Consignment selling licensing changes and updated dealer training - Motor vehicle industry bulletin 16
13 March 2023
From Wednesday 1 March 2023, there is a new dealer licence category (Category E) in the Motor Vehicle Dealers (Licensing) Regulations 1974 for dealers who sell vehicles on consignment.
Do I need to do anything?
Dealers do not need to do anything as a result of this change. Dealers authorised to sell vehicles on consignment can continue to operate as normal. See below for how the changes may affect you.
What is changing?
Dealers selling on consignment will be subject to stronger checks of sufficient resources at each application. The new Category E will assist with educating dealers on the different consignment selling requirements. There is no change to the existing obligations dealers have when selling on consignment.
From 1 March 2023, your renewed licence will look different. For dealers authorised to sell on consignment, Category E will be attached as a separate category. For dealers not authorised to sell on consignment, there will no longer be a condition prohibiting consignment selling on your licence. The removal of the condition does not mean that the dealer is authorised to sell on consignment.
Dealers must not sell vehicles on consignment unless they have Category E listed on their licence.
How will the changes affect me?
Dealers authorised to sell on consignment:
- You do not need to do anything to get Category E added to your certificate and can continue to operate as normal.
- Your licence will continue to be valid until expiry or renewal.
- At the next renewal, Category E will be added to your licence if your application is granted.
Dealers not authorised to sell on consignment:
- You do not need to do anything.
- Your existing licence remains valid, and the condition prohibiting consignment selling remains in place.
- At your next renewal, the condition prohibiting consignment selling will be removed. This does not mean you can start selling on consignment as only dealers with Category E will be authorised for consignment selling.
Becoming authorised to sell on consignment after 1 March 2023:
- You can request the addition of Category E to your licence using the Request to add Category E form. The Commissioner for Consumer Protection must be satisfied you have sufficient resources to meet the obligations of selling vehicles on consignment.
- Our licensing team will arrange for the removal of the condition prohibiting consignment selling from your licence when Category E is added.
- You will be required to provide the Commissioner with information about your trust account and the name of your auditor.
Updated dealer training course
The dealer training course is being updated to include more detailed information about the obligations a dealer has when undertaking consignment sales on behalf of members of the public. This course must be successfully completed before applying for a dealer’s licence.
Dealers with an existing licence will not be required to complete the updated training. However, dealers are encouraged to visit our Consignment selling of vehicles webpage to refresh their knowledge of obligations and requirements when selling on consignment.
More information about selling vehicles on consignment can be found on our Consignment selling of vehicles page.
You can check your licence status using our online licence and registration search.
If you have questions about the effect of the changes, please contact our licensing team by calling 1300 30 40 64 or by email.
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