OMVIC may provide financial assistance when car deals go wrong

Published On
May 16, 2022

The Motor Vehicle Dealers Compensation Fund is a consumer protection program financed by Ontario’s registered motor vehicle dealers. The fund allows car-buyers, who have purchased from OMVIC-registered dealers and who meet the eligibility criteria, to receive financial assistance if something goes wrong with a vehicle purchase or lease agreement.

Since its creation on July 1, 1986, the fund has paid out over $6 million in compensation to consumers and offers enhanced protection for vehicle buyers in Ontario.


If you are eligible for compensation, you may receive up to $45,000 per vehicle transaction. To qualify, you must meet one or more of the eligibility criteria and the claim must be submitted within two years of meeting that eligibility criteria. Examples include consumers who have been affected by the following:

  • Dealers who have failed to remit payment on an extended warranty, contract or have not paid for a repair which would have been covered by their warranty contract;
  • Dealers who have failed to remit or honour the conditions of a service plan agreement; and
  • Dealers who have failed to satisfy a court order that becomes final


Though the compensation fund is meant to protect consumers, there are instances where claims cannot be approved which include:

  • Consumers who purchased a motor vehicle privately (i.e., not through an OMVIC-registered dealer);
  • If the motor vehicle was purchased for business purposes;
  • If the consumer is related to an OMVIC-registered dealer;
  • The consumer is complicit in illegal activity in the motor vehicle transaction; and
  • A consumer who misrepresents the nature of the claim or provides false or misleading evidence in support of the claim.


Before making a claim, contact OMVIC’s consumer support team at or 1-800-943-6002 for expert advice.

It is important for a consumer to then contact the registered dealer in an attempt to work out a reasonable solution. If the issue remains unresolved, the consumer may be eligible to make a claim to the compensation fund. Below is a snapshot of the claims process.Claimant completes and submits the compensation fund application package along with supporting documents.

OMVIC staff review the application to ensure it is complete.

The application is sent to the Compensation Fund Board of Trustees for review to ensure the application meets the eligibility criteria. These individuals manage the fund and ensure that it is administered in a responsible manner.

The board of trustees will inform all claimants of their final decision. If a claim is denied by the board of trustees, the claimant has the right to appeal the decision.

During this busy car-buying season, visit to access free car-buying resources to get you started and sign up for the quarterly newsletter, Consumer Line.

Contact OMVIC’s consumer support team at or 1-800-943-6002 for expert advice and answers to all your car buying questions.

To see if you are eligible to receive financial assistance from the compensation fund, call 1-800-943-6002 or email