Dear Licensees,

A $300 required contribution for the Motor Dealer Customer Compensation Fund (the “Fund”) will be included in your license renewal package April 1, 2025.

From 2017-2024, the Fund’s reserves were sufficient, allowing the Registrar of Motor Dealers to waive the fee for all dealers who had contributed for at least three years. Despite active claim management and relatively low claim payouts, the required contributions from new dealers are not enough alone to maintain the Fund balance. The Motor Dealer Act requires motor dealers make contributions to the Fund to ensure its adequacy for current and future claims.

The Fund was established by the Provincial Legislature in 1995, replacing a $15,000 dealer bond that was found to be too expensive and inadequate.

The Fund compensates individuals who have purchased a motor vehicle from a licensed dealer and incurred a financial loss as a result. Eligible losses are defined by regulation and include dealership business failure, dishonest conduct or failure by a licensed dealer to provide clear title to the purchaser. An independent Board, the Motor Dealer Customer Compensation Fund Board, determines who is eligible for compensation. Board members consist of industry and public-at-large members.

For more information on the MDCCF, please click here.