy…

PPSA (Personal Property Security Act):

A BC law regarding liens against, or other rights to personal property. PPSA may also mean PPSA.ca. PPSA.ca is a private company where a person can register liens in any jurisdiction in Canada.

Price Benefit or Advantage:

An offer of something to encourage a buyer to purchase a vehicle. The offer is a price benefit or advantage only if it results in an actual savings for the buyer.

Private Sale:

The sale of a personal vehicle by one individual to another individual.

Pro-Pac or Protection Package:

An optional, ongoing maintenance service. This service includes professional interior and exterior cosmetic maintenance of a vehicle. This service is offered for an extra price. If mandatory or required, the cost must be included in the advertised total price.

Provincial Safety Inspection:

The common name for a vehicle checkup. This checkup is done by a designated inspection facility. The checkup determines if the vehicle meets legal standards. For example, these standards apply to brakes, lights, horn, and steering.

Purchase Agreement:

A legal document to transfer the ownership of a vehicle to a buyer. This document is prepared by the dealer. It identifies the dealer and buyer and describes the vehicle. It also records the date and location of the sale and the price.

PVI (Private Vehicle Inspection):

The official name for a vehicle checkup. This checkup is done by a designated inspection facility. The checkup determines if the vehicle meets legal standards. For example, these standards apply to brakes, lights, horn, and steering.

Rebuild or Rebuilt:

A status given to a vehicle that is repaired and certified for use on the highway. These vehicles are repaired after write-off by an insurance company. The vehicle must pass a structural inspection and a Private Vehicle Inspection (PVI). This status is not for the simple repair or replacement of a…

Recall:

A notice to vehicle owners about a manufacturing defect. These defects are those that could affect the safe operation of the vehicle. The work required to repair the defect is completed at no charge to the vehicle owner.

Reconditioned:

A status given to a vehicle that has been repaired or improved in some way. Reconditioned is less complex than Rebuild or Rebuilt.

Refundable:

Payment of money that will be returned. These payments include deposits, down payments and partial payments. The terms of a refundable payment must be clear.

Residual Value:

The amount owed at the end of a lease. This amount is the approximate fair market worth of the vehicle at the end of the term.

Safety Inspection:

A vehicle checkup done by a dealer or mechanic. This checkup provides an opinion about whether a vehicle meets minimum legal requirements. Not all safety inspections meet the same standards or test the same things as the Private Vehicle Inspection (PVI). A vehicle that passes a safety inspection…

Sales Agreement:

See Purchase Agreement.

Salesperson Advertisement:

An advertisement placed by a salesperson regardless of who pays. The dealer number must appear in the advertisement.

Salvage:

Status given to a vehicle that has been written off as a "total loss" by an insurance company. This status is for a vehicle that is unsafe to drive but is repairable and can be driven after re-inspection. Once repaired, the vehicle must pass a structural inspection. The vehicle must also pass a…

Security Deposit:

Payment of money when a vehicle is delivered. This payment is to cover payments on a lease that may be missed or damages to the vehicle. The deposit is refunded at the end of the lease if there are no missed payments or damages. The deposit may be applied to a lease buy-out.

Serial Number:

A method of identifying a specific vehicle. This number is usually the Vehicle Identification Number (VIN). For some vehicles like recreational vehicles, this may be an extra unique number.

Stock Number:

A dealer’s method of identifying an individual vehicle in its inventory.

Structural Integrity Assessment (SIA):

The second of two tests required for rebuild or rebuilt status. The first test is the Private Vehicle Inspection (PVI). The SIA tests the overall build of the vehicle. The build includes the frame and alignment. The build also includes other structural safety components such as doors and welds. The…

Structural Integrity Assessment Report:

A document recording the results of a Structural Integrity Assessment (SIA).

Tax advantage:

Reduction of the value of a vehicle for tax purposes. The value is reduced by the value of any trade-in.

Tax or Taxes:

A charge or other levy imposed by the Federal or Provincial Government on the sale of a vehicle. These include provincial sales tax (PST), federal sales tax (GST), and the tire levy. PST rates vary by province from 7% to 12%. The taxable amount may be reduced by a tax advantage.

Technical Service Bulletin:

An advisory issued by a manufacturer. Dealer service departments use the advisory for recurring problems. The advisory typically includes illustrated instructions for repair. Further, it includes a list of the parts needed for the repairs. The advisory outlines warranty status and the labor charge.

Term:

The length of a lease or loan, generally expressed in months.

Vehicle Sales Authority of BC - My Self-Help Terms of Use The Vehicle Sales Authority of British Columbia ("the VSA") provides the My Self-Help guide ("the Guide") as an online tool that will be a starting point for consumers who have issues following an interaction with a VSA licensee. The…

Third Party Warranty:

A warranty from an independent insurance company. The warranty is to cover the cost of any future repairs. The warranty may be included or purchased with the vehicle. Coverage for repairs for existing problems are generally excluded.

Tire Levy (advance disposal fee):

A charge consumers must pay. This charge is for each new tire, at the time of purchase of a new or used vehicle.

Total Loss:

A status given to a vehicle that is not economical to repair.

Total Price:

The full amount payable for a vehicle.For new vehicles, the full amount includes: The cost of accessories or optional equipment physically attached to the vehicle Transportation charges Pre-delivery inspection services Non-negotiable dealer fees and options This amount does not…

Towing Capacity:

The maximum allowable weight a vehicle can pull. Exceeding this limit may void warranties and create unsafe driving conditions.

Trade-in:

Buyer’s current vehicle. This vehicle is sold to the dealer for an agreed upon price. This sale may be part of either a new or a used vehicle purchase agreement.

Transfer Fee:

A charge paid for transferring the ownership of the vehicle to the buyer.

Transfer Form:

See APV9T.

Unlicensed Dealer (also called Curber):

An individual or business selling vehicles for profit. These sellers often pose as a private seller. A private seller means someone selling their own vehicle.

Unsafe Vehicle:

A status given to a vehicle that does not meet minimum safety standards. For example, these standards are for brakes, lights, horn, and steering.

Used Vehicle:

A status given to a vehicle that has previously been registered to one or more individuals. This status applies regardless of the mileage.

Vehicle History Report:

A document detailing information about a vehicle. The report is generated from the Vehicle Identification Number (VIN). The details shown in the report depend on the type of report selected. For example, the report may show other provinces or countries of registration. The report may show liens.…

Vehicle Identification Number (VIN):

17 characters assigned to every motor vehicle by its manufacturer. These characters differentiate it from other motor vehicles.

Vehicle Insurance:

Coverage required by BC law and provided through ICBC.

Vehicle Sales Authority of BC

My Self-Help Resolution Starts Here Overview If you purchased or leased a vehicle from a licensed dealer in BC, and have questions or issues, My Self-Help is the best place to start. My Self-Help can help you to learn more and understand your legal rights. It can also help you understand…

Vehicle:

A motor vehicle as defined by BC law. Vehicle includes some non-motorized trailers.

Warranty:

Promises made about a vehicle.These promises include the vehicle condition and what happens if there are problems.There are many types of warranties including: After Market Manufacturer Extended Limited Parts and Labour Implied) Each type of warranty has specific kinds of promises.

Worksheet:

A rough draft of a purchase agreement. A worksheet gives the buyer a general idea of the price of the vehicle. It includes the cost of options and applicable taxes and fees. The worksheet will also show the value of any trade- in. Buyers are often asked to sign a worksheet as a show of good faith…

Write-Off:

Status given to a vehicle that is written off as a "total loss" by an insurance company.