Dealer handing over car keys to the buyer

Selling cars - your responsibilities

If you’re in the business of selling cars – even as a side hustle – you might need a licence as a second-hand vehicle dealer. Big penalties may apply if you trade without a licence.

The Second-hand Vehicle Dealers Act 1995 requires that you hold a second-hand vehicle dealer’s licence if:

  • you buy, sell or offer for sale 4 or more vehicles in 12 months
  • you and a close associate (such as your spouse, partner, brother or sister) offer to buy or sell 6 or more vehicles in 12 months. Both you and the associate must have a licence.

Licensed dealers must not pretend to be private sellers to try to avoid their legal responsibilities.

Licensed dealers must understand and comply with their obligations, such as:

  • providing certain information to potential buyers
  • duty to disclose defects
  • duty to repair defects
  • written contracts
  • cooling off rights for buyers.

2025 changes

From 1 September 2025:

  • purchasers can no longer waive the dealer’s duty to repair a vehicle
  • a dealer's duty to repair includes the main propulsion batteries in hybrid and electric vehicles within the statutory warranty period
  • dealers can disclose defects that are agreed won’t be subject to their duty to repair, provided the vehicle is roadworthy.

Other new practicalities include:

  • removing the administrative burden of displaying the previous owner’s name and address (still available from the dealer/auctioneer on request)
  • removing the need to display the name and details of the last person the vehicle was leased to, if used as a taxi or hire car (still available from the dealer/auctioneer on request)
  • allowing dealers to include additional information in a contract of sale without taking away important information for buyers
  • streamlining of the prescribed form for sale of a vehicle or motorcycle.

New fillable forms can be found on SA.GOV.AU.

Tough new penalties started 1 July 2025 including:

  • unlicensed dealing incurring a maximum $250,000 penalty and/or two years imprisonment for individuals or $500,000 for companies
  • a 15-fold increase of the maximum penalty for odometer tampering to $150,000 – and/or two years imprisonment for three or more offences
  • a new offence for providing false and misleading statements about odometers, plus powers to require altered odometers to be corrected
  • allowing courts to order compensation for consumers affected by a private seller convicted of odometer tampering.

Advice about selling vehicles

Read more about your responsibilities when selling vehicles in the following information brochures.

Selling cars in South Australia

Information in other languages

Selling used cars – a basic guide:

Easy Read advice

See the Easy Read brochure for car sellers in clear, simple language with images.

Forms for vehicle dealers

See the fillable forms for second-hand vehicle dealers with the information that must be included in notices, contracts and other forms that licensed dealers are required to use.

Helpful links