​WHO IS CONSIDERED A MOTOR CAR TRADER​?

 

The Business Licensing Authority (BLA) is an independent regulator within the Victorian Government's Consumer Affairs portfolio.

 

The BLA is responsible for the monitoring and enforcement of the Victorian Motor Car Traders Act.​

“The Act” defines the obligations of those who conduct businesses trading in motor vehicles. ​

 

​Under section 7 of the Motor Car Traders Act.  ​

“A person must not carry on a business of trading in motor cars unless that person is the holder of a motorcar trader's licence”. ​

 

​Under Section - 7A of the Motor Car Traders Act ​

“A person who buys, sells or exchanges, or offers to buy, sell or exchange, 4 or more motor cars in any period of 12 months (whether as a principal or as an agent) is deemed to be a motor car trader carrying on a business of trading in motor vehicles”. ​​

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Even if you don’t sell more than 4 cars per year if you are deemed to be carrying on a business of trading in motor cars, which includes activities such as advertising vehicles for sale, operating a business premises, or presenting yourself as a motor car trader you may need to apply for your LMCT. ​

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Motor Car Auto Wreckers and Motor Car Recyclers also require an LMCT in Victoria if they buy, sell or exchange more than 4 cars to metal recyclers, whether the car is in working order or registered.​

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APPLYING FOR YOUR MOTOR CAR TRADERS LICENCE (LMCT) 

 

What’s Involved?

To get your LMCT, you’ll need to share a few key details, such as:​

• Consent for a criminal history check for all key people involved (like directors, partners, associates, and their spouses)

• ​Proof of a suitable business premises, including planning permits or council approval 

• Have sufficient funds to carry on the business

• A detailed business plan & mission statement

• Predicted cash flow statement

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The Business Licensing Authority is pretty strict, so you’ll also need to meet certain criteria to qualify and ensure you're a fit and proper person: 

• Be at least 18 years old

• Proof of all assets, liabilities, income, and expenses of the director to assess the financial suitability and stability of the applicant.  

• Be able to maintain effective control and manage the business honestly and fairly

• Know the rules and regulations around motor car trading (we’ll help with that part!) 

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 Click the icon below to find out more via the Consumer Affairs Victoria website. 

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NOTIFYING THE AUTHORITY OF BUSINESS CHANGES

Staying compliant is essential to avoid penalties or suspension of your licence.

Our team ensures your details are kept up to date with the BLA, so you can focus on running your business with confidence.

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Notifying the BLA of business changes, such as:

• Change of business or trading address (applying for a retail permit or written planning advice for the site if required) 

• Change of company structure or directors

• Adding or removing business partners

• Updating trading names or business details

 

Click the icon below to find out more via the Consumer Affairs Victoria website. 

 

 

 

 

APPLYING FOR PERMISSION TO HOLD AN LMCT

Certain circumstances may disqualify you from obtaining this licence, and you'll need to get permission from the Business Licencing Authority (BLA) first. 

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Common reasons you may need to apply for permission include:

• Criminal convictions relating to fraud, dishonesty, drugs, or violence.

• A claim against you admitted by the Motor Car Traders Guarantee Fund in the past 10 years.

• Previous disqualification from holding a licence in Victoria or elsewhere.

• Directorship or involvement in a company that has been disqualified.

• Being under a guardianship or administration order.

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If you skip this step, your licence application will almost certainly be knocked back.

 

That’s where we come in! We’ll check if you actually need permission, help gather the right documents, and put together a strong application for you. Our goal is to make the process as smooth as possible so you’ve got the best chance of getting your LMCT approved.

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Click the icon below to find out more via the Consumer Affairs Victoria website. 

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