The Regulations And Laws Governing Junkyards And Car Removal

A motor car trader’s license is not typically required for the purchase of wrecked, damaged, or unfinished vehicles at the end of their useful lives for scrap metal or the sale of parts; however, as of September 1, 2018, such purchases will require registration as a secondhand dealer. If you need help understanding regulations and laws related to junkyards, then dont worry; you should check existing companies that already follow these laws better, like cash for cars melbourne. 

You’ll need a dealer’s license if you want to sell cars.

A motor car trader’s license is required for any business that actively buys, sells, or exchanges motor vehicles from or to the public (or offers to do so), with the following exceptions: 

The car needs to be completed. 

It cannot legally be driven again, or the business is exempt under state or federal law.

You need a motor vehicle trader’s license if you want to buy, sell, or trade automobiles that have been written off but can still be fixed or restored (unless the transaction falls under an exception).

A motor car trader’s license is not required if the vehicle no longer meets the legal definition of a “motor car.” Vehicles damaged beyond the point of restoration or repair are just one example (such as burnt-out or water-damaged vehicles).

You are subject to the same requirements of the Motor Car Traders Act 1986 as any other licensed motor vehicle dealer if you wish to get a motor vehicle dealer’s license.

Conditions under which an authorized secondhand merchant license is required

A separate secondhand dealer’s license is optional if you are already a licensed motor car trader who buys and sells motor cars and parts at cash for unwanted cars melbourne. However, the Secondhand Dealers and Pawnbrokers Act of 1989 still applies to your business.

You need a secondhand dealer’s license to operate as a wrecker or recycler, but a motor vehicle dealer’s request is optional if all you do is buy and sell auto parts.

• Check out our pawnshops and used-goods dealers registration page for further details.
• Exemptions

There is no need for a license for the following deals:

• Conduct business with a certified automobile dealer, a special trader (such as a financier or manufacturer), or an employee to buy, sell, or exchange motor vehicles.
• Repossession and resale, in which a financial institution sells a customer’s returned vehicle at auction or through a bid process.
• A financier who repossessed the vehicles to find new owners held a private sale.
• Offering to sell an automobile to a person who has rented or leased the car for at least three months before the sale. (Please be aware that this does not negate the need for a license for rent-to-own enterprises.)

Purchasing and selling vehicles at public auction, when the previous owners may have been: a government agency or other public statutory authority; a firm whose operations have been dissolved, with the vehicles being sold by the liquidator; a local council;

Insurance provider when the car is damaged and the fair cost to fix it is more than $4,000, and the deceased person’s estate is handling the settlement (or the value of the car).

Unfinished automobiles and components

Automobiles that are missing parts or no longer run may be purchased by wreckers and recyclers for:

The car can be sold for scrap metal to wreckers or metal recyclers, components to consumers or repair shops, restoration and resale to the public, or sale to the public in its unrestored state.

Paneling, wheels, engine components, windows, mirrors, and dashboards are all examples of vehicle parts.

A vehicle is considered complete if it:

1. Seems to be an objective observer to be a motor vehicle.
2. Has an engine.
3. It can be put back on the road.

The vehicle doesn’t need to run (or even have an engine).

From September 1, 2018, you must register as a used automobile dealer even if you do not sell entire vehicles or parts.

Conclusion

The Business Licensing Authority can help you determine whether or not you need a license to operate as an auto wrecker or recycler. Independent legal counsel is another option.