Buying guide

Buying a Used Car From a Dealer: Warranty, Cooling-Off and Red Flags

Last updated 19 October 2026

A licensed dealer must give you the Australian Consumer Law guarantees on any car, and on most cars under 10 years old a statutory warranty, usually 3 months or 5,000 km. A cooling-off period applies in Victoria, Queensland and SA, in NSW only when the dealer arranges your finance, and not at all in WA, and it usually ends when you take the car. Read the warranty notice on the car, run your own PPSR check and inspect it as you would a private sale.

The Statutory Warranty in Each State

A statutory warranty is the dealer's legal duty to fix defects that appear soon after the sale, at their cost. Which cars get one, and for how long, depends on the state, the car's age and kilometres, and in WA and SA its price. The dealer has to tell you whether a car is covered, usually on a notice displayed on the car.

State	Which used cars	How long
NSW	Under 10 years old and under 160,000 km (NSW Government).	3 months or 5,000 km, whichever comes first.
Victoria	Under 10 years old (from the build plate) and under 160,000 km (Consumer Affairs Victoria).	3 months or 5,000 km, whichever comes first.
Queensland	Class A: under 160,000 km and built no more than 10 years before the sale. Class B: the rest (Queensland Government).	Class A: 3 months or 5,000 km. Class B: 1 month or 1,000 km.
WA	Priced at $4,000 or more: up to 10 years old and 150,000 km, or up to 12 years and 180,000 km. Not single-cab utes or commercial vehicles (Consumer Protection WA).	3 months or 5,000 km; 1 month or 1,500 km for the older band.
SA	By price: over $6,000, or $3,001 to $6,000. A car of $3,000 or less only has to be roadworthy at sale (CBS).	Over $6,000: 3 months or 5,000 km. $3,001–6,000: 2 months or 3,000 km.

What the Warranty Doesn't Cover

Every state excludes damage you cause after the sale, through an accident or misuse. Some also exclude wear items (Queensland lists tyres, batteries and wiper rubbers among others) and cosmetic paint or upholstery damage you could have seen when you bought it. A dealer can also list known defects on the warranty notice before you buy, and a defect listed there isn't covered, so read it, and don't accept a list that includes anything unsafe, such as the brakes or tyres.

Consumer Guarantees Cover Every Dealer Sale

Separate from the statutory warranty, and with no fixed end date, the Australian Consumer Law guarantees apply to every used car a dealer sells, whatever its age or price. The car must be of acceptable quality for its age, kilometres and price, match its description, and be free of anyone else's claim on it. If a fault appears, the dealer must deal with it; they can't send you to the manufacturer instead (ACCC).

An extended warranty, which you usually pay extra for, doesn't replace any of this. Read what it excludes and who you claim from before you pay for one.

Cooling-Off Periods in Each State

A cooling-off period lets you cancel a signed contract for a small fee. Where there is one, taking delivery of the car usually ends it, so don't drive away until you're sure.

State	Cooling-off on a used car	Cost to cancel
NSW	Only when the dealer arranges or refers your finance, until 5pm the next business day. It can be waived (NSW Government).	2% of the price, or $250 if that's less.
Victoria	3 clear business days after you sign, from a licensed trader. Not for cars bought in a company's name or commercial vehicles (Consumer Affairs Victoria).	$100 or 1% of the price, whichever is more.
Queensland	1 business day, to 5pm on the dealer's next trading day, or 7 days if the dealer didn't give you the cooling-off form. Driving away ends it; a test drive or a mechanic's inspection doesn't (Queensland Government).	Up to $100 of the deposit.
WA	None. Cancelling a signed contract can cost the dealer's genuine losses (Consumer Protection WA).	Up to 5% of the price.
SA	2 clear business days, Saturdays included, on a second-hand car from a dealer. Taking the car ends it (SA Government).	$100 or 2% of the price, whichever is less.

Red Flags at a Used Car Dealership

Red flag	Why it matters
Pressure to sign or take the car today	Taking delivery usually ends the cooling-off period, and a deadline stops you checking the car.
Asked to waive the cooling-off period	In NSW and SA it can be waived in writing. Don't, unless you've finished every check.
No warranty notice on a car that should have one	Ask in writing which warranty applies. A dealer can't sell a covered car "as is" to avoid it.
Won't allow an independent inspection	A good car survives a mechanic's look. Refusal is a reason to walk away.
Won't give you the VIN	You need it for the PPSR and recall checks before you commit.
Extras in the contract you didn't ask for	Paint protection, extended warranties and insurance add up. Ask for each to be itemised, and remove any you don't want.
Finance pushed before the price is settled	Agree the drive-away price first, then compare the dealer's finance with your own bank's.

The Documents to Ask the Dealer For

Ask for these before you sign, and see what documents to check for what each should show.

Document	What to check
The contract	The drive-away price, the VIN and every extra itemised, with nothing blank when you sign.
Warranty notice	Whether the statutory warranty applies, for how long, and any defects listed as excluded.
Cooling-off notice	Where your state has one, the form saying how long you have and what cancelling costs.
PPSR certificate	The dealer must give you clear title, but run your own search on ppsr.gov.au anyway. See what a PPSR check covers.
Service history	Stamps or receipts at regular intervals, with kilometres that climb steadily.
Roadworthy or safety certificate	In Victoria and Queensland, current and for this car's VIN.

Inspect a Dealer's Car Anyway

The warranty covers defects that appear after the sale, not ones you could have found before it, and it won't refund a car that was the wrong buy. Inspect it in daylight with the engine cold, work through a used car inspection checklist, take a proper test drive, and negotiate on what you find. Compare it with buying from a private seller, where none of these protections apply.

Shufti, the used car inspection app, builds the inspection for the car from its listing, with the PPSR and recall checks included, whether it's on a dealer's yard or in a private driveway.

Questions Answered

Is there a cooling-off period when buying a used car from a dealer?

In some states. Victoria gives 3 business days, SA 2, and Queensland 1. NSW gives 1 business day only when the dealer arranges your finance, and WA has none. Taking delivery of the car usually ends it.

Do used cars from a dealer come with a warranty?

Most cars under 10 years old do: usually 3 months or 5,000 km, whichever comes first. The rules depend on the state, the car's age and kilometres, and in WA and SA its price. Older cars may get a shorter warranty or none, but the consumer guarantees still apply.

What's the difference between the statutory warranty and consumer guarantees?

The statutory warranty is a fixed period, such as 3 months or 5,000 km, set by state law for eligible cars. The consumer guarantees under the Australian Consumer Law apply to every car a dealer sells, last for a reasonable time given its age and price, and require it to be of acceptable quality (ACCC).

Can a dealer sell a used car "as is"?

Not to get out of the statutory warranty on a car that qualifies, or the consumer guarantees. A dealer can list known defects before the sale, and those aren't covered, so read the warranty notice before you sign.

Should I buy an extended warranty from the dealer?

Only after reading what it excludes and who pays claims. It doesn't replace the statutory warranty or the consumer guarantees, which you get anyway, and it's often a large part of the extras added to the price.

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