Motor dealers and repairers compensation fund

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The Motor Dealers and Repairers Compensation Fund protects you when you buy or sell a vehicle through a licensed motor dealer or when repair work is being done by a licensed motor vehicle repairer. Dealers and repairers finance the fund through licensing fees. NSW Fair Trading is responsible for managing the Fund and assessing all claims.

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 have incurred a loss as a result of repair work carried out by a licensed repairer.

You may lodge a claimclaim 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.

How do I lodge a claim?

You must 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 (PDF, 45.75 KB).

To support your claim, you should 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.

If you’ve already taken your matter to the Tribunal or to court you should provide details of the outcome of allhearings. You should be specific about the dealer or repairer that relates to your claim, the circumstances that led to your loss and the amount of your loss.

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 you become aware of the loss.

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

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

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.

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 motorcycle) more than 35 years old
  • a motorcycle 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, motor vehicle recycler or repairers) you cannot lodge a claim.

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