RV'S AGE ONE YEAR INSTANTLY UNDER MTO POLICIES:
RUNCIMAN
QUEEN'S PARK - When is a 2005
recreation vehicle (RV) not a 2005 recreation
vehicle? – when it comes under the registration
policies of the Ministry of Transportation and
then it’s a 2004 vehicle.
Leeds-Grenville MPP Bob Runciman tried to get
an explanation of RV registration policies from
Minister Harinder Takhar in the Ontario Legislature
today without success. The question in the Legislature
followed a month of trying to get an explanation
from his Ministry office.
Runciman has been approached by two major RV
dealerships in his riding who have suffered
substantial losses due to the registration policies
put in place by the Ministry of Transportation
late last year.
Under these policies, the MTO has decreed that
the manufacture date of an RV is determined
by the manufacture date of the chassis. In other
jurisdictions including most provinces and the
United States, the year of manufacture is determined
when the finished vehicle is produced.
The reasons are obvious. Manufacturers of recreation
vehicles must order the chassis several months
in advance of delivery before the living section
can be added. The chassis represents only a
small portion of the cost of today’s RVs
which can now reach prices of up to half a million
dollars.
In the United States, the National Highway
Traffic Safety Administration ruled in 1979
that the year of manufacture is determined when
the completed vehicles come off the production
line.
“This is a very shortsighted policy and
makes no sense,” says Runciman. “One
Leeds-Grenville RV dealer bought six used vehicles
in the U.S. and had each one relegated one year
older when he attempted to transfer the registration.
That represents a substantial loss.
“Also big losers are individuals who
buy a vehicle of a certain year outside the
province only to have its year of manufacture
downgraded one year when they attempt to register
it here,” added Runciman.
He suggests this policy might even be a violation
of Free Trade regulations.
This policy also affects some other vehicles
including fire trucks and ambulances.
“I can’t understand why Ontario
would have registration policies that differ
from other jurisdictions and that penalize dealers
and individuals who purchase RVs manufactured
outside the province,” said Runciman.
“Another negative point is that policies
that reduce the value of the vehicle also decrease
the amount of sales tax to be paid at time of
registration.”
Media Contact
Bob Runciman
(416) 325-1522
