Used Car Cooling Off Period Explained

Buying a car is no small purchase, often being the second biggest purchase of your life after a house. If the vehicle your purchase isn’t exactly as described, what rights do you have to back out of the contract? In Queensland, you may be entitled to the used car cooling off period, and here is what you need to know about it to help inform your next purchase.

Buy new or used cars with Brisbane’s premier car buying service by contacting us on 1300 286 844 or get in touch online today.

What Is a Used Car Cooling Off Period?

When you buy a used car from a licensed motor dealer in Queensland, you are entitled to a cooling off period of one business day. What this means is that you can change your mind and cancel the contract with the dealership after one day without incurring large penalties. It is important to know that if the dealership is open on the weekend these count as business days, and there is no cooling off period on new cars.

How Does the One Day Period Work?

After you sign the contract, the used car cooling off period will be one day, but this doesn’t mean 24 hours. The cooling off period will end at 5pm on the dealer’s next business day, or if the dealer closes before 5pm, it will end at their usual closing time.

Can You Drive the Car?

At the time of purchase, you can drive the car, but this will waive your right to a cooling off period. This rule has exceptions, and if you drive the vehicle to an independent mechanic for inspection or take it on a test drive you will still be entitled to a cooling off period.

When the Used Car Cooling Off Period Doesn’t Apply

There are a few exceptions to the rule that won’t grant you a cooling off period when buying a used car. These include buying the car on consignment, buying the car at auction, or buying a car privately from a non-licensed seller. You will also not be entitled to the cooling off period if you are buying a car for anything aside from personal use. The cooling off period will also not be granted on unregistered vehicles that cannot be registered or are being bought to be wrecked, nor on commercial vehicles or caravans.

When Is the Contract Binding?

Once the contract is signed it is legally binding for the dealer immediately. You as the buyer are legally bound by the contract as soon as the cooling off period expires, or if you drive off the lot with the vehicle during the cooling off period.

Are Deposits Required?

During the cooling off period, a dealership can charge you a non-refundable deposit. Don’t worry though, the amount cannot be more than $100. If you choose to go ahead with the sale, the deposit amount will be taken off the price of the vehicle. If you chose to cancel the contract, the dealership can keep some or all your deposit.

How To End the Contract

If you choose to end the contract for any reason you will have to write to the dealer. You can inform the dealer that you don’t wish to go through with the contract in person, by email, or fax. If you are within the one-day period, a dealer cannot refuse your request to use the rights granted by the cooling off period.

Make Car Buying Easier

At Torr Automotive, we are the go-to car wholesalers in Brisbane. We provide car buying and selling services to remove the hassle associated with doing it yourself. Our auction, wholesale, and consignment services give you the choices to buy and sell how you want. Let the experts handle the hard work while you sit back and relax. Contact us on 1300 286 844 or get in touch online.