Car Dealer Contract Review: Cooling-Off by State, Extended Warranties, Deposits and Add-Ons (Australia, 2026)

Prepared by Claim Done from the Australian Consumer Law, the Competition and Consumer Regulations 2010, the ASIC Act 2001, the state and territory motor dealer laws, and the ACCC and state government pages listed under Sources. Last checked 8 November 2026.

Buying a car from a dealer at a glance

Car dealer contract: what to check before you sign

1. The single drive-away price, with every add-on and dealer charge itemised and adding up. Watch for “dealer delivery”, “admin” or “pre-delivery” charges that were not in the advertised price.
2. The deposit: how much, and what happens to it if you cancel or your finance is refused.
3. Cooling-off: whether you have any, how long, what it costs, and anything that ends it early.
4. Any “sold as is” or “no warranty” clause.
5. Extended warranty and add-ons: the price of each, what it adds, and its conditions.
6. Add-on insurance offered on the day, such as GAP, loan protection or tyre and rim cover.
7. The trade-in: the value written in, and the payout of any loan on it.
8. Finance: if the dealer arranges it, the full cost of the loan as well as the car.

Is a signed order with a deposit binding?

Yes. The NSW Government says: “If you pay a deposit and sign a vehicle purchase order form, you are entering a legal contract to buy a vehicle.” If you then back out, “the seller may be entitled to keep the deposit and ask you to pay a cancellation fee.” It also advises: “Always get a receipt for this money and written terms of the deposit.”

If you are relying on finance, ask for a written “subject to finance approval” condition with a full refund of the deposit. In Western Australia, Consumer Protection WA says a dealer’s damages when a buyer cancels “can’t be more than five per cent of the total purchase price of the car”, and lists trying to obtain a loan as a situation where cancelling may be reasonable.

Car cooling-off period by state

The ACCC says cooling-off periods “vary and are not available in every state and territory.” Where they exist, they mostly cost something to use.

Two traps: in Victoria, Queensland and SA, taking the car ends your right to cancel, and in NSW a cash or bank-loan purchase has no cooling-off at all. Check the paperwork for any waiver or “loss of right” form before you sign it.

Is an extended warranty worth it in Australia?

Start with what you already have. When you buy from a dealer, the Australian Consumer Law gives you guarantees that the car is of acceptable quality (fit for its common purposes, acceptable in appearance and finish, free from defects, safe and durable), fit for any purpose you made known, matches its description, and that repairs and spare parts will be available (ACL ss 54-58). These cannot be signed away (s 64).

The regulators are blunt about what an extended warranty adds:

• “An extended warranty may or may not give a consumer any extra rights” (ACCC).
• “Voluntary warranties cannot replace, change or take away the automatic rights consumers have.” (ACCC)
• “Having an extended warranty does not change any rights that you have” under the dealer laws or the Australian Consumer Law (NSW Government).

The ACCC also says businesses must not “pressure consumers to buy an extended warranty” or “mislead consumers into paying for rights in an extended warranty”. Telling you that you need to pay for a right you already have can breach the ban on misleading representations about rights and remedies (ACL s 29(1)(m)-(n)).

What to check if you are considering one

• the price, and what it covers beyond the consumer guarantees and any statutory warranty, especially in the early period when both already apply;
• servicing conditions: the NSW Government notes some require servicing only by the dealer;
• exclusions and claim caps, and who the warrantor actually is;
• whether the document is compliant: a warranty against defects must give the warrantor’s contact details, the claim procedure and period, who pays claim costs, and the mandatory statement “Our goods come with guarantees that cannot be excluded under the Australian Consumer Law.” (ACL s 102; CCR reg 90).

Paint protection, window tint and similar extras have no special statute. In our reading they are goods or services supplied with the car, so the same guarantees, warranty-document rules and misleading-conduct rules apply to them.

Statutory used-car warranty by state

On top of the consumer guarantees, most states make a dealer repair defects in a newer used car at its own cost for a set period.

For new cars, NSW adds a dealer guarantee of “12 months or 20,000 km (whichever comes first)” for a new vehicle under 15,000 km at purchase. Tasmania’s dealer warranty rules are not summarised on this page.

Add-on insurance: the 4-day rule

GAP insurance, loan protection, tyre and rim insurance and similar products sold with the car or the loan generally cannot be sold on the spot. The deferral period starts once you have committed to the car and been given ASIC’s prescribed information, and ends “at the end of 4 days after the day on which the period begins” (ASIC Act s 12DP(1)). Selling before then is prohibited (s 12DQ).

If it was sold in breach, you can return it without penalty within 1 month after any 14-day insurance cooling-off ends, or otherwise within 1 month and 14 days after the sale, and the refund “must be the entire amount paid for the product”, less any claim paid (s 12DT). Comprehensive car insurance is exempt (s 12DW). Insurance sold properly generally still has a 14-day statutory cooling-off, lost once you make a claim.

“Sold as is” and your consumer guarantees

A clause saying “sold as is”, “no warranty” or “manufacturer’s warranty only” cannot take away the consumer guarantees on a dealer sale: a term is void “to the extent that the term purports to exclude, restrict or modify” them (ACL s 64(1)). The option to limit liability to repair or replacement does not apply to goods ordinarily acquired for personal use, such as an ordinary car (s 64A).

Two limits are real. Defects the dealer specifically pointed out before the sale, or that an examination you made ought to have revealed, are not covered (s 54(4), (7)). And the goods guarantees do not apply to a sale by auction; the ACCC says most consumer guarantees and state laws “don’t apply” to second-hand cars bought privately or at auction.

If something goes wrong, a minor failure lets the dealer choose to repair, replace or refund. A major failure lets you reject the car and choose a refund or replacement, or keep it and claim the drop in value (ss 259-263).

What our review checks

Upload the dealer contract and any add-on, warranty or finance paperwork and get a plain-English report written for the buyer, usually about 5 minutes after you pay. It:

• checks the drive-away price adds up, and lists every add-on and dealer charge with its price
• explains what an extended warranty adds compared with the consumer guarantees and your state’s statutory warranty, and checks its conditions
• works out your state’s cooling-off, its cost and what ends it, and flags any waiver form
• quotes the deposit clause and what happens if you cancel or finance is refused
• flags “sold as is” or “no warranty” wording
• checks the timing of any add-on insurance against the 4-day rule
• gives you the questions to ask the dealer before you sign

The report explains what your contract says and what the law provides. It is not legal advice and does not value the car. You decide what to sign.

Get your car dealer contract reviewed – $29

Questions people ask

What should I check in a car dealer contract?

The single drive-away price and every add-on, the deposit terms, whether you have a cooling-off period, any “sold as is” clause, the extended warranty and its conditions, the timing of any add-on insurance, and the trade-in value. If the dealer arranges finance, check the loan too.

Is an extended warranty worth it in Australia?

Often it adds less than it seems. The ACCC says an extended warranty “may or may not give a consumer any extra rights”, and the consumer guarantees apply whether or not you buy one. Compare its price and conditions with what the guarantees and any statutory warranty already give you.

Is there a cooling-off period when buying a car?

It depends on the state. Victoria gives 3 clear days and the ACT 3 clear business days; SA gives 2 clear business days and Queensland a cooling-off for used cars from a dealer; NSW only when the dealer arranges finance. WA and the NT have none.

How much does it cost to cancel a car contract in cooling-off?

VIC: the greater of $100 or 1%, or $400 or 2% for a new car sold on the dealer’s premises. ACT: the greater of $100 or 1%. QLD: $100. SA: the lesser of 2% or $100. NSW: the lesser of $250 or 2%.

Can I get my car deposit back?

Not automatically. A signed order with a deposit is a binding contract, and the dealer may be entitled to keep the deposit if you back out (NSW Government). Use cooling-off if your state has it, and get a written finance condition before you pay.

Can a dealer sell a car “as is” with no warranty?

Not to take away your consumer guarantees. A term is void to the extent it excludes, restricts or modifies them (ACL s 64). Defects specifically pointed out to you before the sale are not covered, and auctions are excluded.

Do I have to buy add-on insurance from the dealer?

No, and generally it cannot be sold on the spot. Add-on insurance has a 4-day pause after you commit and receive ASIC’s information, with a full refund within set time limits if it was sold early (ASIC Act ss 12DP-12DT). Comprehensive car insurance is exempt.

Does taking delivery end my cooling-off?

Yes, in Victoria, Queensland and SA. In the ACT, signing the “loss of right to terminate” form just before accepting delivery ends it. If you might change your mind, do not take the car until the period has ended.

What is the statutory warranty on a used car?

In most states, a dealer must repair defects at its cost for about 3 months or 5,000 km on newer, lower-kilometre used cars, with shorter cover for older cars in some states. It sits on top of the consumer guarantees.

Can a dealer add fees that were not in the advertised price?

A dealer that states part of a price must also state the single total price as prominently (ACL s 48), and false or misleading statements about price are banned (s 29(1)(i)). Ask for every charge to be itemised.

Is the car purchase contract review legal advice?

No. It is a plain-English report that explains your contract, the add-ons and your rights, and what to ask the dealer. It does not inspect or value the car. Claim Done is not a law firm.

Related guides

• Car finance contract review: balloon payments, add-on insurance and guarantors
• Car dealer sold you an extended warranty or add-on you didn’t need?
• Dealer says the car was “sold as is”?
• Bought a used car from a dealer with problems?

Claim Done is not a law firm and does not give legal advice; this page is general information about Australian law as at 8 November 2026. Cooling-off and warranty rules depend on the state where you signed and the car’s age and kilometres.

Sources (checked 8 November 2026)

• Competition and Consumer Act 2010 (Cth), Schedule 2 (Australian Consumer Law), Compilation No. 167 (ss 3, 29, 48, 54-64A, 102, 259-265)
• Competition and Consumer Regulations 2010, Compilation No. 100 (regs 77A, 90)
• ASIC Act 2001 (Cth), Compilation No. 109 (ss 12DO-12DW)
• Motor Car Traders Act 1986 (Vic) (ss 43, 54)
• Motor Dealers and Chattel Auctioneers Act 2014 (Qld) and Regulation 2014
• Motor Vehicle Dealers Act 1973 (WA) (ss 34A, 34C)
• Second-hand Vehicle Dealers Act 1995 (SA) (ss 18B, 23)
• Sale of Motor Vehicles Act 1977 (ACT) (s 25B, Sch 1)
• Consumer Affairs and Fair Trading Act 1990 (NT) (s 168)
• ACCC: new and second-hand cars
• ACCC: warranties
• NSW Government: vehicle finance and contracts
• NSW Government: dealer guarantees and warranties
• Consumer Protection WA: cancelling a contract to buy a car