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NSW cracks down on unlicensed car dealers

By Sloane Pemberton November 5, 2026
NSW cracks down on unlicensed car dealers - unlicensed car dealers
Authorities handed out $130,000 in penalties during the 2026 NSW unlicensed car dealer crackdown.

New South Wales authorities launched a crackdown on unlicensed car sellers and repairers, handing out penalties worth $130,000. The operation focused on cases involving manipulated odometers, defective vehicle sales, forged inspection records, and unlicensed traders moving cars without proper credentials.

Beginning in July 2026, consumer complaints prompted investigators to carry out over 200 inspections of dealerships and suspected unlawful traders in Sydney, the Central Coast, and regional NSW. This focused initiative has led to 65 enforcement measures, comprising 40 fines that add up to $130,000.

Unlicensed Dealers

In New South Wales, a motor trader licence is mandatory for anyone selling five or more cars within a 12-month period. In August 2026, an unlicensed NSW car dealer was required to compensate victims with $75,000 after investigators discovered they had fabricated vehicle service records and altered odometer readings on multiple vehicles.

During a separate probe in July 2026, another unidentified operator faced conviction for unlicensed motor dealing and fraud related to odometer manipulation. The anonymous individual sold 30 vehicles with adjusted odometer readings and generated over $194,000 in income.

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Odometer Tampering

The state agency has noted that odometer tampering has spread to other states, such as Victoria. The state’s Consumer Affairs division previously examined the growing issue of this deceptive car practice by reviewing 50 cars bought by these offenders at auctions.

For 28 per cent of the advertised vehicles, the odometers had been lowered by more than 25,000km since the cars were auctioned. In particularly egregious instances, one consumer purchased a used Nissan X-Trail without realizing the SUV’s mileage had been reduced by an astonishing 225,116 km.

Anoulack Chanthivong, the Minister for Better Regulation and Fair Trading, stated that the government agency is probing criminals who target consumers online. “We’re targeting unlicensed, rogue operators who think they can fly under the radar by trading online, hiding in suburban backyards or advertising through social media platforms,” Minister Chanthivong said.

Mark Jackson, Member support manager at MTA NSW, informed Drive in October 2026 that licensed dealerships are legally bound to make certain the vehicles they sell are safe and operational. “The dealer has responsibilities when selling any used car and has to have a safety inspection completed, declare any accident history, and have any relevant information registered on the Personal Property Securities Register (PPSR),” Jackson said.

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