These guidelines have been developed to assist those working in the motor dealing industry. They are a guide only and not a substitute for legal advice. If you are unsure of your obligations you should refer to the Motor Dealers Act 1974 or seek legal advice.

If you hold a licence you are required to keep a register of all motor vehicles that you have acquired and/or disposed of. In the case of an auto-dismantler you are required to keep a register of all parts and accessories that have been acquired and/or disposed of.

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The type of register you keep depends on the nature of your business. The following provides a brief description of the information required to be kept:

For motor dealers:

• details of every second-hand motor vehicle purchased
• details of the disposal of each vehicle.

For auto-dismantlers:

• details of every motor vehicle and every prescribed part or accessory purchased
• details of the disposal of each vehicle and of each part or accessory.

For wholesalers:

• details of every second-hand motor vehicle purchased
• details of the disposal of each vehicle.

For motor vehicle parts reconstructors:

• details of every part or accessory purchased
• details of the disposal of each part or accessory.

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You can keep your records either in writing or with a computer program.

Written records

A register that is kept in writing must be kept in a series of books that meets the following requirements:

• each book must consist of pages permanently bound together
• each book must bear on its front cover a number corresponding to its number in the series (such as, Book 1, Book 2 and so on)
• each book must be used for the purposes of one kind of register and for no other purpose.

Each record must be clearly legible, contain no deletions, not be torn or defaced and be on white standard A4 sized paper. If a record must be altered the change must still be legible, with the preferred method being a line through the deleted material used. 

Computerised records

A register that is kept by means of computer software must ensure that:

• the information in the register:
  • can be displayed and printed, on demand, at each place of business
  • when displayed or printed each page in the register is in the form prescribed for the register
  • includes the date on which each record was made.
• in the event that any information in the register is amended or deleted, a record is kept:
  • of the information prior to the amendment or deletion
  • of the date on which the information was amended or deleted.

If you are using computer software it must be able to provide a report on demand, displaying all original entries and changes. You must also have in place a procedure for backing-up data held in the register that should be held off premises and be readily available for inspection. Records must be available for display and printing at all times the dealer is open, it is good practice for the majority of staff to have access to print records.

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All forms required under the Act (eg. Form 4 and Form 8) that have been completed for the sale of a motor vehicle must be kept in individual binders for each type of form and filed in numerical order.

Only the final sale copy of a form for a particular vehicle needs to be retained and filed. The file copy should also be an exact signed copy of the form showing all particulars of the original.

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When selling a motor vehicle through private consignment you will have to keep a separate register detailing specifics of all motor vehicles being sold on consignment.

When selling a motor vehicle through consignment you will usually enter into a consignment agreement (unless selling on behalf of another dealer) which must include:

• name and address of yourself and the seller
• licence number of the dealer
• description of the vehicle, including registration number
• agreed price
• details of any encumbrance or no encumbrance
• the amount of the encumbrance (if any)
• date of commencement and termination of consignment.

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As a dealer selling a motor vehicle through consignment you must have a trust account with a financial institution in NSW. Once the vehicle is sold you must deposit the full sale price into the account within one day of the sale. The only time money can come out of the account is to pay the consignor the agreed price as set out in the consignment agreement.

The trust account must be audited every 12 months, with a copy of the report submitted to Fair Trading with the annual renewal of your licence. For an audit to be carried out you must keep a trust receipt book, cash book and deposit book.

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