The Motor Vehicle Traders Act 2011 requires that anyone who buys, sells or exchanges 6 or more vehicles in a year must be licensed as a motor vehicle trader. It also establishes eligibility criteria to ensure that only suitable people are licensed. A person does not deal in motor vehicles and does not need to be licensed simply because they are an employee of a licensed motor vehicle trader.
When purchasing a car from a licensed trader, you are provided with a number of important protections that are not available when purchasing privately.
The Act requires that motor traders provide a statutory warranty on certain vehicles which guarantees that the vehicle is fit for purpose and in working order. The trader may have to replace or repair parts, or offer an exchange or refund on the vehicle, if it does not comply with the warranty.
Where a used vehicle is offered for sale, a pre-sale disclosure statement must be provided. This document sets out specific details of the vehicle, including a list of any faults in the vehicle that the trader is aware of.
The Act also establishes a number of offences, including for provision of false or misleading information, and creates a range of enforcement powers and remedies to protect consumers.
It is a requirement by law that all Motor Vehicle Traders clearly display their Motor Vehicle Trader's License number. You can identify a registered Motor Vehicle Dealer/Trader by their four-digit (e.g. 3765) Government issued Motor Vehicle Trader's License Number. If you encounter a Motor Vehicle Trader who is unable to provide or is not displaying a Motor Vehicle Trader's license number or if you have any doubts regarding a Motor Vehicle Trader, please contact the Office of Consumer Affairs and Fair Trading on 1300 65 44 99.
For the purpose of the Act, the definition of a 'motor vehicle' covers:
The Act does not cover:
The Act contains a number of consumer protection measures, including:
Forms and information: