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Motor Dealers and Repairers Compensation Fund 

NSW Fair Trading is responsible for the administration of the Motor Dealers and Repairers 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 and Repairers Compensation Fund? 

The Fund protects you in many instances, when buying or selling a vehicle through a licensed motor dealer (dealer) or when having repair work carried out by a licensed motor vehicle repairer (repairer).

Dealers and repairers finance the fund through licensing fees.

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When can I lodge a claim? 

You can lodge a claim if you have incurred a loss when buying or selling a motor vehicle through a licensed dealer or incurred a loss as a result of repair work carried out by a licensed repairer.

You can claim against a dealer or repairer who is no longer trading.

Claims can relate to:

  • a dealer’s failure to meet warranty obligations (this does not include non-warrantable vehicles)
  • 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
  • repair work that was not competently done.

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 NSW Civil and Administrative Tribunal (NCAT).

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How do I lodge a claim? 

You are required to complete a claim form and submit documents in support of your claim. Be sure to read through the explanatory notes before you fill in the claim form.

View or download the Motor Dealers and Repairers Compensation Fund claim form and guide from the Fair Trading website.

You should include sufficient information and documentation in your claim to prove your loss, this may include copies of any:

  • quote for repair work
  • invoice
  • receipt
  • prescribed notice
  • sales contract / consignment agreement
  • financial contract
  • documentary proof of payment (eg. bank statement, cheque)
  • proof of motor vehicle ownership.

In addition, if you have already taken your matter to NCAT or to court you should provide details of the outcome of any hearing.

It is important that you are specific about the dealer or repairer that relates to your claim, the circumstances that led to your loss and the amount of your loss.

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How long do I have to lodge a claim? 

A claim against the Fund must be made within 12 months after the loss is incurred or the claimant becomes aware of the loss.

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What is the maximum payment that I can receive from the Fund? 

You can receive a maximum payment of $40,000.

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Are there any parts of my loss that I can’t claim? 

Some of the more common scenarios where you cannot claim a loss:

  • 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.

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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 incapable of being registered in NSW
  • an excavator, road grader, road roller, bulldozer or forklift
  • a motor vehicle which is constructed or adapted for road construction or maintenance (including cleaning, sweeping or watering roads)
  • a motor vehicle that has been modified solely for use in motor racing or off-road motor sport
  • a motor vehicle not substantially used for private purposes
  • loss incurred in making the claim (including receiving legal advice)
  • a motor vehicle (other than a motor cycle) more than 35 years old
  • a motor cycle more than 10 years old.

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What other restrictions are there on lodging a claim? 

If you are a trade owner (for example, a dealer, wholesaler, financier, motor vehicle recycler or repairers) you cannot lodge a claim.

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Further information 

If you require further information or assistance lodging a claim, contact Fair Trading on 13 32 20.

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