How does the transaction fee work for leases?
New car dealers are required to remit the transaction fee for leases on behalf of the lessors with whom their manufacturers have arrangements (sometimes referred to as “captive lessors”). This applies regardless of whether the vehicle being leased by the dealer is a new or used car. New car dealers may choose to pass on the transaction fee to consumers through their retail bill of sale. (See #7 re: tax implications.) Independent lessors are required to remit their transaction fee payments directly to OMVIC.
