How to Get a Good Price on a Car in Canada
Negotiate a car price in Canada: compare all-in prices, check the dealer's licence, and read the contract before you sign — Ontario has no cooling-off period.
How to Start a Car Dealership in Canada
How to start a car dealership in Canada: OMVIC, AMVIC and BC VSA registration, premises, bonds, and what each province requires.
Applies in: CA
The short answer
You cannot legally sell cars to the public in Canada without registering as a dealer in your province — and the regulator, the fees, and the paperwork change at every provincial border. Ontario's regulator is OMVIC, Alberta's is AMVIC, and BC's is the Vehicle Sales Authority. Every province wants the same three things in different forms: a registered business with an approved lot, named people who pass background checks, and licensed salespeople. Start with the regulator in the province where the lot will sit, not with the inventory.
Step 1: Pick a province and a dealer class
Dealers come in classes, and the class decides the application. OMVIC registers general dealers (new and used, or used only), brokers who facilitate a trade without owning the vehicle, and wholesalers who trade only with other registered dealers. AMVIC's classes cover sales (new or used), wholesale, agent or broker, leasing, consignment, and repair. BC licenses by the same logic: if you sell or lease to retail consumers, you need a motor dealer licence, and selling more than five vehicles a year makes you a dealer automatically.
The class also decides the money behind the application. Alberta requires a $300,000 surety bond, irrevocable standby letter of credit, or cash for a consignment licence, and $50,000 for a wholesale licence. A new-car franchise adds another layer — the manufacturer's sales and service agreement — which OMVIC asks non-TADA members to provide for a new-and-used general dealer class.
Step 2: Register the business and get municipal approval
Register the business name or incorporate first — the regulator's application is filed in the business's legal name, and officers, directors, and shareholders are disclosed individually. Then get the lot approved. Alberta is blunt about the order: obtain written municipal approval or land-use approval before you apply for an AMVIC licence, because the application cannot be considered without it, and missing it causes significant delays or refusal.
Ontario is more flexible on timing: you are not required to have a business premises before submitting the OMVIC business application, and location information and supporting documents are only needed at the final stage of the review. That lets you start the application without paying rent while the review runs — but a premises is still required for every dealership registration, so line the lot up while the paperwork moves.
Step 3: Apply to the provincial regulator
Ontario (OMVIC). Complete the Business Application Form in OMVIC's online services portal and pay the $699 processing fee. OMVIC requires every new motor vehicle business applicant to provide a detailed business plan with the application, to confirm reasonable knowledge, financial stability, and responsibility under the Motor Vehicle Dealers Act. Individual applications are required for all officers, directors, owners, partners, the person in charge, signing authorities, and anyone who will trade on the dealership's behalf. Applicants must disclose past bankruptcies, and every applicant undergoes a Canada-wide criminal record search. Note that new account creation through the OMVIC portal has been unavailable at times — if you cannot create an account, contact the Registration Department at 1-800-943-6002.
Alberta (AMVIC). Apply through AMVIC Online: create an account, pick the licence class, and complete the whole online application, including payment, before exiting. Upload proof of municipal approval, a list of employed salespeople, photo ID, proof of eligibility to work in Canada if you are not a Canadian citizen, bankruptcy documents if applicable, police information checks, and proof of commercial general liability insurance. All documents must be uploaded and fees paid before the application is processed, and the process may take up to 30 days once all requirements are met.
British Columbia (VSA). Contact VSA Licensing at 604-575-7253 to obtain a dealer application. The VSA determines whether a dealer licence is needed, and the conditions include police information checks, credit checks, at least one licensed salesperson, and payment of annual licence fees.
Step 4: License your salespeople
The dealership's registration does not cover the people selling on the lot — each salesperson needs their own. In Alberta, salespeople register through AMVIC Online, pay a $100 registration fee and a $160 non-refundable course fee, complete the Salesperson Registration Course, and pass the final exam with 80% or higher, all within 30 days of submitting the application. They must also provide a police information check at their own expense, and their employer must complete the Salesperson Authorization section linking them to the dealership.
In Ontario, new dealer and salesperson applicants complete the Automotive Certification Course, a course in automotive law and ethics delivered through Georgian College's Automotive Business School of Canada. In BC, salespeople complete the VSA's Salesperson Licensing Course and apply online with two pieces of ID, a police information check, and a 2-by-2 photo. A sole proprietor in BC needs both a motor dealer licence and a salesperson licence.
Step 5: Open the lot and keep the registration current
Once registered, the obligations are ongoing. Post the dealer registration certificate where customers can see it. In Ontario, dealers remit $10 for each vehicle sold or leased under the transaction fee program, remitted annually with the registration renewal fee. File notices when officers or directors change, and when salespeople start or leave. Renewals are annual in Alberta and BC, and a salesperson licence in BC must be renewed at least 14 days before it expires.
Trading without registration is not a paperwork slip. Ontario sets a minimum $2,500 fine for acting as an unregistered dealer, and AMVIC warns that engaging in business without renewing a licence can bring enforcement action. If the business changes hands, the licence does not go with it — BC requires a complete new application when ownership transfers, and the licence is not for sale.
Figures not stated in this guide
Annual dealer licence fees for Ontario and BC were not verified on an official regulator page, so no annual fee is stated here — OMVIC's $699 is a processing fee for the business application, not the annual licence fee, and BC fees vary by vehicle type and volume sold. The cost of the OMVIC Automotive Certification Course was not verified on an official OMVIC page, so no course price is stated. Startup costs for inventory, lot, and floorplan financing vary too widely to state as a figure and are not included.
Related guides
- How to buy a franchise in Canada — if the dealership is a franchised new-car store, the franchise checks that come before the dealer application.
- How to start a retail store business in Canada — the retail side of the lot: leases, business licences, and the storefront rules that apply alongside dealer licensing.
- How to get a business number in Canada — the CRA business number behind the dealership's tax accounts.
- How to register for GST/HST in Canada — vehicle sales are taxable supplies, so GST/HST registration and the $30,000 threshold matter from the first sale.
- How to incorporate in Ontario — incorporating the dealership, with the Ontario-specific steps.
- How to start retail arbitrage in Canada — the contrast case: buying and reselling goods without a dealer licence, and where the line sits.
Starting a car dealership in Canada, in five steps
- Pick a province and a dealer classDealer licensing is provincial: Ontario uses OMVIC, Alberta uses AMVIC, BC uses the Vehicle Sales Authority, and each province licenses new, used, wholesale, broker, leasing, and consignment dealers differently.
- Register the business and get municipal approvalRegister the business name or corporation, then get written municipal or land-use approval for the lot — Alberta will not consider an application without it.
- Apply to the provincial regulatorFile the business application online with a detailed business plan, individual applications for officers, directors, and everyone who will trade, plus police checks and insurance.
- License your salespeopleEveryone who sells on the lot must hold their own salesperson registration — in Ontario, Alberta, and BC that means a certification course, an exam, and a background check.
- Open the lot and keep the registration currentPost the registration certificate where customers can see it, remit per-vehicle transaction fees where the province charges them, and renew on time — a lapsed registration means you cannot legally trade.
Dealer registration costs, by province
| OMVIC business application processing fee (Ontario) | $699 |
|---|---|
| AMVIC salesperson registration (Alberta) | $100 |
| AMVIC salesperson registration course (Alberta) | $160, non-refundable |
| AMVIC consignment licence surety bond (Alberta) | $300,000 |
| AMVIC wholesale licence surety bond (Alberta) | $50,000 |
Figures are from OMVIC and AMVIC pages as published. Annual dealer licence fees vary by class and, in BC, by vehicles sold — confirm the current fee schedule with the regulator in your province before budgeting.
Questions people ask
Do I need a licence to sell cars in Canada?
Yes, in the provinces that license dealers — which is most of them. In Ontario, anyone working as a motor vehicle dealer or salesperson must be registered with OMVIC before conducting any business; it is the law. In Alberta, automotive businesses and salespeople must hold an AMVIC licence. In BC, any person, partnership, sole proprietor, or company selling or leasing motor vehicles to retail consumers must be licensed as a motor dealer, and anyone selling more than five vehicles a year is automatically deemed a dealer.
How do I become a dealer in Ontario?
Apply to OMVIC through its online services portal. You complete the Business Application Form, pay the $699 processing fee, and provide a detailed business plan — OMVIC uses it to confirm you have reasonable knowledge, financial stability, and responsibility in the conduct of the business, as the Motor Vehicle Dealers Act requires. Individual applications are required for all officers, directors, owners, partners, the person in charge, signing authorities, and anyone who will trade on the dealership's behalf. You do not need a premises before you submit the application, but a premises is required before registration is completed.
What does Alberta require to open a dealership?
Apply for a business licence through AMVIC Online. First pick the licence class that matches what you will do — sales (new or used), wholesale, agent or broker, leasing, consignment, or repair. Then get written municipal approval from the town or city where you plan to operate; AMVIC says your application cannot be considered without it. Gather photo ID, police information checks, proof of commercial general liability insurance, and bankruptcy documents if you claimed bankruptcy in the last five years. Consignment applicants must deliver a $300,000 surety bond, letter of credit, or cash; wholesale applicants, $50,000. Once all requirements are met, the online application may take up to 30 days.
What do my salespeople need in each province?
Their own registration, separate from the dealership's. In Alberta, each salesperson pays a $100 registration fee and a $160 non-refundable course fee, must pass the Salesperson Registration Course final exam with 80% or higher, provide a police information check, and complete the whole application within 30 days of submitting it. In Ontario, new applicants complete the Automotive Certification Course in automotive law and ethics. In BC, salespeople complete the VSA's Salesperson Licensing Course and hold a licence that is renewed annually. A salesperson registration in one province does not automatically transfer to another.
How does BC's dealer licensing work?
The Vehicle Sales Authority of BC licenses motor dealers. To become one you contact VSA Licensing for an application; conditions include police information checks for dealership principals and salespeople, credit checks, a minimum of one licensed salesperson, licensing for everyone in contact with consumers, and payment of annual licence fees. Fees are based on the type of vehicles sold and the number sold, or the number of demonstration plates issued by ICBC, plus application fees and annual contributions to the Motor Dealer Customer Compensation Fund. Each location needs its own licence.
What are the ongoing obligations once the dealership is open?
Keep the registration current and visible — in Ontario the dealer registration certificate is posted where the public can see it, and a salesperson must show their certificate if a customer asks. In Ontario, dealers remit a $10 transaction fee for each vehicle sold or leased. Notify the regulator of changes of officers or directors, and of every salesperson's start and end of employment. Trading without registration is an offence: in Ontario the minimum fine for acting as an unregistered dealer is $2,500.
Sources
- Ontario Motor Vehicle Industry Council, How to Become a Dealer in Ontario — Ontario dealer registration requirement, $699 processing fee, business plan, and individual applications.
- Ontario Motor Vehicle Industry Council, Becoming a Dealer or Salesperson — OMVIC application steps, premises timing, and disclosure requirements.
- Alberta Motor Vehicle Industry Council, Apply for a new business licence — AMVIC licence classes, municipal approval, bond amounts, and 30-day processing.
- Alberta Motor Vehicle Industry Council, Apply for a new salesperson registration — AMVIC salesperson course and registration fees, 80% pass mark, and 30-day completion window.
- Vehicle Sales Authority of BC, How do I become a dealer? — BC dealer conditions, the five-vehicle rule, and fee basis.