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Standard fact sheet.

Motor dealer information - records 

This information is prepared to assist those working in the motor dealer industry. It is a guide only and not a substitute for legal advice. If you are unsure of your obligations you should refer to the Motor Dealers and Repairers Act 2013, the Motor Dealers and Repairers Regulation 2014 or seek legal advice.

Do I need to keep a register? 

If you hold a motor dealer licence you are required to keep a register of certain motor vehicles that you acquire and dispose of. The relevant register is the Form 1: Motor Dealer’s Register. This replaces the former Form 1 and Form 2 and is designed to also include the details of vehicles sold by consignment.

Form 1 must be used to capture the:

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

If you operate from more than one licensed premises, you must keep at each of the premises a register of the vehicles sold and disposed of at that place of business.

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Transitional period for new requirements 

If you are an existing motor dealer licence holder as at 1 December 2014, you will have until 1 September 2015 to comply with the new requirements for record keeping. In the meantime, keep following the requirements under the former Motor Dealers Act 1974.

How can I keep my records? 

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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Motor dealer's notices 

You must use dealer's notices when you sell certain vehicles. For further information on the notices that you must use, please see:

What happens with the dealer's notices after the sale of a motor vehicle? 

You must keep a copy of dealer notices for three years after the sale of the motor vehicle.

In the case of notices produced using computer software, these must be kept in a loose-leaf folder 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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What records do I have to keep when selling a vehicle by consignment? 

If you intend to sell vehicles by consignment you must advise NSW Fair Trading before you start to sell by consignment. When selling a motor vehicle by consignment you must include details of the motor vehicle sold in Form 1 – Motor Dealer’s Register.

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

  • the name and address of yourself and the seller
  • your licence number and the seller’s licence number
  • a description of the vehicle, including registration number
  • an agreed price
  • the details of any encumbrance (including the amount) or no encumbrance
  • the directions for disbursements of the price agreed to be paid
  • the date of commencement and termination of consignment.

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What do I do with the money after the sale? 

As a dealer selling a motor vehicle through consignment you must have a trust account with an authorised deposit-taking institution in NSW. Once the vehicle is sold you must deposit the full sale price into the account by the next business 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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