Most people do not visit a car yard expecting to become experts in cooling-off law. The interest arrives later, when the contract is on the kitchen bench and the dealership has closed for the day.
Maybe the finance total looks different once every fee is on the same page. The car might be wrong for the garage, the family or the job. Sometimes the “yes” simply came out too quickly. If the total cost caused the surprise, read about the hidden costs of buying a used car.
Unfortunately, Australia has not arranged all of this into one tidy national rule. Your options change with the state, the seller and, in New South Wales, the finance. Even “business day” refuses to behave consistently. Saturday can count in Queensland and South Australia, while Victoria leaves weekends alone.
The law is less interested in when the nerves arrived than in where and how you bought the car.
What does a cooling-off period for used car purchases cover?
A cooling-off period lets an eligible buyer end a contract after changing their mind. The car does not need to develop a fault first.
It is not a free trial with the paperwork on pause. The dealer may keep part of your deposit or a set amount. Collecting the vehicle or signing a waiver can also end the right early.
It is also separate from a warranty or Australian Consumer Law claim. Cooling off is about the decision. Consumer guarantees are about a car that is faulty, not as described or unfit for a purpose discussed with the dealer.
Already signed? Start with the rule in your state
The headline number is not enough and “Three days” is little comfort if collecting the car switched the right off. Cars24’s Terms of Purchase set out the clauses applying to Cars24 sales governed by NSW, Victorian, Queensland, South Australian or ACT law.
| Where you bought the car | Do you get a statutory cooling-off period? | When does it end? | What buyers often miss |
| NSW | Dealer-provided, arranged or facilitated finance only | Usually 5pm on the next day the dealer opens | No cash or independent finance. Cost is the lower of $250 or 2% |
| Victoria | Eligible personal purchase from a licensed trader | Three clear business days, excluding weekends and public holidays | Collection ends it. Dealer may keep the greater of $100 or 1% |
| Queensland | Eligible used car from a licensed dealer | Usually 5pm on the dealer’s next trading day | Saturday may count. Driving away usually ends it. Non-refundable deposit capped at $100 |
| South Australia | Used and demonstrator vehicles from a dealer | Two clear business days. Saturday counts | Dealer may keep the lower of $100 or 2% |
| ACT | Eligible individual buyer | Three clear business days after signing | Approved loss-of-right form ends it. Dealer may keep the greater of $100 or 1% |
| Western Australia | No | Once buyer and dealer sign | Reasonable pre-estimated damages may apply, capped at 5% |
| Tasmania | No statutory right | No automatic window | Cancellation needs agreement, a contract term or another legal basis |
| Northern Territory | No | Once signed | Deposit may be lost, but a dealer cannot retain more than 10% of the price |
The state rules most likely to catch buyers out
Cooling-off period for a car purchase in NSW
NSW packs plenty of fine print into one business day. Its rule applies only to linked credit, where the dealer provides, arranges or facilitates finance. Cash and independently financed purchases sit outside it.
It usually runs until 5pm on the next day the dealer opens. A Friday contract can therefore expire at 5pm Saturday if the dealership trades that day. Different timing applies when it closes before 5pm.
Cancel in writing. The dealer may keep the lower of $250 or 2%. Only prescribed Form 12 can waive the right. Taking the car with the dealer’s agreement does not automatically end it, although you must return it and may be responsible for damage beyond fair wear and tear. This is why dealer-arranged car finance matters here, not simply whether a loan exists.
Used car cooling-off period in Victoria
Victoria allows three clear business days after signing with a licensed trader. Weekends and public holidays are left out, which looks relaxed by Australian cooling-off standards.
The keys are the catch. Accept delivery during those three days and the right ends. Notify the dealer in writing, confirm receipt and expect it to retain the greater of $100 or 1 per cent of the price.
Company, body corporate and commercial-vehicle purchases are excluded.
Cooling-off period in QLD, where Saturday may be day one
Queensland gives eligible used-car buyers one business day, but it uses the dealer’s trading calendar. Sign on Friday at a Saturday-opening yard and Monday will probably be too late.
Taking the car home normally ends the right. A test drive or independent inspection does not. The dealer must provide the prescribed form before signing. Without it, the period becomes seven days.
Private sales, auctions, consignment cars and some vehicle types are excluded.
South Australia and the ACT give more time, but not a free exit
South Australia allows two clear business days for dealer-sold used and demonstrator vehicles. Saturday counts. Give written notice before expiry. The dealer may keep the lower of $100 or 2 per cent. A waiver needs an independent witness. New vehicles, private sales and auctions are excluded.
In the ACT, an eligible individual buyer has three clear business days. Notify the dealer or agent in writing. Signing the approved loss-of-right form immediately before delivery ends the right. The dealer may keep the greater of $100 or 1 per cent. Dealers, corporations, commercial vehicles and public auctions are excluded.
In WA, Tasmania and the NT, the contract deserves an extra read
Western Australia has no automatic cooling-off period. Once both sides sign, the dealer may seek pre-estimated damages. Five per cent is the ceiling, not an automatic charge, and the amount must reflect its loss.
Tasmania has no statutory cooling-off right. The NT also treats a signed contract as binding. If finance is pending, add a finance condition. Otherwise, changing your mind could cost the deposit.
In these three places, sleeping on it is very much a pre-signing activity. Use a proper used-car inspection checklist before the contract becomes the problem.
A private sale does not come with a quiet change-of-mind window
Private sales have no statutory cooling-off period. A friendly seller may unwind the deal, but friendliness is not a legal right. Genuine auctions are generally excluded too. Online buying creates no national cooling-off period, so check which jurisdiction governs an interstate contract.
Match the seller with the rego papers, check the VIN, arrange an inspection and search the PPSR. Vague answers about ownership, finance or accident history mean slow down, not transfer faster. Use these questions for a private seller and run a car history check before paying.
If you want to cancel, put the phone down for a minute
Find the contract’s signing time, cooling-off box and any waiver. Check the dealer’s opening hours too, particularly in NSW and Queensland.
Leave the car with the dealer. Send written notice identifying yourself, the vehicle and the contract, then state that you are terminating under the applicable cooling-off right. Follow any prescribed form in the contract.
A phone call is useful for getting someone’s attention. It is poor evidence. Call after sending the notice, keep proof and ask what happens to the deposit, linked finance and trade-in.
Changed your mind or found a fault? They are different problems
A gearbox failure and buyer’s remorse are not the same legal problem. Once cooling off ends, Australian Consumer Law rights remain. A dealer-sold car must be of acceptable quality, match its description and suit a purpose discussed before purchase. A failure may bring a repair, replacement or refund.
Those rights do not usually cover buyer’s remorse or a cheaper listing appearing the next morning. The ACCC’s car guidance explains the legal difference. Cars24’s guide to used-car warranties covers the warranty side separately.
A return policy can be longer than the legal minimum
Cooling-off law and a seller’s return policy are easy to muddle together. They are not the same thing. A return policy is an extra promise offered on the seller’s own terms.
Cars24 currently gives eligible vehicles bought directly from Cars24 a 30-Day Return Guarantee, limited to 1,000 kilometres. It applies to eligible vehicles delivered on or after 19 February 2026. Dealer listings are excluded. Days one to seven include the service fee. From day eight to 30, the listed $499 to $999 fee is generally retained. Return conditions apply.
This is separate from cooling-off law. Read the Return Policy for eligibility. Still researching? Use the used-car buying guide before viewing used cars for sale.
Frequently asked questions
I paid a deposit but have not collected the car. Can I still walk away?
Not automatically. It depends on the state, whether the sale qualifies and whether time remains. Leaving the car with the dealer can preserve a right, but cannot create one.
Will the dealer return my whole deposit?
Possibly not. Victoria and the ACT use the greater of $100 or 1per cent. NSW uses the lower of $250 or 2 per cent, South Australia the lower of $100 or 2per cent and Queensland caps the non-refundable deposit at $100.
Does taking the car home end the cooling-off period?
It does in Victoria. It usually does in Queensland, except for a test drive or independent inspection. Agreed possession does not automatically end it in NSW. In the ACT, the approved loss-of-right form ends it.
Can I cool off after buying from a private seller?
No. Complete the inspection, PPSR search and paperwork checks before paying.
What if I bought the car online from another state?
No extra national period applies. Check which jurisdiction governs the contract, then read its rules and the seller’s return policy. Cars24’s guide to buying a car interstate covers the other paperwork and transport questions that tend to arrive with it.
Is an insurance renewal cooling off period the same thing?
No. It covers the policy, not the car contract. Moneysmart says most general insurance products provide at least 14 days, although a policy may allow longer. Check the PDS. Cancelling insurance does not cancel the car purchase.
The dealer’s Saturday opening hours are not thrilling reading, but they may matter more than the brochure. If your contract is signed, check the state rule, leave the car where it is and send written notice while there is still time.
| Information checked against current state and territory guidance, legislation, ACCC information and Cars24 policies on 1 September 2026. This article contains general information and is not legal advice. Rules and policies can change, so check your contract and the relevant consumer authority before acting. |
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