Car Dealership Licence Application In South Africa

A motor dealer is defined in the National Road Traffic Act as

Motor dealer” means any person who is engaged in the business of buying, selling, exchanging or repairing motor vehicles required to be registered and licensed in terms of this Act or of building permanent structures onto such vehicles and who complies with the prescribed conditions;

With the above in mind, any person or business entity who falls within this category, wishing to register as a “Motor dealer”, should apply at their appropriate registering authority.

The requirements are that the following documents be submitted with the application.

  • Letter on a Company letterhead, stating nature of business.
  • Letter nominating the proxy.
  • A certified copy of the proxy’s ID
  • A CK document in respect of the entity applying
  • A SARS tax clearance.
  • Proof of business address in terms of FICA, eg water and lights account.

Once registered as a “motor dealer” the applicant may apply of the issue of a “motor trade number” in terms of regulation 70 of the National Road Traffic Act 93 of 1996.

Such application should be made on form MTN 1.

Accompanied by the appropriate fees, such application will be made at the appropriate registering authority.

Motor trade numbers or MTN’s may only be used in the following circumstances.

(1) Notwithstanding any provisions to the contrary contained in Chapter III of the Act, a manufacturer, builder or importer, which is registered, a motor transport contractor or motor dealer, may operate a motor vehicle which is to be registered and licensed in the Republic in terms of Chapter III of the Act but has not been registered and licensed or registered in terms of Chapter III of the Act but not licensed and which may not otherwise be operated on a public road, on a public road under a motor trade number issued in terms of this Part for the purposes of –

(a) delivery within the Republic, such motor vehicle by a motor transport contractor, in the course of his or her business;
(b) delivery within the Republic, sale, exchange, repair or building of a permanent structure on such motor vehicle by a motor dealer;
(c) delivery within the Republic or testing by the manufacturer, importer or builder of such motor vehicle; or

Provided that in the case where such motor vehicle is loaded onto another motor vehicle and if any part of the motor vehicle loaded onto such motor vehicle is operated on a public road, the motor vehicle concerned shall display a motor trade number in the prescribed manner.

(2) A person who is a bank, as defined in the Banks Act, 1990 (Act No. 94 of 1990), and who is a credit grantor in respect of a motor vehicle which –

(a) is subject to an instalment sale transaction, or a leasing transaction; and
(b) it desires to operate on a public road for the purpose of repossessing such motor vehicle, may, if such motor vehicle may not otherwise be so operated, operate such motor vehicle on a public road under a motor trade number issued in terms of this Part.

(3) No person shall operate a motor vehicle under a motor trade number, except for the purposes referred to in this regulation.

(4) No person shall operate a motor vehicle not intended to be registered in the republic in terms of the provisions of this Act, under a motor trade number.