Compliance

Selling a vehicle as-is in Ontario: the exact wording OMVIC requires

By Naz Mitchell · Founder, Lot Jacket8 min read

Ontario dealers can sell a used vehicle as-is, but not casually: Regulation 333/08 prescribes the exact wording of the as-is statement, requires it in bold with a bold heading, requires the purchaser to initial it, and — the rule dealers most often break — bars an as-is sale to a non-dealer purchaser if a current safety standards certificate has already been issued for that vehicle. Get the certificate first and you have removed your own ability to sell the car as-is. Here's the wording, the conditions, and where as-is sales go wrong on small lots.

“As-is” is the most misunderstood two words on an Ontario lot. Dealers treat it as a shield — sell it rough, write “as-is” on the contract, walk away. Ontario treats it as a disclosure with prescribed wording, prescribed formatting, a required initial, and one hard precondition that catches dealers out constantly: if the car already has a current safety standards certificate, you have lost the right to sell it as-is at retail.

The short version

The as-is statement is prescribed wording under section 40(6) of Regulation 333/08 — reproduce it, don't paraphrase it. It must appear in 12-point bold under a 14-point bold heading, with a space for the purchaser to initial. And under section 40(3), a dealer cannot sell a used vehicle as-is to a non-dealer purchaser if a current safety standards certificate has been issued for it.

The exact wording

OMVIC's As-Is Sales Guideline sets out the statement required by section 40(6) of Regulation 333/08:

The motor vehicle sold under this contract is being sold “as-is” and is not represented as being in road worthy condition, mechanically sound or maintained at any guaranteed level of quality. The vehicle may not be fit for use as a means of transportation and may require substantial repairs at the purchaser's expense. It may not be possible to register the vehicle to be driven in its current condition.

Three sentences, all of them load-bearing. The second warns the car may not be usable as transportation. The third warns it may not even be registrable. Dealers who trim the statement to the first sentence — the common shortcut — have dropped the two warnings that most protect them in a dispute.

Formatting is part of the requirement

The guideline points to section 40 of the regulation for how the statement has to appear on the contract: the statement in 12-point bold, under a heading in 14-point bold, with a space where the purchaser initials the statement.

This is not fussiness for its own sake. The whole legal weight of an as-is sale rests on the buyer having actually seen and acknowledged the warning. A statement the buyer can prove they never initialled is a statement that may not do the job you needed it to do. If your bill of sale template puts the as-is clause in the same grey small print as the rest of the terms, the template is the problem.

The safety certificate trap

This is the rule worth reading twice. OMVIC's guideline quotes section 40(3):

No registered motor vehicle dealer shall sell a used motor vehicle on an as-is basis to a purchaser who is not a registered motor vehicle dealer if a current safety standards certificate under the Highway Traffic Act has been issued for the vehicle.

Read that as an operational sequencing rule, because that's what it is. The moment a current certificate exists for the car, the as-is route to a retail buyer is closed. And an Ontario safety standards certificate is valid for 36 calendar days after the inspection — so “current” has a short, specific life.

Where lots get burned: a car goes out for safety speculatively, passes, then the retail deal falls apart and the next buyer wants it cheap and as-is. Within that 36-day window, that sale isn't available to a non-dealer purchaser. The decision to certify has to be made before the car goes to the shop, not after.

Note the certificate is also not a quality promise you're making. Ontario states plainly that a certificate confirms the vehicle met the minimum safety standards on the date it was issued, and that it is not a warranty or guarantee of the vehicle's condition.

As-is in your advertising

The disclosure doesn't start at the contract. OMVIC's position is that the same as-is language should be used in dealers' advertising, and the guideline states it is not compliant for a dealer to indicate a vehicle is being sold as-is without providing the required disclosures under section 4 of the Code of Ethics — which requires registrants to be clear and truthful in describing a vehicle's features. If you offer certification as an add-on, the guideline requires disclosing what it costs.

That ties as-is directly into Ontario's all-in price advertising rules — an as-is listing that quietly assumes a certification fee on top is two problems, not one.

What belongs in the file

An as-is deal is a deal that gets second-guessed later, so the file has to carry its own proof. That means the contract with the prescribed statement and the buyer's initials on it, the ad as it ran, any certification quote you disclosed, and the UVIP and disclosures that went with the car. Six months on, “we told them it was as-is” is worth exactly as much as the initialled page you can produce.

That's the argument for keeping every as-is sale in one audit-ready deal file rather than across a signed PDF in email and a paper copy in a drawer. When an OMVIC inspector pulls an as-is deal, they are checking the statement, the formatting, and the initials — three things that live on one page you either have or don't.

How Lot Jacket handles it

Lot Jacket keeps the prescribed as-is statement in the bill of sale itself — correct wording, correct emphasis, with the purchaser's initial captured at signing rather than hoped for afterward — and files the signed copy into the car's jacket with the disclosures and the UVIP. Every as-is deal ends up looking the same, which is the point: consistency is what survives a complaint.

Book a free 15-minute demo and we'll run an as-is deal end to end.

This guide is general information for Ontario used-car dealers, not legal or compliance advice. OMVIC requirements can change — always confirm the current rules with OMVIC or a qualified advisor.

Sources

  1. As-Is Sales Guideline OMVIC
  2. Safety standards certificate Government of Ontario
  3. O. Reg. 333/08: GENERAL, under Motor Vehicle Dealers Act, 2002 Government of Ontario
  4. Motor Vehicle Dealers Act, 2002, S.O. 2002, c. 30, Sched. B Government of Ontario

Frequently asked questions

What is the required as-is statement in Ontario?

OMVIC's As-Is Sales Guideline sets out the wording required by section 40(6) of Regulation 333/08: "The motor vehicle sold under this contract is being sold 'as-is' and is not represented as being in road worthy condition, mechanically sound or maintained at any guaranteed level of quality. The vehicle may not be fit for use as a means of transportation and may require substantial repairs at the purchaser's expense. It may not be possible to register the vehicle to be driven in its current condition." This is prescribed wording, not a template to paraphrase.

Does the buyer have to initial the as-is statement?

Yes. OMVIC's guideline points to section 40 of Regulation 333/08, which requires the contract to include a space where the purchaser initials the statement. The guideline also specifies formatting: the statement in 12-point bold font, under a heading in 14-point bold. An as-is clause buried in six-point boilerplate does not meet the requirement.

Can I sell a car as-is if it already has a safety standards certificate?

No. OMVIC's guideline quotes section 40(3) of Regulation 333/08: no registered motor vehicle dealer shall sell a used motor vehicle on an as-is basis to a purchaser who is not a registered motor vehicle dealer if a current safety standards certificate under the Highway Traffic Act has been issued for the vehicle. Certifying the vehicle first removes the as-is option for a retail sale. Decide before you send it for safety.

How long is an Ontario safety standards certificate valid?

A safety standards certificate is valid for 36 calendar days after the inspection, according to the Government of Ontario. It confirms the vehicle met minimum safety standards on the date it was issued — it is explicitly not a warranty or guarantee of the vehicle's condition. Because it expires so quickly, the timing of when you certify a car is a real operational decision, not a formality.

Do as-is rules apply to advertising too?

OMVIC's position is that the same language disclosing a vehicle's as-is status should also be used in dealers' advertising. Section 4(1) of the Code of Ethics requires registrants to be clear and truthful in describing the features of a vehicle, and OMVIC's guideline states it is not compliant for a dealer to indicate a vehicle is being sold as-is without providing the required disclosures. If you also offer certification as an add-on service, the guideline requires disclosing that cost.

Go deeper

  1. The Bill of Sale, with the as-is statement built in
  2. How Lot Jacket keeps files audit-ready
  3. The OMVIC inspection, explained

This guide is general information for Ontario used-car dealers, not legal or compliance advice. OMVIC requirements can change — always confirm the current rules with OMVIC or a qualified advisor.