You’ve found a car you love in New South Wales, started imagining the drives ahead and signed off on the purchase. But what if something happens right after that makes you reconsider buying that used car? You signed on the dotted line, surely there’s no going back now? Well, in New South Wales, if your dealer arranges finance or points you to a lender, you have some wiggle room to back out of the purchase. It’s called the cooling-off period and in NSW, you get one business-day to invoke it. Think of it as a safety net: a small window to pause, rethink, and make sure your choice is exactly what you want.
And if you’re buying from a dealership or Cars24 in Sydney, their 7-day return policy adds an extra layer of comfort. It’s not just about buying a car—it’s about buying confidence.
What is the cooling-off period?
- It lasts one business day from the date you sign the contract, usually ending at 5pm the next business day.
- A Form 12, also called a cooling-off notice, is part of the contract for dealer-financed cars.
- During this period, you can cancel the contract by giving the dealer a signed written notice.
How to use your cooling-off rights
You must notify the dealer in writing before the cooling-off period ends. This can be done by:
- Handing a signed note to a key person at the dealership
- Sending it via registered post
- Emailing or faxing the notice
Always keep proof that the dealer received your notice.
Fees and refunds
If you cancel within the cooling-off period:
- The dealer can charge $250 or 2% of the purchase price, whichever is lower.
- The rest of your payment must be refunded promptly.
Waiving your cooling-off rights
You can choose to waive the cooling-off period, but:
- The waiver must be signed in front of an independent witness.
- Dealers cannot pressure you into signing.
When cooling-off period doesn’t apply
The one-day cooling-off period for used car buyers in NSW only applies to linked credit arrangements. It doesn’t cover:
- Cash purchases without dealer-arranged credit
- Cars purchased in a company or body corporate’s name
- Commercial vehicles
Final advice
NSW’s cooling-off period may seem like a tiny window of time, but an important protection for used car buyers, especially if your car purchase involves dealer-arranged finance. Taking a moment to reflect can save stress about future ownership concerns with regards to financial security or mechanical and maintenance concerns about any make or model. With these state-specific protections and return policies from trusted platforms like Cars24 in Sydney, you can drive away confidently in your choice.
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