A Motor Car Traders licence (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.

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 Business Licensing Authority 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.

There is no minimum amount of capital required to obtain an LMCT.

The amount of money you'll need depends 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 Business Licensing Authority will assess whether you have enough funds to operate the business successfully.

To support this assessment, you'll need to provide a business plan and cash flow projections.

We can prepare these documents for you based on your financial position and business goals.

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.

TBA