GM Dealership Closes – Regulator Fears Consumers Impacted

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A Toronto General Motors (GM) dealership, Dean Myers Chevrolet Ltd., and 1125278 Ontario Limited, o/a Dealerwerx Leasing, both located at 3180 Dufferin St., North York, have currently closed their doors after the appointment of a receiver, Deloitte Restructuring Inc. (Deloitte), by the Ontario Superior Court of Justice.

The application for appointing a receiver was made by the Royal Bank of Canada.

OMVIC, Ontario’s Vehicle Sales Regulator, is concerned several groups of consumers may be affected by the receivership including those who paid a deposit on a vehicle that was not delivered; traded-in a vehicle on which money was owing that was to be paid by the dealer; purchased a used vehicle with an undischarged lien; purchased an extended warranty, service or protection plan which was not activated; or, have vehicles for sale at the dealership on a consignment basis.

“We have heard from a few consumers who paid deposits but have not been able to take delivery of their vehicles,” stated Laura Halbert, OMVIC deputy registrar. “That includes one consumer who paid $77,000 for a vehicle that was not delivered.”

OMVIC has contacted the Receiver and GM Canada to determine what, if anything, might be done to help these consumers. According to Halbert, “We had positive discussions with GM Canada who expressed a willingness to evaluate each customer’s case to determine if they can assist.”

OMVIC’s Compensation Fund

Some Dean Myers Chevrolet Ltd. or Dealerwerx customers may be eligible to apply to OMVIC’s Motor Vehicle Dealers Compensation Fund. The Fund reimburses qualifying consumers who suffer a financial loss as a result of a trade in a motor vehicle (with a registered dealer). Consumers may be eligible to receive up to $45,000 for each valid claim to the Fund.

Since its inception on July 1, 1986, the Compensation Fund has reimbursed consumers more than $6.9 million. To learn more about the Motor Vehicle Dealers Compensation Fund click here.

What Should Affected Consumers Do?

While it is still early in the bankruptcy proceedings, OMVIC’s priority is to make sure potentially impacted consumers are aware of the steps to take and to understand what recourse may be available to them.

  • Consumers that purchased extended warranties, service or protection plans are urged to contact the warranty/service provider to verify coverage
  • Consumers who left a deposit on a vehicle that was not delivered should contact the Receiver, GM Canada and OMVIC’s Complaints and Inquiries Team
  • Consumers who recently traded in vehicles on which loans were to be paid should contact their financial institution to ensure this was done
  • Customers who recently purchased a used vehicle from the dealer should ensure the vehicle does not have an unexpected lien. This information may be found by consulting a Used Vehicle 
Information Package (UVIP) available from Service Ontario, or a CARFAX (carfax.ca) Vehicle History Report
  • Consumers who left vehicles for sale on consignment should contact the Receiver.

Who to Call?

To contact the Receiver, Deloitte Restructuring Inc., call 416-601-6696. To contact General Motors Canada call 1-800-263-3777.