An auto wrecker and recycler who buys parts and other component car parts must register as a second-hand dealer.
However, second-hand dealer registration does not cover a business that trades in motor vehicles, and it is an offence to carry on such a business unless licensed under the Motor Car Traders Act 1986.
A motor vehicle is one (whether or not in working order or complete) that:
- is used or intended to be used on a roadway, and
- built to be propelled by a motor that forms part of the vehicle.
You must usually apply for a motor car trader’s licence in order to:
- buy or offer to buy motor vehicles from the public with the specific intention of dismantling them to sell the parts for scrap metal
- sell or offer to sell motor vehicles to the public
- exchange motor vehicles with the public.
An auto wrecker or recycler must register as a second-hand dealer but does not need a motor car trader’s licence to:
- buy only exempt vehicles
- buy only written-off, incomplete or damaged vehicles that can never be returned to the road
- sell such vehicles for scrap metal or parts
- exclusively buy and sell car parts.
For more information about applying for a motor car trader’s licence and exempt vehicles, view our Motor car traders licensing section.
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