Advice for consumers planning to use CAMVAP

The published success rate for consumers is around 61%, but 54% of consent awards and 21% of arbitrated cases were ordered back to the dealer for yet another repair. For many consumers who have gone through the arbitration process, this is not a satisfactory resolution, but in CAMVAP's statistics they appear as a successful resolution. Some consumers who went through the arbitration process contacted the APA to inform us they wanted the vehicle replaced or a monetary award and were not happy with a return trip to the dealer.

A tiny number of CAMVAP cases actually results in a vehicle replacement (no longer possible after changes to the program) or a full refund. In fact, only 1% of consent awards involved replacing the vehicle, and no arbitrated case concluded in a vehicle replacement. CAMVAP arbitrators need guidelines for identifying just how bad a vehicle has to be before replacement can be required. Because CAMVAP is an industry-controlled program with weak government and consumer representation, it has successfully avoided introducing guidelines. In the U.S. every state has a lemon law which defines how defective vehicles must be to allow a return.

A small number of cases results in a vehicle refund less an allowance for use. More precisely, 1% of consent awards and 12% of arbitrated cases are buybacks with reductions. Depending on whether the vehicle is purchased or a leased, CAMVAP has a formula for calculating the depreciated value of a vehicle for a cancellation of sale.

CAMVAP does not recognize certain dealer-installed accessories: For example, rustproofing and extended warranties are not eligible for refund.

Percentage use of the vehicle is based on a lifespan of 160,000 km. Average lifetime mileage of a new vehicle is now around 250,000 km so CAMVAP is discounting the vehicle life by 40% in their calculations. In some cases brought to the APA's attention, the CAMVAP valuation was not much different from the market value.

CAMVAP is fast. Average time from submission of the request for arbitration until the decision is around 70 days. Administration issues are a major source of the complaints registered in the U.S. about auto arbitration programs. CAMVAP is well-run which reduces complaints. With CAMVAP, most people don't register concerns until after they have received their decision.

CAMVAP stresses it is friendly and free. The technical experts CAMVAP uses are usually supplied by the CAA. In a technical case, you are much better off to bring your own expert, but CAMVAP’s literature does not tell you this is the case.

CAMVAP's budget is about 1.5 million dollars per year. If we average this amount over the 693 hearings that were held in 2002, the cost per hearing is approximately $2000, not so inexpensive for the so-called efficient private sector. Payment to the arbitrator is around $350 for the hearing and writing the decision -- a small amount for the work involved, and not a large component of the overall budget. In 2002,approximately $250 000 was set aside for the arbitrators, the rest is for administration of the program. The manufacturers pay the cost of the program. CAMVAP’s budget represents a cost of about $1.00 for every new vehicle sold in Canada.

CAMVAP has one consumer representative (Consumers Association of Canada) and several government reps on its board (British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Yukon Territory, Northwest Territory and Nunavut Territory).

There were several other shortcomings with the program that were corrected only after the OPC came on board in early 2000. The Province of Quebec only joined the program after government officials were assured that CAMVAP would drop the requirement that consumers keep its decisions confidential – one of many extraordinary restrictions in the program that representatives from consumer ministries across Canada and the weak consumer representation had been prepared to live with. CAMVAP still needs a definition of what constitutes a lemon comparable to U.S. lemon laws.