Buying a car

There are different laws and requirements covering vehicles sold privately and at motor dealers. Time limits apply to cancelling contracts, getting repairs or lodging disputes.

When you need legal advice

Get legal advice if:

  • you have signed a contract and can't meet your obligations or want to cancel it
  • you have purchased a used vehicle with a defective safety certificate and want to take legal action
  • a motor dealer has not given you the required documents for a used vehicle
  • the motor dealer has breached a sale contract and you want to cancel the purchase.

How to get legal advice

Legal protections when buying a used vehicle

There are legal protections for people buying second-hand vehicles from used car dealers. Not all these apply for vehicles purchased from a private seller.

If buying privately, make sure you search the Personal Properties Securities Register to check if the car:

  • has money owing on it
  • belongs to someone else
  • has been written off and repaired.

Search the Personal Properties Securities Register

Buying a car from a car dealer

When buying a vehicle from a used car dealer, you should receive:

  • a contract of sale
  • a safety certificate.

Be careful if you are asked to sign a document to 'hold' the car. Make sure you are not signing a contract, unless you are ready to buy the car.

Contract of sale

Before signing a contract of sale, the dealer must give you a notice that includes details about:

  • the motor vehicle
  • a cooling-off period
  • the non-refundable deposit amount
  • a statutory warranty.

If you are borrowing money to buy the vehicle, make sure the contract is subject to finance, so you don't have to go ahead with the purchase if the loan isn't approved.

Once you sign a contract of sale, the dealer must give you a copy of the contract in writing, which includes:

  • a notice with the cooling-off period
  • a statement confirming you have clear title to the vehicle.

Safety certificate

If the vehicle is registered, the motor dealer must give you a current safety certificate, which:

  • is prepared at an authorised inspection station
  • certifies the vehicle is roadworthy—this does not prove the car is mechanically sound. You should arrange your own mechanical inspection of the car before purchase, rather than relying on the safety certificate as proof the car will be reliable.

If the safety certificate is defective:

  • get legal advice to find out what legal action you can take against the motor dealer and/or motor mechanic
  • make a complaint to the Department of Transport and Main Roads.

If the motor dealer does not give you the documents required by law, your contract may not be legally binding.

In this case, you should make a complaint to the Office of Fair Trading.

Cooling-off period

The cooling-off period for used vehicles bought from a motor dealer is one full business day. However, the cooling-off period may be extended under certain circumstances, including if the dealer doesn’t let you know your rights under the cooling-off period. Get legal advice.

Cooling-off periods usually end on either:

  • the dealer’s next business day at 5pm
  • if the dealer closes before 5pm, the following business day at their usual closing time.

A contract of sale can be cancelled during the cooling-off period if you:

  • send a cancellation notice in writing to the motor dealer (an email is ok)
  • have not taken possession of the vehicle, except to do a test drive or inspection.

 The motor dealer:

  • can keep a deposit of up to $100 if you cancel the contract of sale during the cooling-off period
  • can’t sell a car offered as a trade-in until the cooling-off period has expired.

Cancelling contracts outside cooling-off periods

If you cancel a contract after the cooling-off period, you may have to pay damages (usually a percentage of the vehicle’s value, stated in the contract) unless you can prove the dealer did not meet one of the contract conditions. You should get legal advice. 

Statutory warranties

There are 2 types of statutory warranties. They are:

  • Class A warranty
  • Class B warranty.

Vehicles not covered by a warranty must be displayed or advertised as without warranty at the time of sale.

Class A warranties apply only to vehicles:

  • sold by a licensed motor dealer
  • with less than 160,000km
  • less than 10 years old.

This warranty covers you from the time you take possession of the vehicle until either:

  • you have driven 5,000km
  • 3 months after you bought the car

whichever happens first.

Class B warranties only apply to vehicles:

  • sold by a licensed motor dealer
  • with more than 160,000km
  • more than 10 years old.

This warranty covers you from the time you take possession of the vehicle until either:

  • you have driven 1,000km
  • 30 days after you bought the car

 whichever happens first.

Statutory warranties do not cover defects with:

  • airbags
  • installed radios, tape recorders or CD players
  • radio and other aerials
  • tyres
  • batteries
  • radiator hoses
  • spark plugs
  • distributor points
  • wiper rubbers
  • oil and oil filters
  • fuel and air filters
  • heater hoses
  • damaged paint work or upholstery at the time of sale
  • vehicle additions made by the buyer after possession
  • buyer misuse or negligence
  • damage from a car accident.

If your car has a defect, you must:

  • notify the dealer in writing before the end of the warranty period (email is ok)
  • deliver the vehicle to the dealer or a qualified repairer specified by the dealer.

The dealer must advise you in writing within 5 business days if the defect is covered by a statutory warranty.

If they do not respond, it is taken that the dealer accepts the defect is covered by a statutory warranty.

When the motor dealer accepts the defect is covered by a warranty:

  • the vehicle must be repaired within 14 days, unless the motor dealer has a reasonable excuse
  • the warranty period will be extended by one day for each day or part day the dealer has the vehicle.

A statutory warranty does not replace a mechanical inspection before a vehicle purchase.

You should get a mechanical inspection in addition to a statutory warranty—ask your own mechanic or the RACQ.

Resolving disputes with car dealers

Motor dealers must give you a complaints handling procedure under their Code of Conduct.

If you can't resolve a disagreement with a motor dealer about a code of conduct breach or a vehicle defect repair, you can make a complaint to the Office of Fair Trading.

You can also apply to the Queensland Civil and Administrative Tribunal (QCAT) to resolve the dispute when the dealer:

  • has refused to accept the defect is covered by the warranty
  • failed to repair the defect within the repair period
  • failed to repair the defect.

You can lodge a claim for compensation for up to $100,000 by applying for a motor vehicle dispute in QCAT.

Disputes with private sellers can only be resolved in a civil court, not QCAT. There is a risk the court may order you to pay all legal costs for the claim, so you should get legal advice before lodging a claim.

Buying a car privately

You don’t get the same legal protections when buying a car privately.

Learn more about buying a car privately on the Queensland Government website.

How to get legal advice

We may give legal advice about disputes with:

  • licensed motor dealers
  • credit providers and insurers. 

Other places to get legal advice:

Related information

Disclaimer: This content is for general purposes only and not legal advice. If you have a legal problem, please contact us or speak to a lawyer. View our full disclaimer.

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