Under the Motor Car Traders Act 1986, a person who carries on the business of trading in motor cars must have a licence.

The Motor Car Traders Act and Regulations applies to all motor vehicle traders including motorcycles and trucks, in Victoria, who buy, exchange or sell cars irrespective of whether a car is new, old, used, damaged, complete or incomplete.

In short, anyone who offers to buy, sell or exchange four or more cars in 12 months is deemed to be acting as a motor trader.

VACC has been active in promoting to Consumer Affairs Victoria (CAV), the issues surrounding unlicensed traders, on behalf of motorists and on behalf of small business owners.

"VACC supports the Honourable Michael O'Brien, MP, Minister for Consumer Affairs and his office for tackling the issue of unlicensed car and motorcycle traders. These people present an unacceptable risk to consumers and should be identified quickly and prohibited from trading before they cause damage," VACC Executive Director, David Purchase, said.

Car buyers should only buy from an Licenced Motor Car Trader (LMCT) and they should report anyone suspected of ilegally selling vehicles from the home, pub or any other unlicensed premises. if you see an unlicensed motor car trader, ring 1800 351 591

To download a copy of 'Better car deals - a car buyers guide', click here

VACC press release on unlicensed traders