Motor dealers and repairers compensation fund

Key information

This compensation fund is managed by NSW Fair Trading and protects you if you buy or sell a vehicle through a motor dealership or have repair work done by a licensed repairer. The fund is financed by licensing fees from dealers and repairers. NSW Fair Trading manages the fund and assesses all claims.

The fund provides ‘last resort’ protection when you have been unable to recover your loss through the dealer or repairer. You must take all reasonable steps to recover your loss before making a claim. This may include taking action in a court or tribunal and attempting to enforce the judgement.

When to lodge a claim

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

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

Claims can relate to, but are not limited to:

• a dealer’s failure to meet dealer guarantee obligations (this does not include vehicles outside of the guarantee period)
• a dealer selling you an encumbered vehicle (a vehicle with money owing on it)
• 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 (consignment sales)
• repair work that was not competently done.

Before lodging a claim, you should first try to resolve the matter yourself.

If you have a complaint about a motor dealer or repairer, you can lodge your complaint online.

Lodging a claim online

You must complete a claim form and submit documents in support of your claim. Read through the explanatory notes before you fill in the claim form.

Download the form

To support your claim, you should include copies of any:

• sales contract or consignment agreement 

• financial contract 

• documentary proof of payment (for example, a bank statement or cheque) 

• proof of vehicle ownership.  

• invoice 

• receipt 

• prescribed notice 

• quotes for repair work 

If you’ve already taken your matter to the tribunal or to court, you should provide details of the outcome of all hearings. 

You should be specific about:

• the dealer or repairer that relates to your claim
• the circumstances that led to your loss
• the amount of your loss

Time limits for lodging a claim

A claim must be made within 12 months after the loss is incurred or you become aware of the loss.

Maximum payments you can claim from the fund

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

What you cannot claim from the fund

You cannot claim a loss if:

• it consists of or has arisen from death or injury
• it relates to any property other than the vehicle
• it relates to any improvements made to the vehicle after the date of purchase
• loss incurred in making the claim (including receiving legal advice).

You cannot claim your loss if your claim is related to any of the following vehicles:

• 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 constructed or adapted for road construction or maintenance. This includes cleaning, sweeping or watering roads 
• a motor vehicle that has been modified solely for use in motor racing or off-road motorsport 
• a motor vehicle not substantially used for private purposes 
• a motor vehicle (other than a motorcycle) more than 35 years old 
• a motorcycle more than 10 years old. 

Other restrictions on lodging a claim 

You cannot lodge a claim if you are a trade owner. For example, a dealer, wholesaler, financier, or repairer cannot lodge a claim.