If you're someone who has several unused cars in your garage, you might be thinking about selling them for hefty cash. However, do you know how many cars you can sell in NSW each year without a dealer's licence?
In this article, we'll talk about this exact number. We'll also talk about the dealer's licence and how you can get one.
Number of Cars You Sell Without a Dealer's Licence
You can sell a maximum of four cars in any twelve-month period without a dealer's licence in NSW. However, certain requirements must be met before you can do this:
- The car must be registered and roadworthy.
- You can only sell cars that are registered in your name.
- You must not be acting on behalf of a motor dealer.
- You cannot sell cars as part of your business.
- You must disclose to the buyer that you are not a licensed motor dealer.
If you meet all of the above requirements, then you can sell up to four cars per year in NSW without a dealer's licence. If you want to exceed this number, then you will need to obtain a dealer's licence.
But... There's an Exception
Under the Motor Vehicle Act, a dealer is classified as "a person who carries on the business of dealing in motor vehicles as a retailer or on a wholesale basis".
Therefore, if you happen to own a collection of more than four vehicles that you wish to sell, you do not have to get a dealer's licence for that.
But keep in mind that you need to demonstrate to the consumer protection authorities that you are not operating as a car dealer, but rather just selling your personal collection of cars.
However, if you decide to be in the business of acquiring and selling cars, you will need a license. Fortunately, getting a dealer's licence isn't too hard to get.
What is a Dealer's Licence?
A motor dealer's licence (known as a dealer's licence) is a requirement for those in the business of buying and selling cars.
It regulates the industry and is intended to give consumers greater confidence in getting what they expect. For example, they should receive the title to the vehicle they are paying for.
This regulation also protects consumers from scams and frauds, such as:
- Unwillingly buying a stolen car.
- Paying for a car with a tampered odometer.
- Getting a vehicle that could be repossessed by the bank or any financial institution.
Buying from a registered dealer also gives the consumer some assurance and buyer protection in case the car breaks down within the warranty period.
How Do You Get a Dealer's Licence
As per service.nsw.gov.au guidelines, you have to be eligible to obtain a Motor Dealer's Licence.
The eligibility criteria are as follows:
- Be at least 18 years of age.
- Be considered fit and proper for the purposes of the licence (NSW Fair Trading and police record checks).
- Not be disqualified from holding a licence as a result of disciplinary action.
- Not be a controlled member of a declared organisation.
- Not have been found guilty, in the past 10 years, of a motor vehicle stealing offence.
- Not be bankrupt.
- Have sufficient financial resources to carry on your business in accordance with the requirements of Fair Trading.
- Have approval from the relevant local council.
If you tick all these boxes, you may apply online by following the steps outlined on the Service NSW website.
Conclusion
Without a dealer's license, you can sell up to four cars privately in NSW.
However, if you happen to own a collection of 5 or more cars that you wish to sell, you can also do so but be prepared to demonstrate to the consumer protection authorities that you own those cars and are not operating as a dealer.
Becoming a car dealer is an option if you are eligible and wish to carry out buying and selling cars for profit. To do so, simply follow the guidelines on the Service NSW website.
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