What is a cooling-off period?
If you buy your used car from a licensed motor car trader, you have three business days after you sign the contract to change your mind. This is the cooling-off period.
Before you enter into a sale agreement, the licensed motor car trader must give you a Licensed motor car trader form 4 (Cooling-off rights & waiver) (PDF, 66KB).
Changing your mind
If you change your mind, the dealer must be notified in writing. You should confirm with the dealer before the end of the cooling-off period that he or she has received the notification. The dealer can keep some of the deposit you have paid ($100 or one per cent of the purchase amount, whichever is greater).
There is no cooling-off period if the car is purchased in the name of a company or body corporate, or if it is classified as a commercial vehicle.
Waiving your cooling-off rights
The trader is not obliged to allow you to pick up the car during the cooling-off period. If you collect the car immediately, you may be asked to sign a waiver form, which removes your right to the cooling-off period.
Remember, the waiver applies only if you take immediate delivery of the car after signing the form.
Unless you sign a waiver form, the trader cannot sell the car you have traded in until after the cooling-off period.
If you take the car within the cooling-off period and then cancel the contract within the three days, you will have to pay for any damage you may cause to the car while it was in your possession (other than fair wear and tear).
Last updated: 21/05/2013