OMVIC Motor Vehicle Dealers Compensation Fund

Question 1

What is the maximum amount a consumer can recover from the Motor Vehicle Dealers Compensation Fund for a single claim?

Accepted Answer

$45,000

Answer

$45,000 is the legislated maximum payout per claim under the MVDA. This cap applies regardless of the total loss suffered by the consumer.

Question 2

Who funds the Motor Vehicle Dealers Compensation Fund?

Accepted Answer

Registered dealers through a transaction fee remitted for each vehicle sold or leased

Answer

Registered dealers remit a transaction fee to OMVIC for every vehicle sold or leased, including fleet and as-is transactions. These fees fund the Compensation Fund.

Question 3

How much is the transaction fee that a registered dealer must remit to OMVIC for each vehicle sold or leased?

Accepted Answer

$10 per vehicle

Answer

$10 per transaction is the prescribed fee dealers must remit to OMVIC for each vehicle sold or leased, which flows into the Compensation Fund.

Question 4

When must a registered dealer remit their transaction fees to OMVIC?

Accepted Answer

Annually, with their dealer registration renewal

Answer

Transaction fees are remitted annually at the same time the dealer submits their registration renewal fee, not on a per-sale or quarterly basis.

Question 5

Which of the following scenarios would most likely qualify for a valid claim against the Motor Vehicle Dealers Compensation Fund?

Accepted Answer

A consumer suffers a financial loss because a registered dealer committed fraud in the sale

Answer

The Compensation Fund exists to reimburse consumers who suffer financial losses as a direct result of a registered dealer's fraudulent or dishonest conduct. Buyer's remorse and valuation disputes are not covered.

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC (Ontario Motor Vehicle Industry Council) Practice Test

OMVIC Motor Vehicle Dealers Compensation Fund