Motor Dealers Compensation Fund
NSW Fair Trading is responsible for the administration of the Motor Dealers Compensation Fund (the Fund), including the assessment of all claims lodged.
The following information will assist you lodge a claim with the Fund.
What is the Motor Dealers Compensation Fund?
The Fund protects you when buying or selling a vehicle through a licensed motor dealer (dealer) or car-market operator (operator).
Dealers and operators finance the fund through licensing fees.
Top of pageWhen can I lodge a claim?
You can lodge a claim if you have suffered a loss when buying or selling a vehicle through a licensed dealer or operator.
You can claim against a dealer or operator who is no longer trading.
Claims can relate to:
- a dealer's failure to meet warranty obligations (this does not include non-warrantable vehicles purchased on a form 8 or form 9)
- a dealer selling you an encumbered vehicle, eg. stolen vehicle
- failure of a dealer to repay or return a deposit
- failure of a dealer to pass on sale proceeds for a vehicle sold on the customer’s behalf.
Before lodging a claim, you should first try to resolve the matter yourself. This may include speaking with the dealer or operator, mediation with a third party or seeking an order through the local court or the Consumer, Trader & Tenancy Tribunal (CTTT).
How do I lodge a claim?
Your claim must be in writing and supported by a statutory declaration.
You can lodge your claim at any Fair Trading Centre or through the post.
You should include sufficient information and documentation in your claim to prove your loss, this may include copies of any:
- invoice
- receipt
- prescribed notice
- sales contract
- financial contract
- documentary proof of payment (eg. bank statement, cheque)
- proof of motor vehicle ownership.
It is important that you are specific about the dealer or operator that relates to your claim, the circumstances that led to your loss and the amount of your loss.
What is the maximum payment that I can receive from the Fund?
You can receive a maximum payment of $30,000.
Are there any parts of my loss that I can’t claim ?
You cannot claim a loss that:
- consists of or has arisen from death or injury
- relates to any property other than the vehicle
- relates to any improvements made to the vehicle after the date of purchase.
What can't I claim?
If your loss relates to any of the following vehicles, you cannot claim your loss:
- a crane, hoist or conveyer
- a motor vehicle (other than a motor cycle) or a second-hand motor cycle incapable of being registered in NSW
- an excavator, road grader, forklift or other machinery or apparatus (other than a tractor) not constructed on a normal motor lorry chassis
- a motor vehicle which is constructed or adapted for road construction or maintenance (including cleaning, sweeping or watering roads)
- a commercial vehicle (other than a vehicle intended for private purposes)
- a motor vehicle which exceeds the luxury car limit (currently $57,180)
- a motor vehicle more than 35 years old
- a motor cycle more than 10 years old.
What other restrictions are there on lodging a claim?
If you are a trade owner (for example, a dealer, wholesaler, financier or auto-dismantler) you cannot lodge a claim.
If you have lodged a claim with the Motor Vehicle Repair Industry Contingency Fund, you are unable to claim with the Motor Dealers Compensation Fund.
Further information
If you require further information or assistance lodging a claim, contact Fair Trading on 13 32 20.
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