Dubbo City Council will crack down on the illegal practice from Monday, despite community remonstration.

The council had previously floated an idea that a community-run enterprise could replace the unofficial car lot, which has popped up at various locations across the city.

Dubbo mayor Mathew Dickerson this week reported making approaches to Dubbo's four Rotary clubs and two Lions clubs to broach the idea.

Representatives from the four Rotary clubs and one Lions club met with him, the mayor said.

The representatives pledged to take the idea to their clubs, Cr Dickerson said and he was hopeful of a resolution to the perennial problem.

"There was enough intent there that I think you will see a car sale of some description, where people with cars to sell would pay money to the service clubs to have their car on the lot," he said.

"The clubs will come up with their own business model, it might be fortnightly, it might be monthly."

Cr Dickerson saw no need for the council to be directly involved, but it had provided what could be a helping hand.

The council had offered the use of the showground for free, should the clubs want to take it up, he said.

The venue's benefits were that it was a safe environment and a sale would not need approval under a separate development application, he said.

The council had made the offer on the basis that it would be a not-for-profit service clubs involved, not commercial businesses, he said.