Any 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 Commissioner 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.
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
Key requirements under the Motor Vehicle Dealers Act
- Ensure your licence is current and that you have a current certificate of authorised premises for your place of business.
- Ensure that the motor vehicle salespersons and yard managers you employ have a current licence issued by the Commissioner for Consumer Protection.
- Ensure that you have a dealer's register (Form 1) for each authorised premises you operate and that it is updated daily.
- Use the content from prescribed forms set out in the Motor Vehicle Dealers (Sales) Regulations 1974, when displaying a vehicle for sale and when you sell a vehicle. Note that additional rows can be inserted in the Form 1 to record additional transactions.
- Ensure sales contracts include the particulars, terms, and conditions prescribed in the Regulations.
- Ensure a licensed motor vehicle dealer or yard manager is in charge of each separate place of business in a multi-site operation.
- Establish and maintain office systems to keep accurate records, including systems for a transaction register, trust account (where applicable) and business account.
- Ensure motor vehicle sales premises, including signage, are approved by the relevant local government authority.
- Know your responsibilities under the Motor Vehicle Dealers Act and Regulations. Dealers can view the Motor Vehicle Dealers Act free online on the Western Australian Legislation website.
- Keep your sales stock within the boundaries of your licensed premises.
- Publish your dealer name and licence number in all advertisements.
- Open a trust account if you engage in consignment selling.
We also recommend that you:
- Display your licence in a prominent position so that it can be seen clearly by the public.
- Ensure motor vehicle salespeople's licences are available to show anyone involved in a motor dealing transaction.
- Maintain licensed employees' details, including the expiry date of their certificates, in the dealership's employment register.
- Initiate and maintain a staff training program so that all salespersons are aware of their responsibilities to customers in the selling process.
- Inform the Commissioner for Consumer Protection in writing of any change of employment within 14 days of the change taking place.
- Inform the Commissioner for Consumer Protection in writing of any change of residential address within 14 days of the change taking place.