Motor Vehicle Sales Act 2003

Preliminary provisions - Interpretation - Meaning of motor vehicle trader

8: Who is treated as motor vehicle trader

You could also call this:

"Who is considered a motor vehicle trader under the law?"

Illustration for Motor Vehicle Sales Act 2003

You are treated as a motor vehicle trader if you say you are one or act like one. You can say you are a motor vehicle trader by advertising or telling people that you sell motor vehicles. You can also act like a motor vehicle trader by showing that you are ready to sell motor vehicles. You are also treated as a motor vehicle trader if you sell more than 6 motor vehicles in a certain period, unless you can prove you did not sell them to make money. You are treated as a motor vehicle trader if you import more than 3 motor vehicles in a certain period, unless you can prove you did not import them to sell for money. There is an exception for some organisations, like trustee corporations, that act on behalf of someone else, as defined in section 9 of the Trusts Act 2019, unless they are acting for the same person or estate.

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This page was last updated on 9 November 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM188541.

Topics:

Money and consumer rights > Consumer protectionBusiness > Industry rules

7: Meaning of motor vehicle trader, or

"Who is a motor vehicle trader?"

9: Who is not treated as motor vehicle trader, or

"Who is not considered a car salesperson under the law"

Part 1Preliminary provisions
Interpretation: Meaning of motor vehicle trader

8Who is treated as motor vehicle trader

A person is treated as carrying on the business of motor vehicle trading for the purposes of this Act if—
the person holds out that the person is carrying on the business of motor vehicle trading; or
in any specified period, the person sells more than 6 motor vehicles, unless that person proves that those motor vehicles were not sold for the primary purpose of gain; or
in any specified period, the person imports more than 3 motor vehicles, unless that person proves that those motor vehicles were not imported to be sold for the primary purpose of gain.

For the purposes of subsection (1)(a), a person holds out that the person is carrying on the business of motor vehicle trading if that person—
advertises or notifies or states that the person carries on the business of motor vehicle trading; or
in any way represents that the person is ready to carry, or is carrying, on the business of motor vehicle trading.

Subsection (1)(b) does not apply to any trustee corporation (within the meaning of section 9 of the Trusts Act 2019) acting in the capacity of executor, administrator, trustee, guardian, committee, manager, agent, attorney, or liquidator, or in any fiduciary capacity, unless the trustee corporation is acting on behalf of the same person or estate.

Notes

Section 8(3): amended, on 30 January 2021, by section 161 of the Trusts Act 2019 (2019 No 38).