Hello all, is there any documented evidence on the number of private car sales a person can make within a period of time in NSW?
Came across few rumours, but couldn't find any solid evidence!
Thanks!
Limits of Private Car Sales in NSW
LMachineLearner on 07/11/2017 - 20:04
Comments
Thanks mate for the reply, this helps. However, the issue is there isn't an exact number to be found.
I think that is because they want to penalise somebody for as few as a single car sale, if they are operating as a dealer and behaving in a dodgy way.
I don't think they will ever reveal a number under which you would be guaranteed safe if you were operating as a business.
Euphemistic below says 10 in a year, which I would think problematic if you got a complaint against you, for example.Fair point, thanks heaps mate!
A bloke at work got the chat from the registry office that if he sold any more cars he'd have to get a dealer licence. He backed off for a bit and still buys, fixes and sells a few. Not sure, but I think it was around 10 in a year.
A mechanic i know does this he was repairing cars that we're being auctioned off in his free time, because they were deemed to costly to repair, so he was buying what he could fix and make a profit to cover more than just his time fixing them up, he would run them over the pits before selling.
He was told to keep it to a max of 5 a year total. so if he replaced his car and his wife's in the same financial year he was limited to 3 repair and rebuilds that he could sell.
For the physical proof i'd make a call to the ATO or an accountant you may know.
From Whirlpool Poster "luckyrabbitfoot"
People get very agitated and interested about the "magic number" but it's really irrelevant – the only reason the rule exists is as a rule of procedure to save trading standards having to prove that someone who sells loads of cars is actually a trader.
To recap for the OP: just because you change your personal car every month because you're rich/indecisive, it doesn't mean you're a trader because you bought/sold 13 cars. Just because you're a backyarder (unlicensed trader), it doesn't mean you don't need a licence just because you only sold 3 cars. If you deal cars, you need a dealer's licence.
"Documented evidence" and "solid evidence" often need to be tested in a courtroom.
It would be helpful if the OP gave a little context to their question.
There's no set number because that would allow for loopholes. Are you making money on selling cars? Congrats you're a dealer.
http://www.fairtrading.nsw.gov.au/ftw/Businesses/Specific_in…
Reading that, I would suggest if you are making a loss from a couple of cars sales, you are probably ok. But if you are making money from it, I suspect from the penalty amount they want you to be licensed. The licence fee also includes a compensation insurance scheme for dodgy operators, which suggests they would be keen to make sure everyone is appropriately licensed.
The underlying legislation defines carrying on a business:
https://www.legislation.nsw.gov.au/#/view/act/2013/107/part1…
In this Act, a reference to a person carrying on a business includes a reference to the person carrying on the business in partnership or by an employee, contractor, agent or other person.
It also says:
(1) A motor dealer means a person who carries on the business of dealing in motor vehicles as a retailer or on a wholesale basis.
(2) A person who carries on the business of assembling or manufacturing motor vehicles is not a motor dealer merely because the person sells any of those motor vehicles to a motor dealer or a financier.
(3) A financier is not a motor dealer.
(4) A motor vehicle broker is not a motor dealer.
If it were me, I would be very confident I could show I wasn't carrying on a business if I sold 2 cars in a year, maybe 3. If I was selling more than 5 or six I think it would be hard to defend you weren't operating as a business.