In order to get a motor vehicle dealer or salesperson licence in Ontario, your application must demonstrate that you can follow the law and can act with honesty and integrity.
Acting with honesty and integrity requires a salesperson or dealership to act in a financially responsible manner. Dealers must conduct business in a financially responsible manner and the dealership must be financially stable.
The following are recommendations by OMVIC to meet the standard of financial responsibility:
- Hire a bookkeeper to collect, organise, and compile financial data
- Maintain a general ledger
- Conduct frequent bank reconciliations
- Prepare financial reports such as balance sheet and income statements
- Maintain records of all trades and sales (Requirement under MVDA)
- Establish a bank account in the name of the Dealership (Requirement under MVDA)
Although, a dealership may delegate tasks to other agents to assist with meeting the standard of financial responsibility, the dealership is ultimately responsible for the actions of those hired and must oversee their actions.
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