How to get a car dealer licence in NSW
To buy, sell or exchange cars as a business in New South Wales you need a motor dealer licence from NSW Fair Trading, applied for online through Service NSW. A new 1-year licence for one premises costs $1,865 online in 2026-27, and you can choose a 1, 3 or 5-year term.
- You need a motor dealer licence to buy, sell or exchange vehicles as a retailer or wholesaler, including online.
- Selling or offering more than 4 vehicles to non-dealers in 12 months presumes you are a dealer.
- You must be 18 or over, fit and proper, and have sufficient financial resources. No training course is listed.
- A new retail licence for one premises costs $1,865 (1 year), $3,049 (3 years) or $4,913 (5 years) online in 2026-27.
- Unlicensed dealing can bring a penalty notice or prosecution with a maximum penalty of $110,000.
Who needs a motor dealer licence in NSW
You need a licence if your business involves buying, selling or exchanging motor vehicles as a retailer or a wholesaler. That includes cars, motorcycles, caravans and some trailers, and it includes online dealers who offer and sell vehicles on their website.
Under the Motor Dealers and Repairers Act 2013, selling or offering more than 4 vehicles to non-dealers in 12 months presumes you are carrying on a dealer business unless you show otherwise. The count is a guide, not a safe harbour: selling 4 or fewer doesn’t rule out being found to be a dealer.
- You don’t need a licence for vehicles that don’t carry goods or passengers on public roads (such as agricultural equipment), or vehicles that can’t be registered in NSW.
- Vehicles over 4.5 tonnes fall under the Heavy Vehicle National Law instead.
Licence types
Individuals and corporations can both apply. A corporation applies with its ACN.
| Licence | What it lets you do |
|---|---|
| Motor dealer licence | Buy, sell and exchange vehicles with the public, from licensed premises or online. |
| Motor dealer wholesaler licence | Trade with other dealers and financiers only. You can’t sell direct, or through auction, to the general public. No compensation fund contribution is charged. |
Eligibility and fit and proper rules
- You must be at least 18.
- You must be a fit and proper person. NSW Fair Trading runs checks, including financial and police checks.
- You must not be a controlled member of a declared organisation, disqualified, or an undischarged bankrupt.
- You must have sufficient financial resources to run the business.
- The Act lets NSW Fair Trading consider fraud or dishonesty convictions from the past 10 years.
Training and qualifications
NSW Fair Trading doesn’t list a mandatory training course for a motor dealer licence. The checks are about who you are (fit and proper, financial resources), not a qualification. Check with NSW Fair Trading if your business also does repair work, because repairers and tradespeople have their own licence and certificate rules.
Fees (2026-27)
Fees include a non-refundable processing fee of $277, or $249 online. The rest is a fixed fee plus a compensation fund contribution for each place of business. With more than one premises you pay the fixed fee and compensation fund contribution for each one, but the processing fee only once. Fees may rise with CPI each 1 July.
| New licence, one premises | 1 year | 3 years | 5 years |
|---|---|---|---|
| Motor dealer licence (online) | $1,865 | $3,049 | $4,913 |
| Motor dealer licence (paper) | $1,893 | $3,077 | $4,941 |
| Wholesaler licence, 1 year | $665 online, $693 paper |
Renewal and restoration fees are lower than new-licence fees (a 1-year renewal for one premises is $673 online). A replacement licence costs $58. NSW publishes these amounts as its 2026-27 fees, but some listings label the same figures 2025-26, so check the current table with NSW Fair Trading before you pay.
Processing time
NSW Fair Trading doesn’t publish a processing time for dealer licences. The online form takes about 20 minutes. Allow time for the police and financial checks and apply well before you plan to trade.
Premises and business requirements
- Each place of business is listed on the licence, and each one attracts its own fixed fee and compensation fund contribution.
- Your dealer register must be kept at the licensed premises, with a register at each premises if you have more than one.
- Have your ABN or ACN, business details and proof of identity ready before you start the application.
Salespeople
NSW Fair Trading’s licence pages don’t describe a separate registration for car salespeople. Check with NSW Fair Trading before you hire, and make sure anyone who does repair work for you holds the right tradesperson certificate.
Ongoing obligations
- Dealer register: keep a record of every vehicle you buy and sell, on paper or digitally, including buyer and seller details, VIN, engine number and odometer readings. Entries go in within 1 business day, and registers are kept for 6 years after the last entry. Since 1 September 2025 the prescribed Form 1 is optional, but the record isn’t.
- Dealer guarantee: used cars under 10 years old with under 160,000 km carry a guarantee of 3 months or 5,000 km, whichever comes first. It can’t be waived.
- Compensation fund: retail licences pay a contribution to the Motor Dealers and Repairers compensation fund with the licence fee. It covers buyers’ losses when a dealer doesn’t meet their obligations.
- Online sales: the same record-keeping, sales notice and PPSR search rules apply online as in the yard.
- Australian Consumer Law: consumer guarantees apply on top of the dealer guarantee.
Penalties for unlicensed dealing
If you run a motor dealer business without a licence, you can be issued a penalty notice or prosecuted. The maximum penalty is $110,000, and for a second or later offence $110,000, 12 months’ imprisonment or both. A court can also order you to forfeit the proceeds of cars sold. NSW Government pages quote the penalty notice as $5,500 in one place and $6,600 in another, so check the current amount with NSW Fair Trading.
How to apply
Apply online through Service NSW. Choose retail or wholesaler, and a 1, 3 or 5-year term.
What software you’ll need
Once you hold the licence, the paperwork is ongoing: a record of every car you buy and sell, the right warranty terms on each contract, PPSR checks, and licence and staff expiry dates. Our car dealer compliance tools log PPSR, odometer, written-off and stolen checks on every car, track licence and salesperson expiry dates, and keep a full audit trail.
The NSW dealer register and contract pack is coming next. Queensland is live now.
For the detail, read our guides to the NSW dealer stock register and NSW statutory warranty.
How to apply for a motor dealer licence in NSW
- Check you need oneYou need a licence if you buy, sell or exchange vehicles as a business. Selling or offering more than 4 to non-dealers in 12 months presumes you are a dealer.
- Pick the licence type and termChoose a retail motor dealer licence or a wholesaler licence, and a 1, 3 or 5-year term.
- Get your documents readyHave proof of identity, your name, address and date of birth, business details, your ABN or ACN, and each premises address.
- Apply online through Service NSWThe online application takes about 20 minutes. Applying online saves $28 on the processing fee.
- Pay the feePay the processing fee once, plus the fixed fee and compensation fund contribution for each premises. A 1-year retail licence for one premises is $1,865 online in 2026-27.
- Pass the checksNSW Fair Trading runs police and financial checks to confirm you are fit and proper. Don’t trade until the licence is issued.