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Your Obligations

Licensed motor car traders should be familiar with all their obligations as a licensee, which can be found in the Motor Car Traders Act 1986 and the Motor Car Traders Regulations 2008.

Heavy penalties can apply for failure to adhere to legal requirements.

The Act and its regulations help to protect members of the public by outlining how motor car traders must conduct business. Consumer Affairs Victoria has more information about this on their website.

Consumer Affairs Victoria deals with complaints about motor car traders and can:

  • Prosecute them; and,
  • Bring them before the Occupational and Business Regulation List of the Victorian Civil and Administrative Tribunal, which, among other things, can suspend or cancel a motor car trader's licence, and/or impose a fine.

Motor Car Traders Guarantee Fund

Motor Car Trader Licence fees are deposited into the Motor Car Trader's Guarantee Fund. This Fund meets:

  • Costs of regulating motor car trading (to protect the Victorian public); and,
  • Successful claims made by customers of licensed motor car traders who have suffered a loss as a result of a trader's failure to comply with certain provisions of the Act. 

Motor Car Traders Regulations 2008

Changes include:

  • Give buyers the new Form 4 (Cooling-off Rights and Waiving Your Cooling-off Rights) before the buyer signs a sale agreement for a new or used vehicle (for more information, please refer to the Consumer Affairs Victoria website)
  • Get the Form 3 (Notice To Motor Car Trader By Prospective Person Employed In A Customer Service Capacity) from prospective personnel before they start in a customer service capacity
  • Get a police check from new customer service employees before they start work or within six weeks of their start date
  • Include name and address is available upon request' on a used car's window display notice, in the section detailing the last owner of a used vehicle. If the last owner was a trader or special trader, display their name and business address in this section.