If you’re planning to sell cars regularly, the short answer is: probably, yes. In Victoria, anyone who buys, sells, or exchanges four or more motor vehicles in a 12-month period is required to hold a Licensed Motor Car Trader (LMCT) licence, issued by Consumer Affairs Victoria. This applies whether you’re running a full dealership, flipping cars as a side business, or trading regularly through an online marketplace. Selling without the right licence isn’t just a compliance box to tick — it can lead to real fines and legal consequences. Below, we break down who actually needs a dealer licence, who’s exempt, and how to get licensed without unnecessary delays.
What Counts as “Selling Cars” in the Eyes of the Law?
Consumer Affairs Victoria doesn’t just count how many cars change hands — it looks at whether you’re carrying on a business of trading motor vehicles. That means the four-or-more-vehicles-a-year threshold is a guide, not a hard line. Even if you sell fewer than four cars, you could still be classed as a trader if you’re buying vehicles specifically to resell them for profit, advertising cars for sale on an ongoing basis, or running anything that resembles a commercial operation, whether that’s a yard, a website, or a steady stream of repeat customers. The burden of proof sits with you: if Consumer Affairs Victoria decides you’re operating as a trader, you’ll need to show otherwise.
Who Actually Needs a Dealer Licence?
You’ll generally need an LMCT licence if you fall into any of the following categories:
- You buy, sell, or exchange four or more vehicles in a 12-month period
- You purchase vehicles specifically with the intention of reselling them
- You advertise cars for sale on a recurring or ongoing basis
- You operate from premises, a yard, or an online platform that functions like a dealership
If you’re unsure whether your situation fits, it’s worth reading through who qualifies for an LMCT licence before assuming you’re in the clear.
Who Is Exempt From Holding a Dealer Licence?
Not everyone who sells a car needs a licence. You’re generally exempt if you’re:
- Selling your own personal vehicle occasionally, rather than trading as a business
- A finance company disposing of repossessed vehicles under specific conditions
- Selling vehicles as the executor of a deceased estate
- A charity or government entity operating under separate arrangements
If your situation sits in a grey area — say, you sell two or three vehicles a year but do so like clockwork — it’s worth getting professional advice rather than assuming you’re exempt.
What Happens If You Sell Cars Without a Licence?
Trading motor vehicles commercially without an LMCT licence is a criminal offence in Victoria. Penalties can include significant fines, and repeat or serious breaches can lead to further legal action. Beyond the legal risk, operating unlicensed also strips your customers of the consumer protections that come with buying from a registered trader, including statutory warranties, cooling-off rights, and access to the Motor Car Traders Guarantee Fund. That loss of protection can damage your reputation just as much as any penalty.
How to Apply for a Car Dealer Licence
The application process follows a set path, regardless of where in Victoria you’re based:
- Register for a myCAV account with Consumer Affairs Victoria
- Prepare your supporting documents — identity, financial, and premises evidence
- Submit your application and pay the relevant fee
- Attend an interview with a licensing officer
- Wait for approval, which typically takes several weeks to a few months
Getting your paperwork right the first time makes a real difference. Our documents checklist for Victorian LMCT applicants walks through everything you’ll need to gather before you start, and if you’re based regionally, our car dealer licence guide for Shepparton covers what local applicants should know about zoning and premises requirements.
Selling Trucks vs Cars: Does the Licence Differ?
The same LMCT licence covers both cars and trucks in Victoria, but the practical requirements can differ, particularly around premises size and zoning for heavier vehicles.
If you’re planning to deal in trucks specifically, it’s worth checking if you need a licence to sell trucks in Australia before assuming the car dealer rules apply in exactly the same way. Regional applicants can also see how this plays out locally in our truck dealer licence overview for Shepparton.
How Long Does It Take to Get Licensed?
Processing times vary depending on how complete your application is and how quickly your premises can be confirmed as correctly zoned. It’s worth understanding how long an LMCT licence actually takes before you set an opening date, since incomplete applications or premises issues can stretch the timeline well beyond the usual eight to fourteen weeks.
Common Reasons Applications Get Rejected
Even well-prepared applicants can run into delays or rejections. Missing financial documentation, unconfirmed premises zoning, and incomplete background checks are among the most frequent issues. Understanding why LMCT applications get rejected before you apply can help you avoid the same pitfalls.
Can You Sell Cars From Home?
Many first-time applicants ask whether they can start smaller, trading from a home garage rather than a commercial yard. In most cases, residential zoning won’t meet Consumer Affairs Victoria’s requirements. It’s worth reading up on running a dealership from home in Victoria before you commit to a particular property.
We’re also planning deeper guides on interstate dealer licence recognition and used car warranty obligations for Victorian dealers, so keep an eye on our blog if either of those topics is relevant to your plans.
Selling Cars Across Victoria
Whether you’re setting up in Melbourne or running a smaller regional operation in Ballarat, Geelong, Bendigo, Warrnambool, or Wodonga, the LMCT licensing rules stay the same right across Victoria. What tends to change is local: which council handles your planning permit, how your premises are zoned, and how far you may need to travel for an interview or inspection. Wherever you’re based, getting the fundamentals right from the start puts you in the best position for a smooth approval.
Understanding whether you need a dealer licence is the first step — getting the application right the first time is what actually saves you weeks of back-and-forth. If you’d like experienced guidance through the process, our team can help you prepare a complete, compliant LMCT application from start to finish.
Frequently Asked Questions
No. Selling your own personal vehicle occasionally is not considered trading and doesn’t require a licence. A licence is only required once you’re regularly buying, selling, or exchanging vehicles as a business.
Generally, up to three vehicles a year without triggering the licensing requirement, though Consumer Affairs Victoria can still classify you as a trader if your activity resembles a business, regardless of the exact number.
LMCT stands for Licensed Motor Car Trader. It’s the official licence issued by Consumer Affairs Victoria that allows a person or business to legally buy, sell, or exchange motor vehicles commercially.
Application and licensing fees are set by Consumer Affairs Victoria and can change over time, so it’s best to confirm the current fee directly with CAV or a licensing consultant before you apply.
Not if you’re doing so on a regular or commercial basis. Trading through an online marketplace doesn’t exempt you from licensing requirements — the same rules apply as they would to a physical dealership.
No. Each state and territory has its own regulator and licensing scheme. In Victoria it’s the LMCT licence through Consumer Affairs Victoria; other states use different names and application processes.
It’s possible, but Consumer Affairs Victoria will scrutinise your financial position more closely. You’ll need to demonstrate that you can run the business responsibly despite your credit history.
Yes. The same LMCT licence framework applies to trucks, though premises and zoning requirements can differ due to the size of heavy commercial vehicles.
Typically, proof of identity, a National Police Certificate, recent bank statements, a cash flow projection, and evidence that your business premises meet zoning requirements.
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