OCBA - Definition

Definition

A private person who sells or offers for sale or buys or offers to buy a second-hand vehicle is not normally considered to be a dealer. However, a person is required to be licensed as a second-hand vehicle dealer if they are carrying on a business as a dealer. A person who sells or buys a second-hand vehicle as part of a profit-making system may be considered to be a dealer. If you sell or offer to sell or buy or offer to buy four or more cars during a period of twelve months, the law presumes you are a dealer and it will be up to you to prove otherwise. If you and another person, who is your close associate, sell or offer to sell or buy or offer to buy, an aggregate of at least six second-hand vehicles during a period of 12 months, you and your close associate, will both be presumed to be dealers and it will be up to both of you to prove otherwise. If you have any doubts about this issue, you should seek independent legal advice.

Licence Not Required
You are not required to hold a licence as a second-hand vehicle dealer if you are:

a credit provider (as defined by the National Consumer Credit Protection Act 2009) and your business as a dealer is incidental to your credit business;
an auctioneer selling second-hand vehicles on behalf of others, who does not otherwise carry on the business of buying or selling second-hand vehicles;
the Crown.

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