The AADA has previously advised New South Wales (NSW) dealers of the new requirements introduced under the NSW Motor Dealers and Repairers Regulation 2025 (MDRA) governing the online sale of motor vehicles.
Following these changes, the AADA has received several enquiries from NSW dealers and DMS providers seeking clarification on online selling requirements.
The AADA sought clarification from the NSW Fair Trading Consumer Protection Investigation Unit regarding the intent of the new provisions, specifically, whether dealers are required to upload a Form 5 notice with each online vehicle listing and how an online motor dealer is defined under the legislation.
NSW Fair Trading provided the following advice and relevant legislative references from the Motor Dealers and Repairers Act 2013 (NSW) (the Act).
Operating as an ‘online dealer’
If a dealer has not nominated a URL (website) as a premises on their motor dealer’s license, then they currently cannot operate wholly or partly as an online dealer. To operate as an online dealer, a ‘change to notified premises form’ must be submitted and approved by Fair Trading, and a URL ending in “.au” must be submitted as part of this application. Online motor dealers are also required to notify the Secretary at least 20 days before commencing to carry on business as an online motor dealer.
Form 5 requirements
The requirement to make a Form 5 publicly available only applies to motor dealers who wholly or partly operate as an online motor dealer. An online motor dealer means a motor dealer who uses a website to offer for sale and sell motor vehicles to online purchasers. An online purchaser means a purchaser of a motor vehicle from an online motor dealer through the online motor dealer’s website (s4 of the Act).
Definition of ‘online dealer’
If a dealer (e.g. Bob & Bill’s Car Sales) maintains a website or advertises their vehicles on a third party website which offers vehicles for sale, but the sale is completed from either of the nominated physical premises (e.g. 12 Smith Street, Wollongong NSW 2500), then this is NOT considered the business of an online motor dealer.
If Bob & Bill’s Car Sales decides to become ‘partly’ an online dealer and a change to the notified premises form is submitted and approved, then online motor dealer requirements apply. In this circumstance, Form 5s must be publicly available on the online motor dealer’s website in addition to being attached to the motor vehicle. If a motor dealer is online only, then Form 5s are required to be publicly available on the website which is nominated on their motor dealer’s license.
The requirement to display a license number
NSW Fair Trading advise this requirement applies to all motor dealers regardless of whether they are online, partly online or not online. This means their license number must be prominently displayed in a reasonably prominent location on their website and advertising material.
Other
Form 5 motor dealer notices are only required to be advertised and completed for the sale of second hand and ex-demonstrator vehicles. If the second hand or ex-demonstrator vehicle is sold to a motor dealer, motor recycler or financier, then a form 5 does not need to be completed. (s60 of the Act)
Dealers currently operating as an online dealer have until 1 December 2025 to notify NSW Fair Trading and meet all other requirements.