Working as a motor dealer – business obligations in NSW

When a motor dealer licence is required

In NSW, you need a licence to run a business as a motor dealer. You need a motor dealer licence if your business involves buying, selling or exchanging motor vehicles as a:

• retailer, or
• wholesaler.

A wholesaler cannot sell vehicles to the public.

You must only offer or display vehicles at the business named on your licence (also known as ‘notified premises’), at trade show displays, or on a website where you conduct online sales as a licensed online dealer. 

A licensee may manage the business themselves or nominate another person to manage the business on their behalf. When a manager is employed to run the business, they must complete a manager’s consent form.

If you run a motor dealer business without a licence you could be fined $6,600 or face prosecution with a maximum penalty of $110,000.

If you continue to operate without a licence, you could face a penalty of up to $110,000, imprisonment for 12 months, or both.

Court prosecution may also result in motor vehicles, or any proceeds of a sale being confiscated.

Laws you must follow when selling vehicles

There are federal and state laws you must follow as a motor dealer business.

This page explains the rules you need to follow in simple language. You should refer to the legislation for specific legal requirements.

Australian Consumer Law

Under Australian Consumer Law (ACL), most products and services come with automatic consumer guarantees that the product or service purchased will work and do what is expected.

Motor dealers must provide a guarantee of clear title for any vehicle sold. You must also conduct a Personal Property Security Register check and record particulars on a sales notice before sale.

If your business fails to meet any of these guarantees, your customers have the right to:

• a repair, replacement, or refund
• cancel a service
• reimbursement for damages and loss.

Learn more about consumer guarantees under the ACL.

Motor Dealers and Repairers Act

The Motor Dealers and Repairers Act 2013 sets out the rules that must be followed by all motor vehicle dealers in NSW.

The Act provides protection for consumers, outlines appropriate standards of conduct, and prevents misleading or dishonest dealings.

Motor Dealers and Repairers Regulation

The Motor Dealers and Repairers Regulation 2025 explains the rules for motor vehicle dealers in NSW.

It includes detailed information on:

• licensing
• recordkeeping
• fees
• business conduct.

Selling vehicles online

If you sell vehicles online, there are specific requirements you must meet.  

These requirements ensure transparency and help protect buyers purchasing vehicles online. 

Motor dealers must notify NSW Fair Trading that they sell online

This includes licensed motor dealers that sell wholly or partly online.  

Your notification must include:

• the URL address of the website used for online sales
• the address of premises intended for storage of motor vehicles or records
• the address of premises intended for use as an office
• the address of premises intended for storage of motor vehicles or records, and for use as an office must be in New South Wales.

You must notify NSW Fair Trading at least 20 business days before starting to sell online.  

To notify Fair Trading, download and complete the Change to Notified Premises form.

You can submit the form in person at a Service NSW Centre, or by email to businesslicensing@customerservice.nsw.gov.au.

Website requirements for online motor dealers  

Motor dealers selling online must include ‘.au’ at the end of their website URL address.  

Example of a correct website URL:

'www.joescars.com.au'

Examples of an incorrect website URL:

'www.joescars.com'

'www.joescars.net'

'www.joescars.ai'

All online listings must comply with Australian Consumer Law, including clear title guarantees and accurate odometer and damage disclosures.  

Motor dealers selling online must also include their motor dealer licence number on their website and advertising material.

Online motor dealers must have vehicles available for inspection

Online motor dealers must provide a prospective online purchaser an opportunity to carry out an inspection of the vehicle, either where it is usually stored or at another agreed location.

Online motor dealers must also allow buyers to inspect the vehicle at delivery or collection, before the buyer takes possession of the vehicle.

If you do not provide opportunities for prospective online purchases and buyers to inspect the vehicle you can be fined $550 or prosecuted up to $2,200.

Limits on deposits for online motor dealers

Online motor dealers can only take a deposit of up to 10% of the vehicle's price before the customer takes possession of the motor vehicle.

Online motor dealers who require a deposit above 10% of the purchase price can be fined $1,100 or prosecuted up to $11,000.

Signage

You must have a sign showing your business licence details at your nominated place of business. It must be visible to everyone approaching the business.  

In addition, if you advertise or sell vehicles online, you must display your motor dealer licence number clearly on your website or digital sales platform.  

Your sign must display:

• your name as it appears on the licence  
• the words ‘licence number’ (or an abbreviation such as ‘Lic. No.’) followed by the licence number itself  
• if online, this information must also appear on your website and any other digital platform where vehicles are advertised or sold  

If your business name appears on the licence, it can also be included on the sign, but not in place of the licensee name.

If you do not display the correct signage, you can be fined $550 or prosecuted up to $2,200.

Recordkeeping

The same record-keeping, sales notice, and PPSR search requirements apply to online sales as they do to physical dealership transactions. 

Motor dealer register

You need to keep a record of motor vehicles that are bought and sold.

You can keep a physical register or a digital one. Our template forms can be used to ensure you remain compliant - motor dealers register (Form 1)

Details of each vehicle must be recorded with its own entry number.

Register entries must include the:

• date you received and sold the vehicle
• name and address of the person who supplied and purchased it (if trade owner, include motor dealer licence number or if private purchaser, include driver licence number)
• vehicle make, model, date built, and registration number (if any)
• engine and vehicle identification number (VIN)
• odometer reading at the time of purchase and sale
• type and serial number of sales notice.

You must add entries in your register within one business day of the transaction.

Registers must be kept for 6 years after the last entry was made.

Records need to be accessible at the premise where the repairer's licence is granted. If you operate from more than one licensed premises, you must keep a register at each place.

Selling used vehicles

There are rules you must follow when you are selling a motor vehicle in NSW. This includes using certain forms, performing security checks, and adhering to cooling off periods (where applicable).

Motor dealer notices

Vehicles sold with a number plate (including demonstrator vehicles) must also include a roadworthy inspection report. This does not include vehicles sold at auction.

There are different notices for different types of vehicles. Make sure you use the right form.

You cannot sell a motor vehicle without a motor dealer sales notice. This notice must be completed and signed by both the dealer and the buyer, and a copy given to the buyer.

For online sales, motor dealers must make the required report, notice or document available on their website.

You must keep motor dealer notices for 6 years after a sale is made.

Where notices are produced digitally, all copies including signed must be kept and filed by entry number order and be available on demand for compliance inspection.

You can be fined $1,100 or prosecuted up to $2,200:

• if a motor dealer notice is not displayed or completed correctly
• if the buyer is not given a copy of the motor dealer notice and/or roadworthy inspection report
• if you fail to keep appropriate records for the designated 6-year period.

Motor dealer notices for damaged vehicles

Vehicles with existing damage must clearly display a notice to inform buyers.

This includes new vehicles that have suffered water damage, and body or frame damage.

A current roadworthy inspection report must also be given to the buyer at the time of sale, or if purchased at an auction, within 7 days.

There are different notices for different types of vehicles. Make sure you use the right form for the vehicle you’re selling.

Personal property security register

If you deal in second-hand vehicles, you must conduct a Personal Property Security Register (PPSR) search and include the search number on vehicle notices prior to sale.

The PPSR is a national database of security interests in personal property. This includes vehicles.

Use the PPSR online or call 1300 007 777 to find out if a vehicle has:

• money owing on it
• been stolen
• been written-off.

You must include the PPSR search number on the notice of any used vehicle sold.

You can be fined $1,100 or prosecuted up to $2,200 for failing to keep appropriate records.

Under the ACL you can also be fined $5,500 for using a false PPSR number, or prosecuted up to $10,000,000 as a corporation, or $500,000 as an individual.

For more information, see the Personal properties security for motor dealers page.

Selling vehicles at auction

For a vehicle to be sold at an auction, an auction notice (Form 11) must be displayed in the vehicle and given to the buyer when the vehicle is delivered.

Vehicles owned by a dealer that are being sold at an auction are covered by consumer guarantees under the ACL.

Vehicles being sold on behalf of an owner (on consignment) at an auction do not come with dealer or consumer guarantees, however they still need a guarantee of clear title.

Selling vehicles at a trade show

If you want to offer, display or advertise vehicles for sale at a trade show, you or your selling agent must hold a NSW motor dealer licence.

Interstate dealers and manufacturers

Trade show organisers can apply to the NSW Fair Trading Commissioner for a temporary exemption to allow interstate businesses to offer or display motor vehicles at a trade show without holding a NSW motor dealer licence.

Applications must be submitted at least 8 weeks before the starting date of the trade show and provide sufficient reason to be there.

Interstate dealers who are granted the exemption:

• can only make or receive offers, but are not allowed to sell vehicles or take deposits
• must display signage that clearly shows:
  • they normally do business outside of NSW
  • their registered business name, address, and interstate licence number (if applicable).

For more information about exemption applications, refer to the trade show guidelines.

To apply for an exemption, email NSW Fair Trading at licensing.exemptions@customerservice.nsw.gov.au.

Vehicle finance and cooling off period

If someone buys a vehicle using a loan you arranged, there is a 'cooling off period' of one business day. This allows time for the buyer to change their mind without penalty.

The cooling off period for online sales will be from the time the purchaser enters into the contract until 5pm the next day.

You must complete a cooling off period notice with information about the dealer, vehicle, and credit provider.

The buyer must sign the notice. They can also choose to waive their right to a cooling off period on this form.

Consignment sales

A consignment sale is where a licensed motor dealer (consignee) agrees to sell a vehicle on behalf of an owner (consignor).

To do this you must have a written consignment agreement that includes:

• the name, address, and licence number of both parties
• a description of the vehicle, including registration number or vehicle identification number
• details of any loan, including the financial institution and amounts owed, or a statement that there is no claim against the vehicle
• the agreed price to be paid to the owner
• directions for payment of the agreed price, including any amount needed to pay money owed
• the start and end date of the consignment period.

A copy of the consignment agreement must be given to the owner and produced on request by an authorised officer.

After the sale, you must pay the owner the agreed sale amount (less any commission).

You can be fined $1,100 and prosecuted up to $2,200 if you fail to keep record of a consignment agreement.

Trust account requirements

You need to maintain a trust account at an authorised financial institution in NSW for any money received from consignment.

Once the vehicle is sold, you must deposit the full sales price into the account by the next business day.

Money can come out of the trust account to pay:

• the owner or credit provider listed in the consignment agreement
• a debt due to you (for commission or other charges) from the seller.

Payment from the account must be made within 14 days.

The trust account must be audited every 12 months, and you must keep a trust receipt book, deposit book, and cash book or digital equivalents. Records of the account must be kept for at least 6 years after the last entry was made.

You can be fined up to $1,100 or prosecuted up to $2,200 if you fail to properly maintain a trust account.

Advertising

If you publish advertisements for motor vehicles on sale, you have certain obligations under the ACL. This applies to both print and online advertising of new, second-hand and demonstrator vehicles.

Suspicious goods

If you suspect goods have been stolen or illegally obtained, you must inform the Commissioner. Failure to do so is an offence with penalties of up to $2,200.

Use our online contact form to inform the Commissioner of suspected stolen or illegally obtained goods.

If an authorised officer (such as a NSW Police officer, Transport NSW officer or a NSW Fair Trading investigator) believes a motor dealer is in possession of a motor vehicle, part, or accessory that has been stolen or illegally obtained, the officer can issue a non-disposal notice.

A non-disposal notice stops you from altering, selling, or disposing of the suspicious goods for a period of 14 days and can be further extended by application to the Local Court.

Failure to comply with a non-disposal notice can result in a penalty of up to $55,000.

Odometer tampering

Do not tamper with a vehicle odometer.

It’s against the law to interfere with an odometer reading by:

• altering the reading
• removing or replacing the odometer, or
• stopping it from working in any way.

You can only repair or replace an odometer if the Commissioner is notified using the approved form, and the odometer reading is restored to reflect the accurate reading of the motor vehicle.

You can be issued with a penalty notice of $5,500 or face prosecution with a maximum penalty of $55,000.

If convicted by a court, you may also be liable to pay compensation to customers for any losses incurred between the sale price and fair price of the vehicle at the time of sale.

Ask a question

If you have questions about these changes and how they may impact you, please contact NSW Fair Trading on 13 32 20.

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