OMVIC Practice Test

What action must a dealer take if a vehicle has a salvage title?

1. Sell it without any disclosures

2. Offer a warranty regardless of the title

3. Clearly inform the buyer about the title

4. Remove the vehicle from sale

The correct answer is: Clearly inform the buyer about the title

When a vehicle has a salvage title, it indicates that the vehicle has previously been declared a total loss by an insurance company and has been significantly damaged, typically from an accident, flood, or other incidents. As a result, it is crucial for the dealer to be transparent about the vehicle's history to protect consumers. Notifying the buyer about the salvage title allows them to make an informed decision regarding the purchase. It ensures that potential buyers understand any risks and implications associated with owning a vehicle that has been classified this way, such as potential issues with repairs, insurance rates, and resale value. Clear communication about the title status is part of the dealer's obligation under the law to conduct fair business practices, fostering trust and compliance with consumer protection regulations. This requirement is fundamental in ensuring that consumers are not misled regarding the vehicle's condition and history.