Changes to AMVIC’s vehicle sales levy, business licensing fee, as well as the rules around the Compensation Fund means AMVIC can better help consumers.
AMVIC is funded through business licensing fees, salesperson registration fees and the AMVIC vehicle sales levy. As of April 1, 2024 the AMVIC sales levy per vehicle sold or leased will increase to $10, from $6.25 per vehicle. The AMVIC vehicle sales levy is collected at the time of purchase or lease and is included in the bill of sale.
Industry members will see an increase to a single sales licence (for single sales, leasing and consignment licence classes), going up to $250; this yearly cost is paid by the business directly to AMVIC. The vehicle sales levy has not increased in 13 years and the single sales business licence fee has not increased in 19 years.
How AMVIC’s increased funding helps consumers
With increased funding coming from the extra $3.75 per vehicle sold or leased and increase to the single sales business fee, AMVIC will be able to boost education and compliance efforts. There will be more industry standards officers hired to inspect the nearly 8,000 automotive businesses in Alberta and additional consumer services officers to deal with the recent significant increase in consumer complaints. A portion of the increased funding will be directed to the Compensation Fund, education and communication activities to help improve awareness.
Compensation Fund improvements
AMVIC maintains and administers a Compensation Fund, which compensates consumers in the event they suffer a financial loss as a result of dealing with an AMVIC-licensed business that is no longer operating. For transactions dated between April 1, 2024 and Dec. 31, 2024, the maximum payout per Compensation Fund claim increases to $30,000 from $25,000. Beginning April 1, 2024, the $300,000 cap per failed business will be completely removed. Not only does this allow for more timely payouts of eligible claims but also recognizes the increase in the average vehicle value.
All-in advertised price remains the law
Remember to take a copy of the ad with you when you go shopping to ensure the all-in advertised price is followed. The advertised price of a vehicle must include all fees and charges the seller intends to charge, except for GST and any costs actually associated with financing.
Additional information
AMVIC has a wealth of consumer information and free resources on amvic.org, including:
- Further details on the April 1, 2024 funding changes;
- Free, easily to use consumer guides (three are available in 10 different languages);
- Information on how to file a complaint; and
- Information on how to apply to the Compensation Fund if you have suffered an eligible financial loss in relation to an automotive business that is no longer operating.