What is the purpose of the Motor Vehicle Dealers Compensation Fund?

The Motor Vehicle Dealers Compensation Fund is specifically designed to protect consumers who suffer financial losses as a result of misconduct by registered motor vehicle dealers. This means that if a consumer has a legitimate claim against a dealer—such as fraud or failure to deliver a purchased vehicle—the fund can provide compensation to the affected consumer.

This fund serves as a safety net for consumers, ensuring that they have recourse in situations where they might otherwise be left unprotected. By covering losses incurred due to dealer misconduct, it fosters trust in the motor vehicle sales industry and encourages ethical practices among dealers.

While other options may touch upon aspects of the automotive industry or support dealers in different ways, they do not encapsulate the primary function of the Compensation Fund, which is centered on consumer protection.