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Before starting your application
Individuals with an equivalent licence or registration in an Australian state or territory that is participating in Automatic Mutual Recognition (AMR) may be able to practice as a motor car trader in Victoria by submitting an AMR notification. For more information, view Automatic mutual recognition.
Generally, if you deal in four or more cars per year, you need a licence. In some circumstances, you need a licence if you deal in fewer than four cars. For more information, view Definitions.
Some employees working in customer service roles do not need a motor car trader's licence. For more information, view Customer service employees.
Exemptions
Because they are not considered 'motor cars', you do not require a motor car trader's licence to deal in:
- tractors
- a vehicle which has an engine used to drive or operate an agricultural implement which forms part of the vehicle
- vehicles not (and not intended to be) used on a road.
Some types of transactions do not require a licence:
- buying, selling, or exchanging motor cars with a licensed motor car trader, a special trader (such as a motor car financier or motor car manufacturer), or an employee
- selling by a financier of repossessed or returned cars at public auction or by public tender
- selling by a financier by private sale to buyers introduced to the financier by people that the cars were repossessed from
- selling or offering to sell a car to someone who has hired or leased it continuously for at least three months before the offer or sale. (Note: This does not exclude rent-to-buy businesses from requiring a licence)
- buying and selling or offering to buy and sell motor cars at public auction, where the cars were last owned by:
- a government department or public statutory authority
- a company that has been wound up and the cars offered for sale by a liquidator
- selling at public auction, where the motor car is:
- owned or used by a council within the meaning of the Local Government Act 1989
- owned by the executor or administrator of a deceased person's estate
- owned by an insurer of motor cars - if the motor car is sold in the course of that business, and at the time of auction damaged with the reasonable cost of repair being more than $4,000 (or exceeding the value of the car).
Eligibility
To be eligible for a licence you must be:
- at least 18 years old
- likely to continue to have (and currently have) sufficient funds to carry on the business
- a fit and proper person to be a licensed motor car trader
- able to show that you have premises from which you can lawfully carry on business
- likely to carry on business honestly and fairly
- likely to maintain effective control of the business
- able to show you have sufficient knowledge of the Motor Car Traders Act 1986 and the Motor Car Traders Regulations 2018 to carry on your business.
If you are currently licensed in another state or territory of Australia, you may be eligible to work in Victoria under the Automatic Mutual Recognition scheme without having to apply for a new licence. You may be required to notify the Business Licensing Authority (BLA).
Ineligibility
Sole traders, partnerships, partners, companies, and company directors must not:
- be disqualified from holding a motor car trader's licence (or equivalent) anywhere in Australia or elsewhere, or the subject of an order by any regulatory body disqualifying you from acting as a motor car trader or equivalent
- be a director or officer of a corporation that is disqualified from holding a licence or have been a director or officer of a such a corporation when it was disqualified
- be a represented person under the Guardianship and Administration Act 1986 – this means that a guardian and/or administrator has been appointed by the Victorian Civil and Administrative Tribunal to make legal or financial decisions for you
- have been a partner, director or a person involved in managing a partnership or body corporate that has had a claim admitted against the Motor Car Traders Guarantee Fund
- be insolvent or an externally administered company.
Sole traders, partnerships, partners, companies, and company directors are also deemed ineligible, but may apply for permission, if they:
- within the last 10 years, have been convicted or found guilty of a disqualifying offence involving fraud, dishonesty, drug trafficking or violence punishable by 3 months or more in prison. For information about spent convictions, view Spent convictions
- have had a claim admitted against the Motor Car Traders Guarantee Fund.
Permission
For disqualifying criminal offences and claims against the Motor Car Traders Guarantee Fund, you may still be granted a licence if you apply for permission.
For more information, view:
Associates
When you apply for a motor car trader licence, the BLA will ask you for information about your ‘associates’ - that is, people you have a close association with who may have significant influence over the business. This will help the BLA determine if you or your company are fit and proper to hold a licence. For more information, view Associates.
Records checks
You must provide proof of your identity as part of your application.
You may be able to do this by verifying your identity online. For more information, view Identity verification.
If you can’t complete online identity verification, you must submit certified copies of four identity documents and a signed consent form with your myCAV application. The correct documents, properly certified, will help your application avoid delays. For more information, view Records checks.
The Business Licensing Authority (BLA) will conduct checks with the Australian Criminal Intelligence Commission (ACIC), and other agencies to verify the information provided in the application. Any disputes about the accuracy of the results of the checks will be referred to ACIC.
Providing incorrect information
It is a serious offence for a person to knowingly make a false or misleading statement in relation to a licence application. Significant fines apply.
Unlicensed trading
Unlicensed motor car traders are liable for significant fines.
Fees
The combined application fee and first annual licence fee for 1 July 2023 to 30 June 2024 is $2,730.00.
This fee must be paid at the time of application. The application fee is non-refundable.
How to apply
You must use myCAV to apply for a motor car traders licence.
To start using myCAV, you must create your own myCAV account using a personal email address to verify your identity (or log into your existing account, if you already have one).
Complete and lodge your application in myCAV:
Start application
For more information, view About myCAV – Registration and licensing.
Additional documents required with the application
Individuals who are a director, secretary or partner, will be required to submit their own personal information and supporting documentation (including financial information where relevant) directly to the BLA.
You will also have the option to send a request to any other individual associates inviting them to provide their own information directly to the BLA.
You will need to specify the name and unique email address of the person in the myCAV application form, and an email will be sent to the person with instructions on how to complete. This must be completed within 14 days of the email being sent.
You will not be able to pay and submit the application for processing until all required information and documentation has been provided by all individuals associated with the application
Sole traders
For yourself and all individual persons named as associates in the application form, you must attach the following documents:
- If you cannot complete online identity verification:
For yourself, you must attach the following documents:
- A copy of a current bank statement confirming availability of funds for each bank account. The statement must show the account holder's nam eand cover a period of 3 months. .
- A copy of a current bank statement for any loan account including mortgages or a loan approval letter from the credit provider that covers a period of 3 months. .
- A completed Motor car traders sole trader deed of indemnity (Word, 389KB).
- A completed Motor car traders estimated cash flow projection for the first 12 months of trading template (Excel, 23KB) or Motor car traders estimated cash flow projection for the first 12 months of trading template (Word, 116KB). The BLA requires this document to demonstrate you have fully considered the costs of running a motor car business and have a clear view of the kind of profit you are likely to make over your first year of trade.
- If you are currently trading in any other business (e.g. panel beating, mechanical workshop or non-motor car related business), a copy of the balance sheet and profit and loss statement for the last financial year.
- Unless a licensed motor car trader has occupied the premises within the last six months prior to this application, for each of the proposed trading premises you must provide a current planning permit or a letter from the appropriate local council indicating that you can lawfully carry on a motor car trading business at each premises.
- Depending on the circumstances:
- Proof of lawful use of premises (e.g. copy of lease agreement, a letter/agreement from the owner/landlord indicating that you can carry on a motor car trader business at these premises, or proof of ownership such as council rates)
- Contract of sale
You will also be required to provide information to confirm your financial position to enable the BLA to assess whether you should be granted a licence. Refer to Declaration of personal finances below.
Partnerships
For each individual person who is a partner and each director of a company in the partnership, you must attach the following documents:
- If you cannot complete online identity verification:
- A copy of a current bank statement confirming availability of funds for each bank account. The statement must show the account holder's name and cover a period of 3 months.
- A copy of a current bank statement for any loan account including mortgages or a loan approval letter from the credit provider.
For the partnership, you must attach the following documents:
- A completed Motor car traders partnership and company deed of indemnity (Word, 1.2MB) signed by each partner.
- A copy of the last monthly statement for each bank account held by the partnership confirming the availability of funds.
- A copy of a current bank statement for any loan account or a loan approval letter from the credit provider.
- A current copy of the trading statement of the partnership (balance sheet and profit and loss statement - no older than six months from the date of this application.
- A completed Motor car traders estimated cash flow projection for the first 12 months of trading template (Excel, 23KB) or Motor car traders estimated cash flow projection for the first 12 months of trading template (Word, 116KB). The BLA requires this document to demonstrate you have fully considered the costs of running a motor car business and have a clear view of the kind of profit you are likely to make over your first year of trade.
- If the partnership or a partner is currently trading in any other business (e.g. panel beating, mechanical workshop or non-motor car related business), a copy of the balance sheet and profit and loss statement for the last financial year. A balance sheet is still required even if the partnership was only recently formed.
- Unless a licensed motor car trader has occupied the premises within the last six months prior to this application, for each of the proposed trading premises you must provide a current planning permit or a letter from the appropriate local council indicating that you can lawfully carry on a motor car trading business at each premises.
- Depending on the circumstances:
- Proof of lawful use of premises (e.g. copy of lease agreement, a letter/agreement from the owner/landlord indicating that you can carry on a motor car trader business at these premises, or proof of ownership such as council rates)
- Contract of sale
Each partner of the partnership will also be required to provide information to confirm their financial position to enable the BLA to assess whether you should be granted a licence. Refer to Declaration of personal finances below.
For all individual persons named as associates in this form, you must attach the following documents:
- If you cannot complete online identity verification:
Companies
For each director, you must attach the following documents:
- If you cannot complete online identity verification:
- A copy of a current bank statement confirming availability of funds for each bank account. The statement must show the account holder's name and cover a period of 3 months. .
- A copy of a current bank statement for any loan account including mortgages or a loan approval letter from the credit provider that covers a period of 3 months. .
For the company, you must attach the following documents:
- A completed Motor car traders partnership and company deed of indemnity (Word, 1.2MB) signed by each director.
- A copy of the last monthly statement for each bank account held by the company confirming the availability of funds.
- A copy of a current bank statement for any loan account or a loan approval letter from the credit provider.
- A current copy of the trading statement of the company (balance sheet and profit and loss statement) - no older than six months from the date of this application.
- A completed Motor car traders estimated cash flow projection for the first 12 months of trading template (Excel, 23KB) or Motor car traders estimated cash flow projection for the first 12 months of trading template (Word, 116KB). The BLA requires this document to demonstrate you have fully considered the costs of running a motor car business and have a clear view of the kind of profit you are likely to make over your first year of trade.
- If the company or a company director is currently trading in any other business (e.g. panel beating, mechanical workshop or non-motor car related business), a copy of the balance sheet and profit and loss statement for the last financial year. A company balance sheet is still required even if the company was only recently incorporated.
- Unless a licensed motor car trader has occupied the premises within the last six months prior to this application, for each of the proposed trading premises you must provide a current planning permit or a letter from the appropriate local council indicating that you can lawfully carry on a motor car trading business at each premises.
- Depending on the circumstances:
- Proof of lawful use of premises (e.g. copy of lease agreement, a letter/agreement from the owner/landlord indicating that you can carry on a motor car trader business at these premises, or proof of ownership such as council rates)
Each company director will also be required to provide information to confirm their financial position to enable the BLA to assess whether you should be granted a licence. Refer to Declaration of personal finances below.
For all individual persons named as associates in this form, you must attach the following documents:
- If you cannot complete online identity verification:
Declaration of personal finances
A sole trader, each partner in a partnership, or all directors of a company application, must provide information and supporting documentation to confirm their current financial position so that the BLA can determine whether the applicant has sufficient financial resources to trade in motor cars. A licence application cannot proceed without it.
Each person must provide details of assets, liabilities, income and expenses, and may be required to attach documentary evidence such as:
- proof of any income such as payslips, bank statement, dividends advice, share portfolio statement or similar
- rental income such as a rental agreement, copy of rent ledgers or bank statements (showing rent payments)
- savings, investment statements or share statements confirming ownership and the value
- proof of ownership of a vehicle or other asset
- credit card statements
- recent council rates notice for any property held
- any asset or liability
After you lodge your application
Processing time
To avoid delays, please complete the form correctly and attach all necessary documents. The average processing times last quarter were 57 days for sole trader, company and partnership licences.
You must not conduct business as a motor car trader unless the BLA grants you a licence.
Additional information
When considering your application, the BLA may require you to provide further information.
Communications such as requests for further information will be sent to you in myCAV. Please check the 'Notifications' in your myCAV account.
The BLA may refuse your application if you do not provide this within a reasonable timeframe.
Change of information
If there are any changes to the information you provide in your application after you lodge it, you must notify the BLA in writing the BLA enquiry form immediately on becoming aware of the change.
Interview
Once the BLA is satisfied that you have provided all the required information, a licensing officer will contact you for a telephone interview.
The officer will ask you a series of short-answer questions, designed to ensure you are familiar with your basic obligations as a licensed motor car trader.
The questions cover your legal obligations, such as statutory warranties and cooling off periods, as well as some of a general nature. You will also be asked questions about the kinds of activities you plan to engage in, such as retail, wholesale, auctions, motorcycles and wrecking.
To prepare for your interview, view Running your business.
Sharing your information
The BLA may need to give your information to:
- Victoria Police
- Consumer Affairs Victoria
- other law enforcement and regulatory bodies.
These organisations will make any enquiries about your application they consider appropriate, and report the results.
For privacy information, view Information and privacy - BLA.
Withdrawing your application
You can withdraw your application in myCAV at any time before it has been determined by the BLA.
Refusal of application
If your application is not successful, you will be notified in writing via your myCAV account.. You can appeal the decision by applying to the Victorian Civil and Administrative Tribunal (VCAT) within 28 days of the decision.
If the BLA refuses your application, you cannot trade as a motor car trader and you cannot lodge another application for two years, unless you get special permission from us.
If you have been refused previously but wish to reapply, Contact us.
Successful application
If your application is successful, you will receive a motor car trader’s licence with a unique Licensed Motor Car Trader (LMCT) number. You can view and print a copy of your licence certificate in your myCAV account.
Your licence is not transferrable, and is ongoing unless surrendered, suspended or cancelled. Once you are licensed, you should familiarise yourself with your ongoing obligations and licensing requirements.
Your details will also appear on the Public register of motor car traders.
Conditions on a licence
In some cases, the BLA may impose conditions on licensees. Examples of typical conditions include:
- requiring specified documentation
- making the licence subject to planning permission
- limiting a licence to wholesale trading
- requiring a bank guarantee.