Becoming a motor dealer

[bru21]

Just looking on the fowels website and you need to be a dealer to bid on cars and commercials.

How hard / time consuming are the courses required below?
How easy are they to convince that the premisis is suitable?
Just want to be able to buy about 5 cars a year.




The motor dealer licence allows you to:


obtain used motor vehicles for resale
sell used motor vehicles
sell used motor vehicles on consignment (on behalf of others for profit)
sell a leased motor vehicle to the lessee under the terms of the lease
obtain used motor vehicles, in parts or whole, to sell as complete units or parts
sell used motor vehicles as parts
negotiate on a person’s behalf for the sale or purchase of a used motor vehicle.
Eligibility
To be eligible for a motor dealer licence, you must:


be 18 years or over
be a suitable person
have at least one place of business in Queensland
be able to prove that the business premises comply with local government requirements
have completed the required training units through a registered training organisation.
An individual is considered suitable if they have not been:

bankrupt
convicted in the previous five years of a serious offence which is punishable by 3 or more years imprisonment, such as:

fraud and dishonesty
drug trafficking
extortion
arson
unlawful stalking
violence or the threat of using violence
any offence of a sexual nature

disqualified from holding a licence or registration certificate
recorded in the register of disqualified company directors under the Corporations Act 2001.
If you are not an Australian citizen, you need to provide an international passport to complete the check on your working visa. Your visa must state that you can work in Australia. You must also provide written advice from the Department of Immigration and Citizenship to explain any conditions on your visa.

Training requirements
Note: If you have held a motor dealer licence within two years of applying for the licence, you do not need to complete the training requirements.

To qualify for the motor dealer licence, you must successfully complete or be assessed as competent in the required modules from either of two Automotive Industry Retail, Service and Repair Training Packages (AUR99 or AUR05).

AUR99 modules

AUR38216A Determine used motor vehicle stock requirements
AUR41303A Apply sales procedures
AUR41769A Sell product
AUR41803A Apply legal requirements relating to product sales
AUR41903A Apply relevant finance, leasing and insurance contract/policies
AUR44230A Inspect and appraise used motor vehicles in preparation for purchase
AUR44355A Purchase used motor vehicles to supplement stock for sale
AUR63238A Manage complex customer issues
AUR70125A Follow workplace occupational health and safety procedures
AUR70314A Contribute to workplace communication
AUR70421A Establish relations with customer
AUR05 modules

AURS338216A Determine used motor vehicle stock requirements
AURS241303A Apply sales procedures
AURS241769A Sell product
AURS241803A Apply legal requirements relating to product sales
AURC341903A Apply relevant finance, leasing and insurance contract/policies
AURS344230A Inspect, appraise and purchase used motor vehicles to supplement stock for sale
AURC463238A Manage complex customer issues
AURC270103A Apply safe working conditions
AURC270789A Communicate effectively in the workplace
AURC270421A Establish relations with customer
Registered training organisations
For information on motor industry courses and training providers in Queensland, contact the National Training Information Service.

Applying for a licence
To apply for a motor dealer licence:

meet the eligibility criteria
complete the training requirements and attach proof of qualifications
complete PAMD Form 1-1 and notes - Application for individual licence (PDF, 624 KB)
provide originals or certified copies of your birth certificate, birth extract, passport, Australian citizenship certificate or drivers licence (see below for advice on getting certified copies)
provide certified, passport-quality photos of yourself
pay the licence fee of $1025 for one year or $1925 for three years
pay the criminal history check fee of $35.50
prove that your business premises complies with local government requirements, which involves providing one of the following:

a letter or certificate from the local government (town or shire council) where your business is located that clearly states the property is suitable for conducting a motor dealing business
evidence from the local authority confirming this (if the local government does not provide written approval but provides a self-assessment process), and a copy of the completed self-assessment

lodge the application (see the application form for lodgement details).


Criminal history checks

Applicants must undergo a criminal history check to confirm their suitability.

The criminal history check costs $35.50 (which includes $1.13 GST) for each person who appears on the application form. The fee applies to all applications and renewal notices.

Processing time
Processing time is 4-6 weeks. However, it can take longer if we need to contact you for missing information or fees.

The processing time may be up to six weeks because the criminal history check process, handled by Queensland Police, is thorough and time consuming.


Making the process quicker


Send certified documents

Take the original document and a copy to a Justice of the Peace or Commissioner for Declarations. They will stamp and/or sign the copy and write ‘This is a true copy of the original document’.

The Department of Justice and Attorney-General has a list of JPs in your area. Otherwise, contact your local post office, courthouse, bank, shopping centre manager or pharmacy.

We will send your original documents to you after we assess your application. Please note that a photocopy is not a certified document.

Pay all criminal history check fees
Remember to pay a separate fee for yourself and each person on the application form.

Refunds for unsuccessful applications
If your application is unsuccessful or it is withdrawn, you will receive a partial refund. Your application fee is non-refundable, but we will refund your licence fee and any unused criminal history check fees.

[SCANAS]

If you are only going to do 5 a year why not speak to a small dealer and ask to use their license and place of buinsess etc. You give them the cash they buy the car you recondition it in your own time, advertise it and sell it under their license. A dealer must give a statutory warranty 1month or 1,000ks for vehicles over 10 years or done more than 160,000klms or 3months or 5,000ks for newer vehicles travelled fewer klms. So you would need to come up with some arrangement with the dealer about potential warranty claims. So you are both protected. Just a thought.

I got my license last year, but I don't trade under it because I work for a large dealer anyway so have no need. I had to have mine so that I am responsible for the yard.

Feel free to PM any questions you might have

Dan

[bru21]

Thanks Dan. I will PM you later, regards Justin

[80's_delirious]

Are you sure Fowles require you to be a dealer? My brother has bought several cars from auctions of the last few years (mostly writeoffs) he is not a dealer, but had to register and put down a security deposit before he could bid I am sure he bought through Fowles recently.

[SCANAS]

They do both, some dealer only and some open to public. Fowles are mainly a consignment auction house, as in they generally don't own the cars they just charge a fee to auction them off. Other auciton houses have buyers who buy from dealers australia wide and the public and run them through themselves.

From my understanding if you are not a licensed motor dealer and not set up to trade you are not allowed to sell cars for profit.

[bru21]

It appears you can buy ski's, quads, boats, machinery, trucks, writeoffs just not cars and commercials without a dealer license. Just want to buy for friends / family and myself. Silly paying 12k for a 3k falcon just because I don't have a licence. Also want an s2000 writeoff for my next project, but I don't need a licence for that.

cheers bru

[SCANAS]

You can buy whatever you want without a license, some places only sell to dealers though. License is the first step to be legally able to sell cars for profit, lots of other stuff involved depending on how big of operation you want.

12k for 3K falcon? No one makes that much money. 400% return on investment... doesn't happen. Big dealers have big overheads so they are closer to 3-4% return on investment as in $1600 profit out of $40,000 invested when you take everything into consideration. Of course no one will believe me but that's cool. Small dealers trading from home will have a greater return on investment but you can no longer get a license for a residential address.

Anyone considering becoming a licensed dealer should consider everything involved, sounds simple but quite complicated really, License, Premises, Tax etc

Welcome to PM any questions i'll try and answer

[CWBYUP]

Does anyone know how you go in NSW to get a dealers license ?

Looking at doing it to build box trailers.

Cheers Nick

[SCANAS]

don't think you need one in qld for trailers? Not sure mate.