Motor Car Traders Guarantee Fund

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How to claim

If you have been unable to resolve your complaint with a motor car trader and are eligible to make a claim, please complete the Application for compensation - Motor Car Traders Guarantee Fund (Word, 120KB).

For more information on compensation claims, view our Compensation claims - motor cars page.

Purpose of the fund

The Motor Car Traders Guarantee Fund meets the cost of:

  • successful claims made by persons who have suffered a loss if a motor car trader fails to comply with certain conditions of the Motor Car Traders Act 1986 (outlined below)
  • regulating motor car trading (to protect the Victorian public).

Money for the fund comes from motor car traders’ licensing fees, and penalties paid for breaches of the Motor Car Traders Act 1986.

Claims for compensation from the fund are heard by the Motor Car Traders Claims Committee. For more information, view our Motor Car Traders Claims Committee page.

When a claim can be made against a motor car trader

A claim can be considered if a consumer buys a motor car and it appears that the trader has not:

  • complied with warranty provisions (this applies to motor cars but not to motorcycles or commercial vehicles)
  • transferred a clear title to the car
  • paid the purchase price to a consumer if the consumer has sold a car to the trader, or paid another person on the consumer’s behalf, such as a finance company
  • passed on transfer, registration fees or stamp duty to VicRoads
  • provided a Roadworthy Certificate or other documents necessary for the motor car to be registered
  • passed on money paid as a premium or purchase price for an insurance policy or warranty
  • satisfied a court order or an order from the Victorian Civil and Administrative Tribunal (VCAT)
  • refunded the purchase price or a deposit following cancellation of a contract
  • delivered the motor car after receiving payment of the purchase price.

A claim can also be made if a motor car trader engages in:

  • consignment selling
  • odometer tampering
  • disposal of a motor car given as a trade-in before the consumer’s cooling-off period expires.

Role of licensing fees

License fees paid by motor car traders are deposited into the Motor Car Traders Guarantee Fund.

The fund will seek to recover any amount paid out against the licensee. If the licensee is a company or partnership, the fund will seek reimbursement from the company directors or partners as the case may be.