It happens more than anyone admits. The test drive was great, the finance was quick, the salesperson was genuinely nice, and by the time you're home the numbers look different. Whether you can undo it comes down to one thing: the state you signed in.
A cooling-off period lets you cancel a signed contract within a set time. You usually lose a small, capped amount, and you usually lose the right altogether once you take delivery. Four states and territories give buyers no statutory cooling-off at all.
State by state
| State | Cooling-off | Cost to cancel | Watch out for |
|---|---|---|---|
| QLD | 1 business day, ends 5pm the dealer's next trading day. Used cars only | Non-refundable deposit fixed at $100 by regulation | Lost if you drive the car away (a test drive or mechanic check is fine) |
| NSW | 1 business day, only if the dealer arranges or refers your finance | The lesser of $250 or 2% of the price | Can be waived in writing |
| VIC | 3 clear business days from licensed traders | The greater of $100 or 1% of the price | Lost on delivery. Not for companies or commercial vehicles |
| SA | 2 clear business days (Saturdays count). Used cars and demos | The lesser of 2% or $100 | Can be waived on a witnessed form. Deposits capped at 10% |
| ACT | 3 clear business days on any motor vehicle | The greater of $100 or 1% of the price | Lost if you sign the loss-of-right form before delivery |
| WA | None | Dealer can claim a genuine pre-estimate of loss up to 5% | The contract binds once both sides sign |
| TAS | None | Only by agreement or court order | Magistrates Court can cancel in limited cases |
| NT | None | Dealer can't keep more than 10% of the price | Read the contract before paying a deposit |
Summary of each regulator's published rules as at 27 September 2026.
In four states and territories the cooling-off period is the time you spend reading the contract before you sign it.
The delivery trap
Across the states that offer it, the fastest way to lose cooling-off is to take the car home. Queensland, Victoria and the ACT all end the right on delivery in some form. If you're unsure, don't collect the car the same day you sign. Sleep on it with the contract, not the keys.
Finance changes the picture in NSW
NSW's one business day applies only when the dealer arranges your loan or refers you to a lender. Pay cash or bring your own pre-approved finance and there's no statutory cooling-off. That's not a reason to take dealer finance, it's a reason to be sure before you sign.
When there's no cooling-off
In WA, Tasmania and the NT you're relying on the contract itself. Ask for a copy to take away before you pay a deposit, check what the deposit is for, and remember your Australian Consumer Law rights still apply if the car turns out to have a major fault.
Quick answers
Is there a cooling-off period on new cars?
It depends on the state. Queensland's applies only to used cars, and SA's excludes new cars, while the ACT's covers any motor vehicle from a dealer. Check the table above.
Does cooling-off apply to private sales or auctions?
Generally no. The state schemes cover sales by licensed dealers, and auctions are commonly excluded.
How much will cancelling cost me?
It's capped by law in the states that offer cooling-off, from $100 in Queensland up to the lesser of $250 or 2% in NSW.
General information only. This story does not consider your objectives, finances or needs. Rules change: check the linked official sources and confirm details with the dealer before you sign.
Sources
- Queensland Government: cooling-off period for buying a used car: https://www.qld.gov.au/law/your-rights/consumer-rights-complaints-and-scams/buying-products-and-services/buying-products/buying-a-car/buying-a-used-car/cooling-off-period-for-buying-a-used-car
- NSW Government: buying a used vehicle: https://www.nsw.gov.au/driving-boating-and-transport/buying-and-selling-vehicles/buying-a-used-vehicle
- Consumer Affairs Victoria: cooling-off period: https://www.consumer.vic.gov.au/consumers-and-businesses/cars/buying-a-used-car/cooling-off-period
- SA Government: cooling-off rights: https://www.sa.gov.au/topics/driving-and-transport/registration/vehicle-registration/transfers/cooling-off-rights
- Consumer Protection WA: cancelling a contract to buy a car: https://www.consumerprotection.wa.gov.au/cancelling-contract-buy-car
- CBOS Tasmania: buying a car: https://cbos.tas.gov.au/topics/products-services/buying/buying-a-car/new-car
- ACT Legislation Register: Sale of Motor Vehicles Act 1977: https://www.legislation.act.gov.au/DownloadFile/a/1977-29/current/PDF/1977-29.PDF
- NT Government: contracts and deposits: https://nt.gov.au/law/rights/buying-a-new-or-used-vehicle/contracts-and-deposits
