Why You Need an LMCT Licence to Sell Cars in Australia

If you're thinking of starting a vehicle sales business in Australia, one of the first things you need to understand is the legal requirement for an LMCT — Licensed Motor Car Trader — licence. Whether you're selling passenger vehicles or commercial trucks, having an LMCT licence is essential for operating legally and gaining consumer trust.

This article explains why the LMCT is necessary, particularly for those based in Victoria, and how it connects to both a motor car traders licence in Victoria and a truck traders license in Victoria.

truck traders license in Victoria


What Is an LMCT Licence?

An LMCT licence is a legal requirement for anyone who wants to buy, sell, or exchange motor vehicles commercially in Australia. It ensures that traders meet certain industry standards, maintain ethical practices, and provide a level of security and protection to buyers.

In Victoria, this licence is issued by Consumer Affairs Victoria (CAV) and applies to anyone trading more than a few vehicles a year — typically four or more.

Why Is the LMCT Licence Important?

1. Legal Compliance

The most obvious reason for having an LMCT licence is that it’s required by law. Selling vehicles without one is considered illegal and can result in heavy fines, prosecution, or being permanently banned from trading.

If you are planning to operate in Victoria, securing a motor car traders licence in Victoria is the only way to ensure your business is legally compliant.

2. Builds Trust with Buyers

An LMCT licence signals to customers that you are a legitimate trader who adheres to industry rules and consumer protection laws. Buyers are far more likely to trust and purchase from a licensed dealer than from an unlicensed one.

This is especially important in sectors like commercial vehicle sales. If you're focused on selling trucks, having a truck traders license in Victoria helps demonstrate credibility in a niche where reliability is key.

3. Access to Wholesale Auctions and Trade-Only Platforms

Licensed traders often get exclusive access to dealer-only vehicle auctions and wholesale trading platforms. These can significantly reduce your vehicle sourcing costs and improve profit margins.

Without an LMCT, you're limited to retail channels and may miss out on these industry advantages.

4. Consumer Protection

The LMCT framework ensures that dealers meet certain standards, including:

  • Clear disclosure of vehicle history

  • Cooling-off periods for buyers

  • Proper documentation and warranties

Holding a motor car traders licence in Victoria means you’re part of a regulated environment where both parties are protected.

5. Ability to Sell Vehicles on Consignment

If you plan to sell vehicles on behalf of others, also known as consignment sales, having an LMCT is not optional. In Victoria, this type of business arrangement legally requires a licensed dealer to hold a trust account and operate under specific regulations.

Who Needs a Truck Traders License in Victoria?

If your business revolves around buying and selling trucks — either light commercial vehicles or heavy-duty transport vehicles — you fall under the same rules as car dealers. You will still need to apply for an LMCT licence, often referred to informally as a truck traders license in Victoria.

There are no separate licences specifically for truck traders, but your vehicle classification may affect requirements such as space, safety checks, and record-keeping.

How to Apply for an LMCT Licence

The process of applying for a motor car traders licence in Victoria includes:

  • Ensuring your business premises comply with local council zoning

  • Passing a police check and background screening

  • Submitting financial records to show stability

  • Paying the required application fee

  • Providing evidence of insurance and (if needed) trust account setup

The full application process is managed by Consumer Affairs Victoria.

Whether you’re planning to sell cars, 4WDs, or trucks, obtaining an LMCT licence is essential if you want to run a legal and trustworthy vehicle trading business in Victoria. The motor car traders licence in Victoria is your official approval to operate, while the so-called truck traders license in Victoria ensures you meet the same legal and ethical standards for commercial vehicles.

Don’t risk fines or a damaged reputation — apply for your LMCT licence before you start selling.

Location: Victoria, BC, Canada

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