Motor Dealer Licence NSW: Cost, Steps and Rules

• Yes: As at 4 November 2026, NSW Fair Trading requires a licence if your business involves buying, selling or exchanging vehicles.
• Cost: As at 4 November 2026, NSW Fair Trading lists $1,893 for a new 1-year retail licence for one premises on paper, or $1,865 online. Fees checked 4 November 2026.
• First step: get council approval for your site, then apply online through Service NSW.^[2]

Selling a few cars, or asking for a family member? As at 4 November 2026, NSW Fair Trading says you need the licence if your business involves buying, selling or exchanging motor vehicles. The NSW pages we read do not say how many cars make it a business, so we did not confirm a minimum. Next step: ask NSW Fair Trading before you list the first car. The sections below cover the case in full.^[2]

Do you need a motor dealer licence in NSW?

As at 4 November 2026, NSW Fair Trading requires a motor dealer licence if your business involves buying, selling or exchanging motor vehicles as a retailer or a wholesaler. It also covers dealing in written-off light vehicles registered in NSW or interstate.^[2]

As at 4 November 2026, NSW Fair Trading defines "motor vehicles" as cars, motorcycles, caravans and some trailers. A trailer that weighs 250 kg or less when empty does not count. A towable recreation vehicle with living space or sleeping facilities also counts as a trailer.^[2]

As at 4 November 2026, NSW Fair Trading lists three groups that do not need a motor dealer licence:^[4]

• Vehicles not used to carry goods or people on public roads, such as farm equipment.
• Vehicles that cannot be registered in NSW, such as quad bikes, Segways and motorised wheelchairs.
• Vehicles with a mass over 4.5 tonnes. Heavy Vehicle National Law covers these instead.^[4]

As at 4 November 2026, NSW Fair Trading says a trailer sold with a boat to carry it is also outside the rule. A second-hand boat needs a second-hand dealer licence instead.^[2]

Retail or wholesale motor dealer licence?

As at 4 November 2026, NSW Fair Trading says a retail licence lets you sell to the public and a wholesale licence does not. A wholesaler cannot sell vehicles to the public.^[3]

As at 4 November 2026, the NSW Government fees page lists a 1-year wholesale licence for one premises at $693 on paper, against $1,893 for retail. Wholesale is cheaper because it has no compensation fund contribution.^[1]

As at 4 November 2026, the NSW Government fees page says a wholesaler who later wants to sell to the public pays the compensation fund contribution to remove the wholesale-only condition. It is pro-rated: on a 5-year licence it is $2,582 in the first year and $516 in the fifth.^[1]

• Fit and proper person: NSW Fair Trading's judgement, after police and money checks, that you can be trusted with a licence.
• Notified premises: each place, other than a trade show, where you tell NSW Fair Trading you will do business.
• Compensation fund contribution: part of the retail fee, paid for each place of business into the fund set up under the Motor Dealers and Repairers Act 2013.
• Consignment: selling a car for its owner.
• Controlled member of a declared organisation: a person linked to a group declared under NSW criminal organisation laws. Such a person cannot hold a licence.
• PPSR: the Personal Property Securities Register, which shows money owing on a vehicle.^[2]

Who can get a NSW motor dealer licence?

As at 4 November 2026, NSW Fair Trading lists six tests for a motor dealer licence: age, character, finances, criminal links, funds and council approval.^[2]

• You are 18 or older and a fit and proper person.
• You are not an undischarged bankrupt and are not disqualified from holding a licence.
• As an adult, you have not been found guilty of motor vehicle theft or a dishonesty offence in the past 10 years.
• You are not a controlled member of a declared organisation, and do not regularly associate with members of a declared criminal organisation.
• You have the funds to keep the business going.
• Your council has approved car dealing at the address you nominate.^[2]

As at 4 November 2026, NSW Fair Trading also checks whether you owe any compulsory contribution or other payment to the Compensation Fund, and the Commissioner for Fair Trading may run further checks. The NSW pages we read list no course or qualification for a dealer licence.^[2]

How to apply for a motor dealer licence through Service NSW

As at 4 November 2026, NSW Fair Trading says the online application takes about 20 minutes.^[2]

As at 4 November 2026, Service NSW takes applications for a motor dealer licence online, or on paper at a Service NSW Centre. The steps below follow the NSW pages in order.^[4]

1. 1Choose retail or wholesale, and a 1, 3 or 5 year term. Check the fee in the table below.
2. 2Ask your council to approve car dealing at the site. Get that before you sign a long lease.
3. 3Get an ABN, or an ACN if you trade as a company. Register a business name if you use one.
4. 4Gather proof of identity, and the name, address and date of birth of each person who owns the business. Add the business name, address and incorporation date.
5. 5If someone else will manage the business day to day, have each manager sign a Manager's consent form. A company must name one.
6. 6Apply online through Service NSW. It takes about 20 minutes. Or lodge the paper Individual or Corporation application form at a Service NSW Centre.
7. 7Pay the fee. Lodging online takes $28 off a new licence.
8. 8Wait for the email. If you are approved, it includes your licence, and your details go on the public register.^[2]

As at 4 November 2026, Service NSW says to use the Individual application if you are self-employed, and the Corporation application if you are an ASIC-registered company, even with a sole director. Trusts and partnerships cannot use the Corporation form. Some Service NSW Centres do not take cash.^[4]

As at 4 November 2026, NSW Fair Trading says that if you are refused, it gives the reasons in writing and you can ask for a review by another officer who was not part of the first decision.^[2]

How much does a motor dealer licence cost in NSW?

As at 4 November 2026, the NSW Government fees page lists a new retail motor dealer licence for one premises at $1,893 for 1 year, $3,077 for 3 years and $4,941 for 5 years on paper. Each fee has a processing fee, a fixed amount per place of business and, for retail, a compensation fund contribution per place.^[1]

As at 4 November 2026, the NSW Government fees page lists the processing fee for a new licence at $277 on paper or $249 online. It is not refunded if your application is refused or withdrawn.^[1]

As at 4 November 2026, the NSW Government fees page says you pay the processing fee once but the fixed amount and contribution for every place of business. For a 1-year retail licence that is $416 plus $1,200, so $1,616, for each extra site. A mobile workshop counts as a place of business.^[1]

As at 4 November 2026, the NSW Government fees page says adding a site to an existing licence costs nothing until your next renewal.^[1]

As at 4 November 2026, the NSW Government fees page says fees are valid for 2026-27 and may rise with CPI each 1 July. The new amount applies when you next renew.^[1]

As at 4 November 2026, the NSW Government fees page gives the cheapest new licence as wholesale for 1 year ($693 on paper, $665 online) and the dearest as retail for 5 years ($4,941 on paper, $4,913 online).^[1]

Yard rent, stock, signs, PPSR search fees and insurance: we did not confirm a figure for these as at 4 November 2026, because no NSW page we opened gives one. Next step: get written quotes before you commit, and see the PPSR page linked under Official links.

NSW motor dealer licence fees

As at 4 November 2026, the NSW Government fees page does not say whether GST is included in motor dealer licence fees, so we did not confirm it. Next step: ask Service NSW before you pay. The table shows the paper price, with the online price in the label.^[1]

How long does it take to get a dealer licence in NSW?

As at 4 November 2026, NSW Fair Trading aims to assess a motor dealer licence application within 30 business days, about six weeks. It may email you for more information, which can add time.^[2]

What takes longest: the council approval for your site, which comes before you can apply. As at 4 November 2026, we did not confirm how long councils take. Next step: ask your council early.

Council approval and notified premises

As at 4 November 2026, NSW Fair Trading requires council approval for a physical site before a motor dealer business can run there.^[3]

As at 4 November 2026, NSW Fair Trading says you may only offer or display vehicles at your notified premises, at a trade show, or on a website you use as a licensed online dealer.^[3]

• As at 4 November 2026, NSW Fair Trading requires notice at least 20 business days before you start at a new premises.
• As at 4 November 2026, NSW Fair Trading requires notice within 20 business days of moving the business or closing a premises.
• Use the Change to Notified Premises form. Lodge it at a Service NSW Centre or by email.^[2]

As at 4 November 2026, NSW Fair Trading requires a sign at each place of business that people can see as they approach. It must show your name as it appears on the licence, and "licence number" (or "Lic. No.") followed by the number. A business name can be added, but not in place of the licensee's name.^[3]

Selling cars online in NSW

As at 4 November 2026, NSW Fair Trading counts you as an online dealer if a buyer can finish the whole purchase on your website without visiting you. A website that only advertises cars for your yard does not count.^[3]

• As at 4 November 2026, NSW Fair Trading requires notice at least 20 business days before you start selling online, with your website address plus an office and a storage address, both in NSW.
• As at 4 November 2026, NSW Fair Trading requires a website address ending in .au, and your licence number on the site and in ads.
• As at 4 November 2026, NSW Fair Trading requires that buyers can inspect the car before they buy and again at delivery, and limits a deposit to 10% of the price.^[3]

As at 4 November 2026, NSW Fair Trading says that for an online sale, the cooling-off period on a loan you arrange runs from the contract until 5pm the next day.^[3]

Rules once you are licensed: the dealers register, notices and PPSR

As at 4 November 2026, NSW Fair Trading requires a dealers register: a record of every vehicle you buy and sell, each with its own entry number, added within one business day. Keep the register for 6 years after the last entry, on paper or digitally (Form 1 is a template), with one at each licensed premises.^[3]

• Each entry: dates received and sold, the supplier and buyer (with their dealer or driver licence number), make, model, build date, rego, engine number and VIN.
• Also record the odometer reading when bought and when sold, and the type and serial number of the sales notice.
• Sales notice: As at 4 November 2026, NSW Fair Trading says you cannot sell a vehicle without one. You and the buyer sign it, and the buyer gets a copy. Keep notices for 6 years.^[3]

As at 4 November 2026, NSW Fair Trading says a vehicle sold with number plates also needs a roadworthy inspection report, except at auction. Damaged vehicles need a damage notice on display. Use the right Fair Trading form for cars, motorcycles or trailers.^[3]

As at 4 November 2026, NSW Fair Trading says that for every used vehicle you must search the Personal Property Securities Register (PPSR) by its VIN, or its chassis number if it has no VIN. A wrong number gives you no protection. The search shows money owing and, where held, stolen and written-off status. Each search has a fee, and the search number goes on the sales notice.^[6]

As at 4 November 2026, NSW Fair Trading says that if a buyer uses finance you arranged, they get a cooling-off period of one business day, and you give them the cooling-off period notice (Form 12) to sign.^[3]

As at 4 November 2026, NSW Fair Trading says never use "on-road costs" to describe government charges. For a second-hand car with a price, show its rego, or its stock number if unregistered. For new cars, show dealer charges in dollars and say if government charges are extra.^[5]

Consignment sales and the trust account

As at 4 November 2026, NSW Fair Trading requires a written consignment agreement listing: both parties' names, addresses and licence numbers; the vehicle's rego or VIN; any loan on it, or a statement that there is none; the agreed price for the owner and how it is paid; and the start and end dates.^[3]

• As at 4 November 2026, NSW Fair Trading requires you to maintain a trust account at an authorised financial institution in NSW for any money received from consignment.
• As at 4 November 2026, NSW Fair Trading requires every dollar of the sale price in the trust account no later than the next business day, and payment out within 14 days, only to the owner, their credit provider, or yourself for commission owed.
• As at 4 November 2026, NSW Fair Trading requires the account to be audited every 12 months, with a trust receipt book, deposit book and cash book (or digital versions) kept for 6 years.^[3]

As at 4 November 2026, NSW Fair Trading says that at auction, a consigned car has no dealer or consumer guarantees, but still needs a guarantee of clear title.^[3]

Renewing, restoring and changing your licence

As at 4 November 2026, NSW Fair Trading sends a renewal form about 4 weeks before your licence expires. If you do not renew by the due date, the licence expires and you must stop trading.^[2]

As at 4 November 2026, NSW Fair Trading says that if a licence expired less than 3 months (92 days) ago, you may restore it at a Service NSW Centre and keep your number. After 3 months you may need to apply for a new licence. You must tell Fair Trading within 14 days if your name, address or contact details change.^[2]

As at 4 November 2026, the NSW Government fees page lists renewal of a retail licence for one premises at $682 for 1 year, $1,868 for 3 years and $3,052 for 5 years on paper.^[1]

Penalties for unlicensed motor dealing in NSW

As at 4 November 2026, NSW Fair Trading says dealing without a licence can bring an on-the-spot fine or prosecution, with a maximum penalty of $110,000. A second offence can bring $110,000, 12 months in prison, or both, and a court can order you to give up the proceeds from cars you sold. The NSW pages we read give no penalty units and do not say whether the $110,000 applies to individuals, corporations or both, so we did not confirm that. Next step: check the Motor Dealers and Repairers Act 2013 on legislation.nsw.gov.au.^[2]

As at 4 November 2026, two NSW Government pages we read give different on-the-spot fines for unlicensed dealing: $5,500 on the motor dealer licence page and $6,600 on the working as a motor dealer page. We did not confirm which is current. Next step: check the penalty notice schedule on legislation.nsw.gov.au, or ask NSW Fair Trading.^[2]

• As at 4 November 2026, NSW Fair Trading lists a $550 fine for a wrong or missing sign, or up to $2,200 in court.
• As at 4 November 2026, NSW Fair Trading lists a $1,100 fine, or up to $11,000, for an online deposit over 10%, and $550, or up to $2,200, for not offering an inspection.
• As at 4 November 2026, NSW Fair Trading lists up to $55,000 in court for odometer tampering. The on-the-spot amount differs between two NSW Government pages ($5,500 on the working as a motor dealer page, $1,100 on the advertising obligations page), and we did not confirm which is current. Next step: check the penalty notice schedule on legislation.nsw.gov.au, or ask NSW Fair Trading.^[3]

Trader's plates, GST and insurance

As at 4 November 2026, Service NSW says trader's plates are for driving an unregistered car for business reasons, such as a test drive or a move between yards. Lodge in person at Service NSW with the Trader's Plate Application form, your motor industry licence, ABN certificate, and a letter on letterhead saying why you need them. Service NSW did not list the fee, so we did not confirm it. Next step: ask at a Service NSW Centre.^[7]

As at 4 November 2026, business.gov.au says you must register for GST once your GST turnover reaches $75,000 or more.^[8]

As at 4 November 2026, business.gov.au lists workers compensation if you have employees, and cover for injuries to third parties when your business uses vehicles, among the insurance a business may need. The NSW dealer pages we read set no extra insurance rule for dealers.^[9]

What changed: 7 November 2026: first published. Fees checked against the NSW Government fees page, updated 1 July 2026.