What is an LMCT?
Licensed Motor Car Traders (LMCTs) are obliged by law to guarantee clear title on every car they sell. That means, if the car is found to have been stolen, or rebirthed, or has a security registered against it by a finance company, the LMCT must 'make good' the title or, if this cannot be done, provide a full refund. They must also provide a three day cooling off period (in case you change your mind), and a three month or 5000kms statutory warranty for cars built less than 10 years ago which have also travelled less than 160,000kms.
How do you know if a trader is an LMCT?
Firstly, check for an LMCT number; it should be prominently displayed on the premises. If you are still unsure of the trader's legitimacy you can search on the ACCC website or search for a VACC LMCT.
For more information on unlicensed traders or 'backyarders', visit the VACC Unlicensed Traders Campaign page.
Download a copy of Better car deals - a car buyer's guide or visit VACC's Consumer Information section for advice on purchasing new and used vehicles.