APPLYING FOR YOUR MOTOR CAR TRADERS LICENCE
We've helped hundreds of motor traders obtain their licences and navigate the ongoing compliance requirements that come with operating an LMCT business. Whether you're applying for the first time, updating your licence details, or need assistance managing your LMCT obligations, our experienced team can guide you through the process and provide practical, ongoing support every step of the way.
The LMCT Application Process
Initial Interview
We begin with an obligation-free consultation to understand your current situation, business goals and plans for becoming a licensed Motor Car Trader. During this discussion, we'll explain the licensing process, answer any questions you may have and determine the most suitable licence type and business structure for your circumstances.
Business & Premises Review
Once you're ready to proceed, we'll review your proposed business structure, trading name and business premises. We'll discuss any requirements that may apply to your location and identify any potential issues before the application is lodged, helping to avoid unnecessary delays.
Application Preparation
Our team will guide you through the information and documentation required for your application. We'll prepare the necessary forms and supporting documents, ensuring your application is complete, accurate and presented in the best possible manner before submission.
Application Lodgement & myCAV
Once your documents are ready, we’ll set up your myCAV account and lodge your LMCT application with Consumer Affairs Victoria (CAV) on your behalf. We’ll monitor the application and assist with any further information requirements.
Application Assessment
An officer from the Business Licensing Authority (BLA) will assess your application and may request additional information or clarification. Should this occur, we'll work with you to prepare the required responses and help keep the application moving through the approval process as smoothly as possible.
Licence Interview
As part of the licensing process, applicants are generally required to complete a telephone interview with the Business Licencing Authoirty (BLA). We'll provide guidance on what to expect, explain your obligations as a licensed dealer and help you prepare for the types of questions commonly asked during the interview.
Licence Approval
Once approved, you'll receive your LMCT number and can begin trading in accordance with your licence conditions. We'll explain any ongoing obligations relevant to your licence and provide guidance on the next steps for setting up your dealership operations.
Getting started with your licence
Once your licence has been approved, you're ready to begin operating as a Motor Car Trader. As an optional additional service, the LMCT Accounts team can assist with getting your dealership up and running, including guidance on dealer obligations, record keeping requirements, dealer plates and setting up the systems needed to trade efficiently from day one.
On Going Dealer Support
As your business grows, the LMCT Accounts team can provide ongoing support tailored specifically to Motor Car Traders. Our services include bookkeeping, BAS preparation and lodgements, Xero setup, dealer-specific accounting processes and compliance assistance to help keep your dealership operating smoothly.
Frequently Asked Questions
A Motor Car Traders Licence, more commonly known as an LMCT allows you to legally buy, sell and trade motor vehicles as a business in Victoria.
In Victoria, you generally need an LMCT if you buy, sell or exchange 4 or more vehicles within a 12-month period.
You may also need an LMCT even if you sell fewer than 4 vehicles if you are operating a motor vehicle sales business, advertising vehicles for sale, operating from business premises, or otherwise presenting yourself as a motor car trader.
Motor vehicle recyclers, wreckers and car removal businesses may also require an LMCT.
Not sure whether you need a licence? Contact us for obligation-free advice.
Consumer Affairs Victoria (CAV) is the Victorian Government agency responsible for regulating consumer and business matters across Victoria. CAV provides information, support and regulatory services across a range of industries, including motor car trading.
The Business Licensing Authority (BLA) is an independent regulator within the Victorian Government’s Consumer Affairs portfolio.
The BLA is responsible for determining licence and registration applications across a range of regulated industries, including motor car traders, estate agents, conveyancers, professional engineers and second-hand dealers and pawnbrokers.
For LMCT applications, the BLA assesses whether an applicant meets the requirements to hold a Motor Car Trader Licence and makes the decision to grant or refuse the licence.
To apply for a Motor Car Trader licence in Victoria, you must meet the following eligibility requirements:
Be at least 18 years of age.
Have no history of insolvency or disqualifying criminal convictions.
Have a suitable business premises from which to lawfully operate.
Have sufficient financial resources to run the business.
Demonstrate knowledge of your obligations under the Motor Car Traders Act.
Satisfy the BLA that you are a fit and proper person to hold a licence. This includes an assessment of your character, financial position, and ability to operate the business honestly and fairly.
You can apply as either. However, for most applicants, a company structure offers greater flexibility, professionalism and separation between personal and business assets.
A wholesale LMCT allows you to buy and sell vehicles exclusively with other licensed motor car traders. You cannot advertise or sell vehicles directly to the public under a wholesale-only licence.
A retail LMCT allows you to buy and sell vehicles to both other dealers and members of the public. Retail trading comes with additional consumer obligations, including requirements relating to statutory warranties, cooling-off rights and prescribed documentation.
You can choose to start with a wholesale licence and, if your business grows or your goals change, apply to add retail trading to your licence at a later date.
No, industry experience is not a requirement for obtaining your LMCT. However, it can be beneficial, as you will need to demonstrate you have sufficient knowledge of the Motor Car Traders Act 1986 and the Motor Car Traders Regulations 2018 to carry on your business.
Yes. To get your Motor Car Trader Licence in Victoria, you must have a business premises that you can legally operate from, even if you only sell cars online or wholesale.
The Business Licensing Authority requires:
A Victorian business address
A lawful location where vehicles are stored
Proof that you can use the premises (such as a lease, sublease, or ownership documents)
Council confirmation that motor car trading is allowed at the premises
In most cases motor car trading is considered a physical business activity, and vehicles must be kept at a lawful location and be available for inspection by regulators.
Yes, it is possible to operate an LMCT business from a home address, as the Motor Car Traders Act doesn’t outright prohibit a Motor Car Trader from operating from a residential address.
However, you still need to meet your local council’s planning requirements for the way the property will be used.
Most planning provisions generally place restrictions on activities such as vehicle storage, display and customer visits. Council will consider how you intend to use the property and whether the proposed use is permitted under the relevant planning scheme.
In many cases, a home address may be suitable for the administrative side of the business only, while a separate location is required for vehicle storage.
If your LMCT is operating from home, you may also have restrictions on how the business operates, including:
Administration: Business administration can be conducted from the approved home address.
Customer attendance: Customers cannot attend the home address or the separate vehicle storage address.
Vehicle display and sales: Vehicles cannot be displayed or sold from either location.
Advertising: You cannot advertise the home or storage address as a place where customers can attend to view or purchase vehicles. Customer attendance, vehicle display and other retail activities may require separate planning approval.
Consumer Affairs Victoria (CAV) government fees:
Company or Partnership Licence: $2,965.20 Application fee: $1,184.70 + first annual licence fee: $1,780.50
Sole Trader Licence: $2,917.80 Application fee: $1,184.70 + first annual licence fee: $1,733.10
Government fees are separate from our professional service fees and are subject to change.
Depending on your circumstances, you may also need to budget for:
Professional assistance with your application
Document certification
Council or planning fees
Other business setup costs
Working capital
There is no set minimum amount of capital required to obtain an LMCT.
The funds you’ll need will depend on your business model, the types of vehicles you plan to sell and the volume of vehicles you expect to trade.
As part of your application the BLA will assess whether you have sufficient funds to operate your proposed business. You’ll need to provide a business plan and cash flow projections to support this assessment.
We can prepare these documents for you based on your financial position and business goals.
myCAV is Consumer Affairs Victoria’s (CAV) online portal used to submit and manage applications for licences, registrations and other services.
Your LMCT application is lodged through myCAV, and CAV uses the portal to communicate with you and request any additional information or documents required during the assessment process.
The timeframe varies depending on your circumstances, particularly whether your business premises are already approved and how quickly the required documents can be provided.
Once a complete application is lodged, the Business Licensing Authority typically takes around 6–8 weeks to assess it.
However, delays can occur if council approvals are required, supporting documents are incomplete, or further information is requested during the assessment process.
Once your licence is granted, you'll receive your LMCT number and can begin trading in accordance with your licence conditions.
Obtaining your licence is only the beginning of your journey as a motor car trader. Unlike many LMCT application providers, we can continue supporting your business long after your licence is approved.
The LMCT Accounts bookkeeping team can assist with New Dealer Training, bookkeeping, BAS preparation and lodgements, Xero setup, dealer-specific accounting processes and ongoing compliance requirements.
Whether you're a first-time dealer or looking to grow your business, we can help you establish the systems, processes and record-keeping practices needed to operate efficiently and remain compliant from day one.
You may need to let the Business Licensing Authority (BLA) know if your business details change.
Most changes need to be updated with the BLA within 14 days.
You can update things such as:
Business, postal or contact details
ABN or business name
Directors, secretaries or other associates
Trading or vehicle storage addresses
The types of vehicles you trade
Franchise details
Your business website
Please note: If you change your business structure, move to a new company, or make changes to a partnership, you may need to apply for a new LMCT.
Still not sure? We'd love to hear from you
Click the button to fill out a form or give us a call to set up a free consultation.