Understanding your obligations as a trader
Being a registered motor vehicle trader means more than selling vehicles. You must also understand and meet your legal obligations. Keeping up to date with the law that applies to your business helps you avoid non-compliance, complaints, and enforcement action.
The Motor Vehicle Sales Act 2003 sets out the core requirements for motor vehicle traders, including registration, disclosure, record keeping, and compliance with consumer protections. Taking a proactive approach to these obligations helps you run your business confidently and lawfully.
Make legislative awareness part of your business routine
Successful traders treat legal compliance as an ongoing responsibility, not a one-off task. You should regularly check trusted sources to stay up to date with your obligations and any changes that may affect your business. These include:
Understand your obligations around repairs and timeframes
One area where familiarity with the law is particularly important is post sale responsibilities. Where consumer guarantees apply, traders are expected to address vehicle issues appropriately. This includes carrying out repairs within a reasonable time when required.
Traders who understand these expectations are more likely to act promptly when a customer raises a concern. This means:
- assessing the issue without delay
- clearly communicating expected repair timeframes
- arranging repairs efficiently.
Acting early and transparently can reduce frustration for customers and lower the risk of disputes being escalated to the Motor Vehicle Disputes Tribunal. The Tribunal has jurisdiction over certain claims relating to vehicle sales and consumer guarantees.
Maintain your registration
Another key obligation under the Act is remaining registered while carrying on the business of motor vehicle trading. Trading while unregistered is an offence. Failing to renew your registration on time can expose you to unnecessary compliance risk.
You can avoid this by regularly checking your Certificate of Registration, noting the expiry date, and renewing well before it lapses. You must also be able to display your certificate or produce it on demand. Staying familiar with these requirements helps ensure you can continue trading lawfully without interruption.
Compliance builds trust and protects your business
Understanding and meeting your legal obligations is not just about avoiding penalties. It also helps build trust with customers, supports fair trading, and protects your reputation as a professional trader.