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How to get a car dealer licence in Victoria

In Victoria a car dealer licence is called a motor car trader licence, and you need one if you buy, sell or exchange 4 or more cars in 12 months or otherwise trade as a business. You apply through myCAV to the Business Licensing Authority, and the 2026-27 application fee plus first annual fee is $2,917.80 for a sole trader or $2,965.20 for a company or partnership.

Written by
TradeBeat, a licensed QLD motor dealer
Last reviewed
Applies to
Victoria
The short version
  • Trading 4 or more cars in any 12 months means you are deemed to need a motor car trader licence.
  • You must be 18 or over, a fit and proper person, not disqualified, and know the Motor Car Traders Act and Regulations.
  • The 2026-27 application fee is $1,184.70 plus a first annual fee of $1,733.10 (sole trader) or $1,780.50 (company or partnership).
  • The target is 85% of applications decided within 56 days; the average for April to June 2026 was 35 days.
  • Unlicensed traders face maximum penalties of up to $19,000, or 15% of the sale price, for each car.

Who needs a motor car trader licence

If you buy, sell or exchange, or offer to, 4 or more motor cars in any 12-month period, you are deemed to need a licence unless you can prove you weren’t carrying on, or presenting yourself as carrying on, a car trading business in that period.

The count isn’t a free pass. If you are carrying on the business of trading in cars, you may need a licence even if you trade fewer than 4 in 12 months.

Licence types

There is one motor car trader licence, applied for as a sole trader, a company or a partnership. The licence names the premises you trade from, and it only authorises trading there to the extent local planning rules allow.

Eligibility and disqualification

  • You must be at least 18 and a fit and proper person.
  • Disqualifying circumstances can stop you holding a licence, being a partner or director of a trader, or working in a customer service role.
  • If a disqualifying circumstance applies, you can apply to the Business Licensing Authority for permission. A separate permission application fee applies; check the current amount with Consumer Affairs Victoria.

Training and knowledge

Victoria doesn’t require a training course or qualification. You must, however, show you have sufficient knowledge of the Motor Car Traders Act 1986 and the Motor Car Traders Regulations 2018 to run the business.

Fees (2026-27)

ItemSole traderCompany or partnership
Application fee (non-refundable)$1,184.70$1,184.70
First annual licence fee$1,733.10$1,780.50
Total at application$2,917.80$2,965.20
Permission application (if disqualified)Check with CAVCheck with CAV
Late annual statement feeCheck with CAVCheck with CAV

You pay at the time of applying, and fees are GST exempt. Consumer Affairs Victoria quotes the combined fee as $2,965.20, which matches the company and partnership rate, so confirm the sole trader total in myCAV when you apply.

Processing time

The Business Licensing Authority’s target is to decide 85% of motor car trader applications within 56 days. The average for 1 April to 30 June 2026 was 35 days. The most common delays are missing information or documents, and slow criminal checks.

Premises and business requirements

  • You may only trade from the premises endorsed on your licence, and only where local planning rules allow car trading.
  • Apply through myCAV, using a myCAV account set up with your own personal email address to verify your identity.

Salespeople and staff

Victoria doesn’t license salespeople separately. Instead, anyone you employ in a customer service role (buying, selling or exchanging cars for you, including test drives and negotiating) must give you a signed employee declaration (Form 3) and a police check dated within 6 weeks. You keep these on file, and you must not employ someone you know is disqualified.

Ongoing obligations

  • Annual statement: lodge it and pay the annual fee through myCAV in the 6 weeks before your licence anniversary. If it is still outstanding 21 days after the reminder, the licence is cancelled automatically.
  • Dealings book: record every car you buy, sell, exchange or hold for sale, on paper or electronically, and keep it at your premises for at least 6 years after the last entry. Entries are made at the time of the transaction. Failing to keep it carries up to 50 penalty units, and a false entry up to 100 penalty units ($209.10 per unit in 2026-27).
  • Statutory warranty: used cars under 10 years old with under 160,000 km carry a warranty of 3 months or 5,000 km.
  • Motor Car Traders Guarantee Fund: buyers can claim against the fund for losses such as a trader failing to honour the statutory warranty. The Motor Car Traders Claims Committee decides claims, up to $40,000.

Penalties for unlicensed trading

Consumer Affairs Victoria says unlicensed traders face maximum penalties of up to $19,000, or 15% of the sale price, for each car they buy, sell or exchange. That figure was published in 2025 and the Victorian Government announced further reforms in July 2026, so check the current penalty with Consumer Affairs Victoria.

How to apply

Create a personal myCAV account, complete the sole trader, company or partnership application, upload your documents and pay the application fee and first annual fee.

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 Victorian dealings book and contract pack is coming next. Queensland is live now.

For the detail, read our guides to the VIC dealer stock register and VIC statutory warranty.

How to apply for a motor car trader licence in Victoria

  1. Check you need oneTrading 4 or more cars in 12 months means you are deemed to need a licence, and running a car trading business needs one regardless of the count.
  2. Check eligibilityConfirm you are 18 or over, fit and proper and not disqualified. If a disqualifying circumstance applies, apply for permission first.
  3. Learn the rulesMake sure you know the Motor Car Traders Act 1986 and Regulations 2018 well enough to run the business.
  4. Secure your premisesHave premises where local planning rules allow car trading. The licence is endorsed for those premises.
  5. Apply through myCAVCreate a myCAV account with your own email, choose sole trader, company or partnership, and upload your documents.
  6. Pay the feesPay the $1,184.70 application fee plus the first annual fee ($1,733.10 sole trader or $1,780.50 company or partnership) for 2026-27.
  7. Wait for the decisionThe target is 85% of applications decided within 56 days. Don’t trade until you are licensed.

Questions dealers ask

How much does a motor car trader licence cost in Victoria?

For 2026-27 you pay a $1,184.70 application fee plus a first annual fee of $1,733.10 (sole trader) or $1,780.50 (company or partnership). After that you pay the annual fee each year with your annual statement.

How many cars can I sell in Victoria without a licence?

Trading 4 or more cars in any 12 months means you are deemed to need a licence. You may need one with fewer if you are carrying on a car trading business.

How long does a motor car trader licence take?

The target is 85% of applications within 56 days. The average between April and June 2026 was 35 days.

Do car salespeople need a licence in Victoria?

No separate licence, but each customer service employee must give you a signed employee declaration (Form 3) and a recent police check, which you keep on file.

What is the Motor Car Traders Guarantee Fund?

A fund buyers can claim against for losses such as a trader not honouring the statutory warranty. The Motor Car Traders Claims Committee decides claims, up to $40,000.

Sources

Rules and fees change. Check the official source before you rely on anything here; this guide is general information, not legal advice.

  1. Consumer Affairs Victoria: Apply for a motor car trader’s licence
  2. Consumer Affairs Victoria: Fees and forms, motor car traders
  3. Consumer Affairs Victoria: Annual statement and fees
  4. Consumer Affairs Victoria: Licensing and registration processing times
  5. Consumer Affairs Victoria: Disqualifications and permissions
  6. Consumer Affairs Victoria: Customer service employees
  7. Consumer Affairs Victoria: Penalties, motor car traders
  8. Consumer Affairs Victoria: Compensation claims (Motor Car Traders Guarantee Fund)
  9. Consumer Affairs Victoria: Clayton man faces unlicensed car trading charges

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