CAMVAP Announces Buyback Award Increases

The CAMVAP program that helps consumers go through vehicle buyback arbitration has gotten some changes. The new amendments will see buyback amounts increase by up to $3,000 and double the maximum award for out-of-pocket expenses.

The Canadian Motor Vehicle Arbitration Plan, or CAMVAP, allows disputes between consumers and manufacturers to be resolved through binding arbitration. In that capacity, it primarily handles disputes over alleged defects in the vehicle that can't, or haven't been repaired – in other words, alleged lemons. It applies to vehicles of the current model year and the four previous model years.

It gives owners a hearing to present their case for why the manufacturer hasn't adequately fixed a defective vehicle, and for the manufacturer to make its own presentation. The arbitrator can rule that the manufacturer buy back your vehicle, repair it, and/or reimburse for certain expenses.

The changes announced today increases the potential buyback amount – from a few hundred dollars to up to $3,000. The actual amount of a buyback depends on the original cost of the vehicle as well as the number of kilometres driven at the time of the hearing.

The potential award for out-of-pocket expenses has increased as well. The maximum was previously $500 and it's been raised to $1,000. That's to cover consumers with expenses for rental vehicles, taxis, towing, and accommodations that resulted from problems with the vehicle. The program can also cover witness costs and up to $500 for diagnostic testing.

The automaker-funded CAMVAP is one of those programs you don't want to have to use, but will be glad it's there if you do.