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 Max Number Of Cars You Can Own In A Year - Without a dealer license?  

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VersionR
  • VersionR
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  • From: Sydney
Post #1 post 2nd January 2011 - 06:13 PM
So yeah, how many cars can you have in a year without needing a dealer license?

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QUOTE (julio_vasquez @ Aug 16 2012, 11:30 AM) *
Dont buy a motard man, They are fun for quick commutes but a long ride they are shocking. Plus you willl just end up doing wheelies everywhere.
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scr33ch08
Post #2

QUOTE (VersionR @ Jan 3 2011, 01:13 PM) *
So yeah, how many cars can you have in a year without needing a dealer license?



i got told it was a max of 5 in yourown name just a estamate now 100% sure

xxxxgold
Post #3

I assume you are looking for the NSW regulations? If so, I can't help you there but in QLD there is no legislated limit. You require a motor dealers licence if you are considered to be 'in the business' of buying/selling/trading vehicles for profit. To the letter of the law you may be guilty of an offence if you purchase just one car with the sole intent to resell for a profit although admittedly it would be mighty difficult to prove without admissions.

I can't imagine there would be a limit to the number of vehicles you may own at any one time in Australia, but I assume you were referring to owning cars for the purposes of resale.

custom_gti
Post #4

i dont think there is a limit but i know that if u own 10cars and u are trying to sell them privately u can and will get done a fella i know he was doing that he had 11 all up 8 in his yard and the rest at his mothers house and he got raided by fair trading and got a HUGH fine

xxxxgold
Post #5

QUOTE (custom_gti @ Jan 3 2011, 01:27 PM) *
i dont think there is a limit but i know that if u own 10cars and u are trying to sell them privately u can and will get done a fella i know he was doing that he had 11 all up 8 in his yard and the rest at his mothers house and he got raided by fair trading and got a HUGH fine


Imprisonment is also a distinct possibility for large scale or repeat offenders.

If you want to sell vehicles, get a dealers licence. It's much better than looking over your shoulder 24 hours a day.

TwinCam16
Post #6

Ask that faggot AHjosh.

YrocLeumas
Post #7

QUOTE (xxxxgold @ Jan 3 2011, 12:22 PM) *
I assume you are looking for the NSW regulations? If so, I can't help you there but in QLD there is no legislated limit. You require a motor dealers licence if you are considered to be 'in the business' of buying/selling/trading vehicles for profit. To the letter of the law you may be guilty of an offence if you purchase just one car with the sole intent to resell for a profit although admittedly it would be mighty difficult to prove without admissions.

I can't imagine there would be a limit to the number of vehicles you may own at any one time in Australia, but I assume you were referring to owning cars for the purposes of resale.


Hey xxxgold, not really a legal question but do you think it is silly that that would apply to anyone if they just wanted to buy and restore a car for a hobby and then sell it?

I'd like to do that but not if I would have to bother stuffing through legal junk just to be able to.

xxxxgold
Post #8

QUOTE (YrocLeumas @ Jan 3 2011, 02:01 PM) *
Hey xxxgold, not really a legal question but do you think it is silly that that would apply to anyone if they just wanted to buy and restore a car for a hobby and then sell it?

I'd like to do that but not if I would have to bother stuffing through legal junk just to be able to.


Although it's theoretically possible that you could find yourself in front of Magistrate for selling a single vehicle the chances are so small as to be almost non existent. Fair Trading are far more interested in those who are shifting significant numbers of vehicles than someone who might make a profit of $500 once a year.

iamhappy46
Post #9

QUOTE (VersionR @ Jan 3 2011, 01:13 PM) *
So yeah, how many cars can you have in a year without needing a dealer license?


6 is the maximum during any 12 month time period, after the 6th, you need a DL :bowrofl:

This only applies to vehicles 'registered' in your name, unregistered vehicle transactions do not apply.

trev084
Post #10

QUOTE (iamhappy46 @ Jan 3 2011, 05:52 PM) *
6 is the maximum during any 12 month time period, after the 6th, you need a DL :thumbsup:

This only applies to vehicles 'registered' in your name, unregistered vehicle transactions do not apply.


Glad you said registered, had 12 at one time :bowrofl:

iamhappy46
Post #11

QUOTE (trev084 @ Jan 3 2011, 07:03 PM) *
Glad you said registered, had 12 at one time ;)


you can 'own' 12 registered cars(or 120 if you had the space) at one time BUT your only allowed to sell 6 in a 12 month period.

trev084
Post #12

Ah, I thought you meant cars owned in your name, not selling.

VersionR
Post #13

Cheers thanks guys

xxxxgold
Post #14

I've done a little research for you and NSW is the same as QLD in that there is no legislated limit to the number of vehicles an individual may sell before requiring a motor dealers licence.

A person (other than an exempted person may not.....carry on, or advertise that the person carries on or is willing to carry on, the business of a dealer unless the person is the holder of a dealer’s licence.

Again, you could be prosecuted for selling a single vehicle but it would be extraordinarily unlikely. In some cases, the authority responsible for enforcement of the relevant Act (Fair Trading in both NSW and QLD) imposes an 'unofficial' limit which when exceeded, they take action. Judging by the following press release this figure is 4 in NSW. There is also an unofficial limit in QLD but depending on individual circumstances this limit is disregarded on occasions.

Fair Trading Press Release

It's also important to note that in both NSW and QLD that no distinction is made between registered and unregistered vehicles in terms of the requirement to hold a dealers licence. If you think selling unregistered vehicles relieves you of your obligation to hold a current licence, think again.

So really there is no 'safe' number, if you are considered to be carrying on the business of motor dealing you could potentially be prosecuted regardless of whether you sell 1 or 100 vehicles. There are also taxation implications to consider, while Fair Trading may turn a blind eye to 2 or 3 vehicles in most cases, if the ATO catches wind of your activities I can guarantee they won't be so forgiving. Also keep in mind that along with possible fines and prison sentences that the proceeds of the illegal activity may also be forfeited.

YrocLeumas
Post #15

xxxx gold to the rescue!
Enemy of misinformation
Hero of boost

hazzar!

VersionR
Post #16

How are they meant to know if the vehicles are sold at profit, if the prices of the vehicles on record are minimal (for stamp duty purposes)? I've never bought a car that we both didn't agree on sugarcaoting the sold price, to keep the money in our pockets and out of the RTA/VicRoads/QT. The only people who would ever know are the seller and me?

xxxxgold
Post #17

If we wanted to be pedantic you can theoretically still be charged with unlicensed motor dealing when selling at a loss because you are still 'in the business' of motor dealing, albeit an unprofitable one!

Having said that, someone who is turning over vehicles at regular intervals is either making a profit or stupid beyond belief, so suspicion is going to be raised despite the protests of the seller who claims they are being sold at a loss. Remember that if you are charged with unlicensed dealing and lie to the court about the purchase or sale price you are going to find yourself charged with perjury.

VersionR
Post #18

Ok then ;) Thanks

mazrx3
Post #19



Hello All,

This is an extract out of the Motor Dealers Act 1974

It allows for 4 vehicles for sale, or offers or
displays for sale, in a 12 month period.

56D Evidence of carrying on business as dealer

(1) If in any proceedings for an offence under this Act or the regulations it
is proved that a person sold, or offered or displayed for sale, more than
4 motor vehicles within a 12 month period to any other person or
persons (other than a dealer), it is presumed in the absence of proof to
the contrary that the person was carrying on business as a dealer during
that period.

(2) Nothing in subsection (1) precludes a person who sells, or offers or
displays for sale, 4 or less motor vehicles within a 12 month period to
any other person or persons from being found to be a dealer.
Rock Lobster
Post #20

QUOTE (mazrx3 @ Apr 19 2011, 11:39 PM) *
It allows for 4 vehicles for sale, or offers or
displays for sale, in a 12 month period.


Read a little closer, xxxxgold has already put this one to bed.

QUOTE
(2) Nothing in subsection (1) precludes a person who sells, or offers or displays for sale, 4 or less motor vehicles within a 12 month period to any other person or persons from being found to be a dealer.


1 vehicle is enough to be a dealer in a legislative sense, both in New South Wales and Queensland. The 4 vehicle limit mentioned in the Act is similar to the high alcohol limit in Queensland in that you can still obviously be charged with an offence if you are under that limit but if the limit is exceeded, you are presumed to have committed the offence.

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