Registration/licensing requirements for trading in cars and car parts

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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 Motor car traders licensing.