Is a merchant advertising the terms of an automobile instalment sale contract (i.e. the merchant offers that you pay for an automobile, for a fee, in several payments)?

If the advertisement includes any of the following points, it must also mention all of the others:

  • an example of the total price of an automobile for which credit may be authorized;
  • the down payment charged at purchase, or an indication that no down payment is required;
  • a breakdown of the credit charges;
  • the total credit charges;
  • the number of instalments and the length of the instalment periods;
  • the amount of each instalment;
  • the consumer's total obligation.

Interest rates and credit rates

Any ad that makes reference to a credit rate must indicate that rate.

Any time a credit-related rate (e.g. an interest rate) is indicated in a credit advertisement, the credit rate calculated in accordance with the Consumer Protection Act must be disclosed just as prominently. An advertisement may, however, only indicate the credit rate calculated in accordance with the requirements set forth in the Act.

The interest rate is an indication, expressed as an annual percentage, of the interest paid on the amount financed.

The credit rate calculated in accordance with the Consumer Protection Act is an indication, expressed as an annual percentage, of the total of all credit fees charged by virtue of the credit contract, including: interest, administration fees, etc. It is the true cost of the credit.

Reporting a merchant

If you find yourself in a situation in which these rules are not respected, you can contact the Office de la protection du consommateur.

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Last update : October 16, 2020

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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.