What is a cooling-off period?
Cooling-off periods apply to cars and motorbikes bought from licensed motor car traders.
You have three clear business days (excluding weekends and public holidays) after you sign a contract to change your mind. This is your cooling-off period. However, if you choose to accept delivery of the vehicle during this three-day period, you will automatically lose your right to cool off.
Licensed motor car traders are required to include a prescribed information box in the contract of sale for each vehicle they sell, that sets out information about the cooling-off process.
A licensed motor car trader is not obliged to order a vehicle from the manufacturer before the cooling-off period expires. You should therefore clarify with the licensed motor car trader when you can expect to receive it.
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.