What Happens After Your LMCT Licence Gets Approved?

Getting your LMCT (Licensed Motor Car Trader) licence approved is a big milestone — and rightfully so. The process is detailed, paperwork-heavy, and requires real commitment. But once that approval comes through, many new dealers find themselves asking: what do I actually do now?

Whether you’re setting up a car dealership in Victoria or expanding an existing operation, knowing your next steps matters. This guide walks you through exactly what happens after approval, what obligations you take on, and how to set yourself up for long-term success.

1. You’ll Receive Your Official LMCT Licence Certificate

Once the Business Licensing Authority (BLA) approves your application, you’ll receive your official LMCT licence certificate. This document is more than just a formality — it’s your legal authorisation to trade in motor vehicles in Victoria.

Here’s what you should do as soon as it arrives:

• Display your licence prominently at your business premises — this is a legal requirement.
• Keep a copy in a secure place in case the original is ever lost or damaged.
• Check the details carefully — your name, business address, and licence number should all be accurate.

If there’s an error on your certificate, contact Consumer Affairs Victoria promptly to have it corrected before you begin trading.

2. Set Up Your Business Legally and Practically

Holding an LMCT licence means you’re now operating a licensed business. That comes with both legal and operational responsibilities that you’ll want to sort out early.

Business Structure and Registration

If you haven’t already, make sure your business structure is properly set up. Whether you’re trading as a sole trader, partnership, or company — your registration with the Australian Business Register (ABR) should reflect your current setup. Our team helps clients with exactly this during the LMCT licence application process, but if anything has changed post-approval, update it promptly.

Business Bank Account

Open or designate a dedicated business bank account for all vehicle trading transactions. Mixing personal and business finances is a common mistake that creates compliance headaches down the road.

Insurance and Premises

Make sure your dealership premises meet all requirements — adequate signage, a safe and accessible display area, and any conditions specified by your local council. You should also organise appropriate business insurance, including public liability cover.

For dealers still finalising their premises setup, it’s worth reading our dealership premises checklist for LMCT approval to ensure you remain compliant from day one.

3. Understand Your Ongoing Compliance Obligations

This is where many new licence holders get caught off guard. Approval doesn’t mean you can simply start selling cars without structure. There are strict ongoing compliance requirements under the Motor Car Traders Act 1986.

Record-Keeping Requirements

You must maintain accurate, up-to-date records of every vehicle you trade. This includes purchase and sale details, vehicle identification numbers (VINs), and any warranties provided. Inadequate records are one of the most frequent reasons dealers face compliance issues.

Learn exactly what’s required in our article on the 5 mandatory records every LMCT licence holder must maintain.

Cooling-Off Rights and Statutory Warranties

Buyers of used motor vehicles in Victoria have statutory rights — including cooling-off periods and warranty protections. As a licensed trader, you’re legally obligated to honour these rights and clearly communicate them to buyers.

Consumer Affairs Audits

Consumer Affairs Victoria conducts periodic compliance audits of licensed motor car traders. These checks can be unannounced, so it pays to always be audit-ready. Our guide on what happens during a Consumer Affairs compliance audit gives you an inside look at what inspectors look for.

4. Avoid the Most Common Post-Approval Mistakes

Gaining your licence is one thing — keeping it is another. Many traders run into trouble not during the application phase, but after approval, when they become complacent about compliance.

The most common mistakes include:

• Failing to display your licence at your trading premises
• Incomplete or missing vehicle records 
• Not providing statutory warranties to eligible buyers
• Trading from an unapproved premises or location
• Letting your licence lapse without renewing on time

For a deeper dive into what trips up even experienced dealers, read our breakdown of top LMCT licence compliance mistakes dealers should avoid.

5. Know When (and How) to Renew Your Licence

Your LMCT licence isn’t a one-and-done deal. It must be renewed annually, and the renewal process has its own requirements. Missing your renewal window means you could be trading without a valid licence — which carries serious penalties.

Our step-by-step guide on how to renew your LMCT licence covers everything from submission timelines to what documents you’ll need to resubmit. There’s also a compliance-focused companion piece specifically covering key LMCT renewal tips for 2026 that’s worth bookmarking.

6. Stay Informed About Industry Rules and Regulations

The motor vehicle trading industry doesn’t stand still. Regulations can change, and what was compliant last year may need updating this year. Staying on top of industry news, Consumer Affairs updates, and any amendments to the Motor Car Traders Act is part of being a responsible licensee.

If you’re also trading trucks or considering expanding into the truck market, you’ll want to understand how licensing differs. Check out our detailed overview of truck dealer licencing in Victoria for a clear picture of what’s involved.

For dealers operating — or planning to operate — across state lines, our article on motor dealer licence requirements across Australian states outlines the key legal differences you need to be aware of.

7. Build a Trustworthy Dealership from Day One

Buyers today are more informed than ever. They check online reviews, ask for documented histories, and know their statutory rights. Building a reputation for transparency and professionalism isn’t just good ethics — it’s good business.

Some practical ways to build trust early on:

• Always provide accurate vehicle history information
• Be upfront about conditions and any known issues
• Clearly explain warranty and cooling-off rights at the point of sale
• Keep your premises clean, safe, and welcoming
• Respond promptly to any customer complaints or concerns

Want to understand what your customers see when they check your credentials? Our article on what a car dealer licence means for buyers gives a valuable perspective from the consumer’s point of view.

Looking ahead: As your dealership grows, you may also want to explore topics like how to handle vehicle trade-ins as a licensed trader, digital advertising rules for LMCT licence holders, and how to expand from a sole trader to a company structure under your LMCT licence. These will be covered in future guides on this site.