Who qualifies for the Compensation Fund?

The qualification for the Compensation Fund is specifically aimed at "consumers." This means that the fund is designed to protect individuals who purchase vehicles for personal use rather than for resale or commercial purposes. The focus on consumers is to ensure that those who are most vulnerable in the transaction—individuals making personal purchases—are safeguarded against losses due to the failure of a registered dealership, such as fraud or noncompliance with regulations.

Entities like businesses or individuals who purchase vehicles for commercial use do not qualify for the fund, as it is not intended to extend protections to commercial transactions. This distinction is crucial because it maintains the fund's role in consumer protection while allowing for separate frameworks or remedies for business transactions. Hence, understanding the specific criteria for qualification emphasizes the fund's protective role in the automotive marketplace.