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

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

  • the price of the automobile;
  • 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 (the total amount to be paid).

Interest rates and credit rates

Any time a credit-related rate (e.g. an interest rate) is indicated in an 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.

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, insurance (other than the automobile insurance premium), administration fees, etc. It is the true cost of the credit.

Reporting a merchant

If you find yourself dealing with merchants using prohibited advertising practices, you can contact the Office de la protection du consommateur to report them.

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Last update : August 1, 2018

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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.