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When buying a caravan or camper, most people spend plenty of time comparing layouts, specifications, brands, batteries, suspension and tow weights.
For people who purchase their caravan from a Licensed NSW Motor Dealer, you have some unique, and powerful protections which you should be aware of, for piece of mind.
Before you proceed with any purchase, there is another question worth asking before transferring a deposit on ANY van or camper.
Who am I actually buying from, and what protection applies to my money?
In NSW, customers purchasing through a NSW licensed motor dealer may have access to an important consumer protection called the Motor Dealers and Repairers Compensation Fund.
Changes introduced in September 2025 made this particularly relevant to caravan buyers, because trailers and towable recreational vehicles are now included within the scheme.
The Motor Dealers and Repairers Compensation Fund is administered by NSW Fair Trading.
It provides last-resort financial protection to eligible consumers who suffer a loss when dealing with a licensed motor dealer or licensed motor vehicle repairer and have been unable to recover that loss directly.
The Fund is financed through licensing fees paid by dealers and repairers.
It is not an insurance policy and does not automatically reimburse every loss. NSW Fair Trading assesses claims individually and consumers must generally take reasonable steps to recover their loss first.
From 1 September 2025, NSW expanded the Fund to include trailers and towable recreational vehicles, which had previously been excluded.
The maximum amount that an eligible consumer can receive from the Fund was also increased from $40,000 to $100,000.
For caravan and camper buyers, that was a significant change.
It means the legal structure of the transaction, including whether the seller is a licensed NSW motor dealer, can have a real impact on the protections available if something goes wrong.
NSW Fair Trading gives a number of examples of losses that may result in a claim, including:
a dealer failing to repay or return a deposit
a dealer selling an encumbered vehicle, meaning money is still owing over it
a dealer failing to meet applicable dealer guarantee obligations
a dealer failing to pass on proceeds from a consignment sale
certain losses relating to repair work.
Importantly, NSW Fair Trading also states that a claim may be lodged against a dealer or repairer that is no longer trading.
This is particularly relevant where a customer has paid money towards a vehicle and the business subsequently closes or becomes unable to meet its obligations.
However, insolvency or business closure does not automatically result in a successful claim. The customer must have suffered an eligible financial loss and NSW Fair Trading determines whether the claim meets the requirements of the legislation.
This point is important.
The Compensation Fund is not designed to be the first step whenever there is a disagreement with a dealership.
NSW Fair Trading describes it as last-resort protection.
Consumers are expected to take reasonable steps to recover their loss directly from the dealer or repairer before making a claim. Depending on the circumstances, this can include dispute resolution, court or tribunal action and attempts to enforce a judgment.
The current maximum payment from the Compensation Fund is:
$100,000
The actual amount available depends on the financial loss suffered and NSW Fair Trading's assessment of the claim.
There are also time limits.
A claim generally needs to be lodged within:
18 months of the loss being incurred, or
12 months after obtaining a court or tribunal judgment, order or other decision relating to the loss.
Regardless of which caravan brand or business you choose, there are some simple checks worth making before transferring significant amounts of money.
Do not assume a caravan manufacturer, dealership or seller is a licensed NSW motor dealer.
Service NSW provides a public licence search that allows consumers to search by business name, licence number, ABN, ACN or location.
The important entity is the business you are actually entering into the contract with.
Use the Australian Government's ABN Lookup service to check the ABN appearing on your quotation and invoice.
Confirm that:
the ABN is active
the legal entity is the one you expect
the business name corresponds with that entity.
A recognised brand name and the legal entity receiving your money are not necessarily the same thing.
Before making a payment, compare:
the seller named in your contract
the entity issuing the invoice
the ABN
the bank account you have been instructed to pay.
If the entities differ, ask why before transferring funds.
Every dollar paid before your caravan is completed increases the amount of money exposed during the build period.
Progress payments are not necessarily improper, but customers should understand exactly why they are being requested and what happens to those funds if the vehicle cannot ultimately be supplied.
Where the transaction allows it, keeping the initial payment relatively modest and paying the majority once the caravan is completed materially reduces that exposure.
For online motor dealer transactions in NSW, the legislation goes further and limits the deposit that can be taken before the customer receives possession to 10% of the purchase price.
Keep copies of your:
contract
quotation
final specifications
invoices
receipts
bank transfer records
important emails or written correspondence.
NSW Fair Trading specifically asks for this type of evidence when assessing Compensation Fund claims.
The Compensation Fund is not the only recent change affecting caravans.
From 1 September 2026, statutory dealer guarantees also extend to eligible trailers and towable recreational vehicles sold by licensed NSW motor dealers.
The statutory period is:
6 months for a new trailer or towable recreational vehicle
3 months for an eligible second-hand trailer or towable recreational vehicle that is no more than 10 years old.
Those dealer guarantees are separate from rights consumers may have under the Australian Consumer Law and any manufacturer's warranty.
A caravan being built by a recognised manufacturer does not, by itself, determine what consumer protections apply.
What matters is the actual transaction.
If you purchase from and make payments to a licensed NSW motor dealer, that dealer operates within the NSW motor dealer regulatory framework and eligible transactions may have access to the Compensation Fund.
If you purchase directly from another entity (for example, from a manufacturer direct, or interstate), the protections available may be different.
That doesn't mean one business model is automatically good and another is bad. It simply means buyers should understand the legal and financial structure before committing significant money.
At Off Grid Outfitters, we think customers should know these protections exist, whether they ultimately purchase from us or from another licensed NSW dealer.
For an investment of this size, a few checks before making payment are worthwhile.
We encourage customers to use the official government resources below rather than relying solely on information provided by us, as a seller.
NSW Fair Trading: Motor Dealers and Repairers Compensation Fund
Explains eligibility, claim circumstances, exclusions, claim limits and the claims process.
Service NSW: Check a Motor Dealer Licence
Search for a dealer using its name, licence number, ABN, ACN or location.
Australian Government: ABN Lookup
Confirm the legal entity, ABN status and registered business names.
NSW Fair Trading: Dealer Guarantees and Warranties
Information about statutory dealer guarantees and Australian Consumer Law protections.
Motor Dealers and Repairers Act 2013 and Motor Dealers and Repairers Regulation 2025
The underlying NSW legislation governing the scheme.
This article provides general information only and does not constitute legal or financial advice. Eligibility for the Motor Dealers and Repairers Compensation Fund depends on the circumstances of each claim and is determined by NSW Fair Trading. Information current September 2026.
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Join us on Saturday, 5 September as we celebrate the official Grand Opening of our new Campbelltown headquarters. Explore Australia's leading premium off-road caravan and camper brands, meet manufacturer representatives, enjoy exclusive one-day-only offers, great food, giveaways and family-friendly activities. We'd love to welcome you and show you around our new home.
It was a night we'll remember for a long time. From Darren Kenney being named Employee of the Year, to Stephen Naraj being recognised as a Young Achiever finalist, our team earning Team of the Year finalist honours, and Off Grid Outfitters receiving Silver for Dealer of the Year, we're incredibly proud of what our people have achieved together.
Four finalist nominations, one incredible team. See how Off Grid Outfitters has again been recognised among NSW's leading caravan and camping dealerships.
