OMVIC Trust Accounts: Where Your Deposit Goes Before You Drive Home

Photo: American Honda (Honda US Newsroom). 2026 Honda Ridgeline.

OMVIC's trust-account framework exists to protect one specific risk: a dealer taking your deposit or large payment and then failing to deliver the vehicle, deliver a defective vehicle, or use your money for something other than your purchase. The trust-account rules are the protection.

For a GTA Honda buyer, the framework is straightforward — deposits over $10,000 and all consignment money must go into a dedicated trust account at a Canadian financial institution, separate from the dealer's operating funds. The dealer can't use your money as collateral or working capital.

What OMVIC's trust-account rules require

• The trust account must be at a Canadian financial institution — a bank, loan or trust corporation, credit union, or authorized foreign bank under Section 2 of the Bank Act
• The account name must include 'Motor Vehicle Dealers Act, 2002 trust account' and the dealer's registered name
• Trust-account money must be kept separate from the dealer's general operating funds
• Trust-account money can never be used as collateral by the dealer
• The dealer must file the trust-account details with OMVIC

When a trust account is required

• Any deposit over $10,000 from a vehicle purchaser — the dealer must hold this in trust
• All money received by the dealer from a consignment sale when the consignor is an individual who bought the vehicle for personal or family use
• All money received from a buyer during a consignment sale — must be deposited into trust and only released to the consignor per the consignment agreement

Photo: American Honda (Honda US Newsroom). 2026 Honda Ridgeline.

How this protects you as a buyer

Your deposit money is held separately from the dealer's operating funds. If the dealer has financial trouble, your deposit isn't at risk of being seized by the dealer's creditors.

Your deposit can only be released to the dealer when the conditions of the contract are met (vehicle delivered, financing arranged, etc.). The dealer can't just keep the deposit if the deal falls through.

If the dealer goes bankrupt or closes before delivering your vehicle, the trust account is preserved for your benefit. You can claim the funds from the trust account directly.

OMVIC inspects dealer trust accounts as part of its compliance program. The trust-account framework is verified during routine inspections.

The consignment-specific rules

If you're buying a consigned vehicle (a vehicle the dealer is selling on behalf of someone else), all the buyer's money must go into the trust account first. The dealer cannot withdraw money from the trust account except to pay the consignor per the written consignment agreement.

After the consignor is paid, the dealer can withdraw any excess — for example, the difference between what the buyer paid and what the consignor agreed to receive.

The trust account must be reconciled monthly. OMVIC's inspections check that the reconciliation is happening.

What happens if the dealer mishandles the trust account

• It's an MVDA violation. OMVIC can take administrative action against the dealer — up to and including suspension or revocation of registration
• It can also be a provincial offence under the Provincial Offences Act, with fines and potential criminal charges for serious cases
• If you suffer a financial loss because of trust-account misuse, the Compensation Fund may be able to help (if the dealer is no longer in business and won't repay)
• OMVIC's compliance inspections specifically check trust-account handling. New registrants are subject to more frequent inspections in the first few years