Compensation Fund

The Motor Vehicle Dealers Compensation Fund (MVDCF) is available to car buyers who purchase from an OMVIC-registered dealer. It reimburses eligible car buyers who have suffered a proven financial loss related to a vehicle purchase, lease or consignment transaction. This consumer protection program is funded by Ontario’s dealers. If the fund drops below $3 million, dealers must make a payment to cover any shortfall.

If something goes wrong when you buy or lease a vehicle and you are not successful in finding a resolution with a dealer, you may qualify for compensation.


Since its creation on July 1, 1986, the compensation fund has paid out more than $7 million to help car-buyers who have had problems with their car purchases.


Do you qualify to make a claim?

You must file an application within two years after an eligible issue has occurred. Are you eligible to receive compensation?

  • You have given a deposit but the dealer has not provided the vehicle or an alternative acceptable to you.
  • A court has ordered the dealer to pay you (for example, if you found the odometer on a vehicle had been rolled back and sued the dealer for misrepresentation and won but the dealer refuses or is unable to pay).
  • The dealer has failed to return a deposit to a consumer on an undelivered motor vehicle.
  • The claim is for a deficiency the dealer has refused to honour or failed to remit (if you had indicated in the sale or lease contract that the matter was material to you).
  • The dealer goes bankrupt, a receiver has been appointed or the dealership is closing down.
  • The dealer has been convicted of an offence related to the trade in the motor vehicle (for example, the dealer was convicted of fraud for tampering with an odometer).
  • The dealer has failed to pay an extended warranty contract, or has not paid for a repair which would have been covered by their warranty contract, or has not refunded the warranty premium you have paid.
  • The dealer has failed to remit or honour the conditions of a service plan agreement.
  • The dealer has misrepresented the vehicle to you so you would be eligible for cancellation of the contract under the Motor Vehicle Dealers Act (only applies to transactions after January 1, 2010).
  • The dealer has their licence revoked by the registrar and one of the reasons includes issues related to your vehicle transaction
  • The motor vehicle has been seized by law enforcement or lawfully by a creditor (not the car buyers) and the motor vehicle will not be returned.

  • Car buyers can only make a claim to the fund if they dealt with an OMVIC-registered dealer at the time of the transaction. Car buyers who buy a vehicle privately do not have access to the fund.
  • If the motor vehicle was purchased for business purposes.
  • If the consumer is related, by blood or adoption, or is the spouse of an OMVIC-registered dealer.
  • The car buyer was complicit in illegal activity in the motor vehicle transaction.
  • A car buyer who misrepresents the nature of the claim or provides false or misleading evidence in support of the claim.
  • Only vehicles defined under the MVDA are eligible for compensation. For example, snowmobiles and pull trailers are not covered.

Who administers the compensation fund

An independent board of trustees consisting of nine members from the public and auto industry, oversee the compensation fund in accordance with the MVDA and ensure that the funds are administered in a fiscally responsible manner.

Make a claim