TORONTO -

Celebrating 25 years of providing protection to Canadian auto shoppers, the Motor Vehicle Dealers Compensation Fund commemorated its silver anniversary earlier this week at the Annual and General Meeting of the Ontario Motor Vehicle Industry Council.

“We can actually say that Ontario’s consumers are learning to ‘Buy with Confidence’ from provincially-registered dealers who maintain this as an accessible and industry leading compensation fund,” Compensation Fund chair Peter Eatson said during the AGM.

The fund is fully supported and funded by dealers, and it offers up to $45,000 in financial aid to consumers who have legitimate claims against a registered dealer in Ontario. The Compensation Fund — which officials say is the country’s largest and oldest auto fund — is only good for consumers buying from Ontario-registered dealers.

In its 25 years of existence, the fund has doled out $5 million in reimbursements to claimants and has collaborated with OMVIC to educate consumers about how to properly go about buying cars.

Officials said a large chunk of these reimbursed claims stemmed from court-ordered judgments.

"Ontario continues to demonstrate its advanced leadership in consumer protection programs across the province,” stated John Gerretsen, minister of consumer services. “The continuation of the Compensation Fund will ensure that Ontario consumers can ‘Buy with Confidence’ when purchasing vehicles from Ontario-registered dealers.”

Carl Compton, OMVIC’s executive director, added: “The industry is a role model for multi-level teamwork. We want Ontario consumers to know they enjoy a significant measure of protection when they purchase a vehicle from an Ontario-registered dealer or dealership that displays the blue and yellow ‘Ontario Registered Dealer’ decal.”

Offering some dealer perspective, Bob Beattie, the executive director of Ontario’s Used Car Dealers Association, stressed: “The launch of the Compensation Fund 25 years ago provided Ontario car purchasers with the greatest financial protection in North America and did much to enhance the image of our industry.”

Continuing along, officials shared one particular example of a consumer helped by the fund.

Paul Bremner paid $9,156  on what was determined to be a valid motorcycle purchase from a bankrupt Ontario-registered dealer. He was given a full reimbursement in “a relatively short time frame,” officials noted.

“I am so grateful for a consumer protection program like this. Vehicles cost serious money, and I would have had no other remedy available,” Bremner said, adding that he learned something from researching for the lowest-priced product online.

“Never pay for a vehicle entirely upfront. Until you see what you have paid for, keep your money in your pocket. I was lucky that OMVIC was there for me,” he continued.