Changes to motor dealer and repairers laws

New regulation from 1 September 2025

The Motor Dealers and Repairers Regulation 2025 starts 1 September 2025 and introduces important changes to support a modern, fair and safe automotive industry in New South Wales.

The Regulation also supports changes to the Motor Dealers and Repairers Act 2013 from 1 September 2025.

The Act and the Regulation provide the regulatory framework for the buying, selling and repair of motor vehicles.

Why is the regulation changing?

These changes are being made to:

• align the Regulation with evolving industry practices
• improve consumer protections
• provide clearer compliance requirements for licensees
• reduce administrative demands on licensees  
• establish appropriate standards of conduct and protection for motor dealers, motor vehicle repairers, and motor vehicle recyclers.

The remake follows public consultation, including feedback via the Have Your Say platform and targeted industry engagement.

Changes for licensed motor dealers

Online sales

There are several changes for motor dealers who sell motor vehicles online.

Licensed motor dealers will have until 1 December 2025 to comply with the new requirements. This includes notifying NSW Fair Trading of any current online business details.

During this time, NSW Fair Trading will take an educational approach to compliance to provide guidance on the necessary steps to remain compliant.  

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 NSW.

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.

Online motor dealers must meet new website requirements

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'

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 let buyers inspect the vehicle before purchase, 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.

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.

Cooling off periods for online sales

The cooling off period for dealer-financed online sales is from the time the purchaser enters into the contract until 5pm the next day.

Retention of dealer notices

Licensed motor dealers must retain dealer notices for 6 years from sale. This is an increase from the previous 3-year requirement.

This encourages stronger accountability from dealers to maintain accurate records, ensuring stronger customer protection. 

Dealer guarantees for trailers and towable vehicles   

The exemption for trailers and towable vehicles from the dealer guarantee will be removed from 1 September 2026.

Motor dealers have 12 months to prepare for the change at which time they must repair defective trailers or towable vehicles that they sell.

‘Defective’ refers to trailers or towable vehicles that are not fit for purpose.

For example:

• structural defects, such as a bent chassis or cracked welds
• faulty braking system
• lighting or wiring defects
• axle or suspension defects.

Dealer guarantees for trailers and towable vehicles are based on the age of the vehicle.

For a trailer or towable vehicle no more than 10 years old, the time limit is:

• 6 months for a new motor vehicle
• 3 months for a second-hand motor vehicle.

Trade shows

Motor vehicle dealers who do not hold a licence in NSW may be able to participate in a NSW trade show, provided the show is a 'declared trade show'.

The NSW Fair Trading Commissioner can now declare trade shows, replacing the more onerous requirement for a Ministerial Order. Once the trade show is declared, the applicant and/or trade show organiser will be notified, and a trade show notice will be published on the NSW Government website.

Exemptions from licensing requirements may be subject to conditions set by the Regulation or the Commissioner.

Changes for motor vehicle repairers

Qualifications for motor vehicle tradesperson certificates (MVTCs) 

The qualification requirements for MVTCs are no longer prescribed by the Regulation.

The Fair Trading Commissioner will specify the qualifications, experience or other criteria for license and MVTC applications by notice on the NSW Government website. This ensures qualification requirements keep pace with changes in the VET system.

Changes for motor vehicle recyclers

Motor vehicle recyclers cannot use cash or deal in unidentifiable vehicles

A motor vehicle recycler must not buy a motor vehicle, motor vehicle part or accessory with cash, cheque payable to cash, or in kind with goods or services.

Motor vehicle recyclers are prohibited from buying a motor vehicle where the unique identifier has been removed, obliterated, defaced, or altered. They are also prohibited from selling or disposing of an unidentified vehicle.

This is to reduce the trade of stolen goods.

Other changes for licence holders

More flexibility for record keeping

Licence holders still need to keep records, but the Regulation provides flexibility in the way licensees record information.  

The compulsory use of these forms has been removed from the Regulation:

• Form 1 Motor Dealer's Register
• Form 2 Motor Vehicle Repairer’s Register
• Form 3 Motor Vehicle Recycler’s Register
• Form 3A Motor Vehicle Recycler’s Register (Whole Vehicle)
• Form 4 Motor Vehicle Repairer's Register (Trailers and Towable Recreation Vehicles)

Instead, the way this information is recorded can be decided by the licence holder, but the information must be kept as physical or electronic records. Records need to be accessible at the premises where the repairer’s licence is granted.

Licensees may continue using the existing forms to comply with record keeping requirements should they choose. Template forms can be found here: 

• Motor dealers register (Form 1) 
• Motor vehicle repairers register (Form 2)
• Motor vehicle recyclers (Form 3)
• Motor vehicle recyclers register whole vehicle (Form 3A) 
• Motor vehicle repairers register trailers and towable recreation vehicles (Form 4)

The compulsory use of the notice for cooling off period for dealer-financed vehicles has been retained in the Regulation to assist with the new requirements for online motor dealing.  

Customer claims to the Compensation Fund

The Motor Dealers and Repairers Compensation Fund provides financial protection for consumers who purchase or sell a vehicle through a motor dealership or have repair work completed on their vehicle by a motor vehicle repairer. The fund is financed by licensing fees from dealers and repairers and NSW Fair Trading manage the fund and assesses all claims.

Customer claims to the Compensation Fund will be expanded to vehicles over 35 years and motorcycles over 10 years of age, and motorcycles that are not substantially used for private purposes. Trailers and towable vehicles are included, and the maximum claim amount has increased from $40,000 to $100,000.

Tougher penalties for non-compliance

Penalties have increased for offences including odometer tampering and unlicensed trading. NSW Fair Trading will actively monitor and enforce compliance.