Running a licensed dealership in Victoria means operating under the Motor Car Traders Act and staying on the right side of Consumer Affairs Victoria. Most dealers know the rules in broad terms but do not always have a clear list of what needs to be in place before and after each sale. This is that list.
Before You Put a Vehicle on Sale
Documentation you should have on file before a vehicle is offered to the public:
- [ ] Dealing Book entry (acquisition side): Record the purchase date, seller's full name, address, and contact details, and the price paid. This must be entered at the time of acquisition — not retrospectively.
- [ ] Registration details confirmed: Check the registration is current and matches the vehicle. A vehicle with lapsed registration cannot be sold as registered.
- [ ] RWC (Roadworthy Certificate): Required for the sale of any registered motor vehicle. The certificate must be less than 30 days old at the time of sale. The certifier's details and certificate number must be recorded.
- [ ] PPSR (Personal Property Securities Register) check: Confirms there is no finance owing on the vehicle and it has not been reported stolen. Keep a copy of the search result in your records.
- [ ] Odometer reading recorded: Enter the odometer reading at the time of acquisition. Odometer discrepancies are a common compliance issue.
During the Sale
- [ ] Buyer's details captured in full: Full legal name (as it appears on their driver's licence), residential address, phone, and email. These must match what goes on the Form 4 and buyer paperwork.
- [ ] Sale price agreed and documented: The agreed price must be recorded clearly. Do not leave the sale price field blank or approximate.
- [ ] RWC provided to buyer before or at time of sale: The buyer must receive the RWC. Keep a copy.
- [ ] Form 4 (Transfer of Registration) completed: Both you (as the licensed trader) and the buyer sign. Lodge with VicRoads within the prescribed period (currently three business days). Keep a copy.
- [ ] Buyer Paper (Purchaser Statement): Provide a copy of the signed agreement to the buyer at point of sale.
After the Sale
- [ ] Dealing Book updated (disposal side): Record the sale date, buyer's name, address, and the selling price. The Dealing Book must have both acquisition and disposal details for every vehicle sold.
- [ ] Form 4 lodged with VicRoads: Confirm it has been submitted within the required timeframe.
- [ ] Copies retained: Keep copies of the Form 4, buyer paper, seller paper, RWC, and PPSR check. Consumer Affairs Victoria can request to inspect these at any time — with no advance notice required.
Common Mistakes That Lead to Compliance Issues
1. Retrospective Dealing Book entries. The Dealing Book must reflect the actual date and details at the time of each transaction. Entries made after the fact — even if the underlying transaction was legitimate — are a compliance risk.
2. Selling with an expired or missing RWC. The 30-day validity is strictly enforced. If you are selling a vehicle and the RWC is 31 days old, you need a new one.
3. Incorrect buyer details on Form 4. The buyer's name on the Form 4 must match their licence exactly. Nicknames, abbreviations, or missing middle names can cause transfer delays and put you in a compliance grey area.
4. Failing to do a PPSR check. If a vehicle you sell turns out to have finance owing on it, you — the licensed trader — can be liable, not just the seller. A PPSR search costs a few dollars and takes minutes.
5. Not retaining copies. "I filled in the Form 4, I just don't have a copy" is not a defensible position in an audit. Every document that leaves your premises should have a copy in your records.
How Long to Keep Records
Under the Motor Car Traders Act, records must be kept for seven years from the date of the transaction. This includes Dealing Book entries, Form 4 copies, buyer and seller statements, RWC certificates, and PPSR search results.
If you are using digital records, they must be accessible and printable on request.
When Consumer Affairs Victoria Visits
CAV inspections of dealerships can be announced or unannounced. When an inspector arrives, they will typically want to:
- View your current Dealing Book (all open deals)
- Cross-check Form 4 lodgements against your records
- Confirm RWC certificates are in place for any vehicles currently on sale
- Review any complaints that have been lodged against your business
The dealers who handle inspections without issue are the ones who keep accurate, current records — not as a special effort when they know an inspection is coming, but as a normal part of every sale.
Compliance is not paperwork overhead — it is the evidence that you ran a clean, professional operation. The dealers who treat every deal as if it will be audited are the ones who never have to worry when it actually is.