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Financial protection for Ontario's vehicle buyers
The Motor Vehicle Dealers Compensation Fund, referred to as the Compensation Fund, is a consumer protection program financed by Ontario's registered motor vehicle dealers.
If something does go wrong with a motor vehicle purchase or lease agreement, consumers have access to the Compensation Fund which provides financial assistance to consumers who make a valid claim for a vehicle transaction against an OMVIC-Registered Dealer.
Since its creation on July 1, 1986, the Compensation Fund has paid out over 5 million in compensation to consumers. As the oldest and largest fund of its kind in Canada, the Compensation Fund offers the best protection for vehicle buyers in Ontario.
Consumers who are eligible for compensation may qualify for up to $45,000 per vehicle transaction. In order to qualify, consumers must meet one or more of the eligibility criteria and the claim must be submitted within two years.
How the Compensation Fund is supported:
The creation of the Compensation Fund marked the beginning of a successful collaboration between industry and government in providing consumer protection in the Ontario motor vehicle sales industry. All OMVIC-Registered Dealers in the General, Lease-Finance and Broker registration classes must contribute to the Compensation Fund.
Who administers the Compensation Fund:
OMVIC administers the Compensation Fund on behalf of the Board of Trustees.
The last resort
In many cases, a consumer has the opportunity to resolve the problem by talking with the dealer. If the issue cannot be resolved, OMVIC’s free Complaint Handling Service may be able to assist by negotiating with the dealer on the consumer’s behalf.
If consumers are not successful finding a resolution, they may qualify for compensation without having to file an action in civil court.
Find out more information on the claims process and eligibility requirements.
Learn more about your right when buying a new or used car
Ontario’s consumer laws provide protections when consumers purchase a new or used car from an OMVIC-Registered Dealer.
Click here to learn more about your car-buying rights!
January 11, 2019
The Motor Vehicle Dealers’ Compensation Board of Trustees is seeking a public member.
For more information click below:
Comp Fund Board Info