You have a cooling-off period when you buy a new or used car from a licensed motor car trader

• Cooling-off periods apply to new and used cars bought from licensed motor car traders from 1 December 2008. (This also applies to motorcycles, but not to commercial vehicles and vehicles bought by corporations.)

• A trader must give you Form 4, Cooling-off Rights and Waiving Your Cooling-off Rights, before you sign a sale agreement. This form sets out your rights and explains a waiver.

• The cooling-off period will end three clear days after you sign the agreement, or sooner if you sign a waiver during the cooling-off period.

• If you terminate the sale agreement for a new car or motorcycle, the trader may keep $400 or two per cent of the purchase price (whichever is greater).

• For an off-trade premises sale, the seller may keep $100 or one per cent of the agreed purchase price (whichever is greater).

• A trader is not obliged to order a new car or motorcycle from the manufacturer before the cooling-off period expires.

You can ask for information about a vehicle’s previous owner.

• If the last owner of a used car was a trader, the name and address of that trader is displayed on the car’s window display notice.

• If the last owner was not a trader, the words ‘name and address is available upon request’ is displayed on a used car’s window display notice, in the section detailing the last owner of a used vehicle.

• Traders must provide these details to prospective purchasers on request.

Useful publications:
Better Car Deals: Your guide to buying a new or used car
Tips on Buying and Selling a Car: Quick reference guide