What is a motor vehicle dealer

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Motor industry

Motor Vehicle Dealers Licence

The Motor Vehicle Dealers Act (MVDA) requires a person/s or company engaged in the business of buying or selling certain vehicles must hold a dealer's licence.

This legal requirement also includes someone:

  • who acts as an agent for others in buying or selling vehicles;
  • whose business includes buying vehicles for wrecking;
  • who finances the buying of vehicles;
  • who engages in the business of auctioning vehicles;
  • who is a hire car operator; and
  • who operates a car market. (A car market allows private individuals - that is people other than the market operators - to sell their vehicles by private treaty.)

Therefore, anyone who engages in any of these activities must apply for a licence.

The Commissioner for Consumer Protection administers the licensing scheme and approves licence applications for motor vehicle dealers, yard managers, salespersons and car market operators.

The Board may exempt financiers, auctioneers and car hire operators from holding a licence in certain circumstances.

Sellers of buses, tractors, farm machinery or earthmoving-type machinery are generally not dealers for the purposes of the MVDA.

Motor cycles and all two-wheeled self-propelled vehicles (including off-road motor cycles) with a power capacity over 0.2 kilowatts are vehicles to which the Act applies.

Motor vehicle dealers

A person who carries on any class or description of business of buying or selling vehicles in Western Australia is required to be licensed as a motor vehicle dealer. This includes a person whose business consists of buying vehicles for wrecking, financing, auctioning or hiring and a person who is a vehicle broking agent.

The type of vehicles for which a person must hold a motor vehicle dealer’s licence to buy or sell include:

  • passenger vehicles
  • motorcycles
  • caravans
  • campervans
  • four wheel drive vehicles
  • trucks
  • commercial vehicles
  • camper trailers

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