OMVIC Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the OMVIC exam with our comprehensive quiz. Test your knowledge with multiple-choice questions designed to emphasize key concepts in Ontario's motor vehicle industry regulations and responsibilities of dealership representatives. Get ready to ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Why should a dealer do a lien check on a vehicle that is being taken in on trade?

To ensure the vehicle has no mechanical issues
To protect the dealer and to ensure the dealer does not subsequently sell a vehicle with a lien
To verify the vehicle's mileage
To assess the vehicle's market value

The correct answer is: To protect the dealer and to ensure the dealer does not subsequently sell a vehicle with a lien

When a dealer is taking a vehicle in on trade, it means that they are accepting a vehicle from a customer and applying its value towards the purchase of a new vehicle. This transaction involves the transfer of ownership of the traded vehicle to the dealer. If the traded vehicle has a lien, it means that there is still money owed on the vehicle and the lienholder (usually a financial institution) has a legal claim on the vehicle. By doing a lien check, the dealer can ensure that there are no outstanding liens on the vehicle and that they are receiving clear ownership of the vehicle. If the dealer does not do a lien check and subsequently sells the vehicle to a new buyer, they could potentially face legal and financial consequences. Therefore, option B is the correct answer as it explains the importance of lien checks in protecting the dealer from potential legal and financial risks. Options A, C, and D are incorrect as they do not address the specific purpose of a lien check in this scenario.