Form 12 and the “no cooling-off period” rule
Most used cars sold by a Queensland dealer come with a one-business-day cooling-off period. Consignment sales usually don’t, but only if your ads and signs say so in the exact words the Regulation requires.
- Used cars sold by a dealer have a cooling-off period of one business day.
- Consignment sales are exempt, unless the consigning owner is a dealer or chattel auctioneer.
- Give the buyer Form 12 immediately before the contract is completed.
- Consigned cars need “no cooling-off period applies” in ads and a sign on the car.
What Form 12 is
Form 12 is the “Cooling-off period and statutory warranty (motor dealer or chattel auctioneer to buyer) form”. You must give it to the buyer immediately before the sale contract is completed. There’s no fee. If you don’t give it, the buyer can avoid the contract within 7 days and you face up to 200 penalty units.
What’s on Form 12
| Part | What it covers |
|---|---|
| 1 | The selling agent: dealer, auctioneer or salesperson, with licence number and expiry |
| 2 | The buyer |
| 3 | The vehicle: make, model, build date, VIN, engine number, registration, odometer, colour |
| 4 | Written-off declaration |
| 5 | Cooling-off: whether it applies, start and end times, and a tear-off cancellation notice |
| 6 | Statutory warranty: class A, class B or none (with the reason), and the warrantor |
| 7 | Any voluntary warranty, with the required Australian Consumer Law wording |
| 8 | Your declaration, including that you haven’t tried to talk the buyer out of their rights |
| 9 | The buyer’s acknowledgement and signature |
When cooling-off applies
A used car sold by a dealer has a cooling-off period of one business day. It starts when the contract becomes enforceable and ends at your close of business (5pm or later) on the next business day. Business days exclude Sundays and public holidays. If the buyer cancels, you can keep a non-refundable amount of up to $100 from the deposit.
A worked example: when cooling-off ends
| Contract becomes enforceable | Cooling-off ends |
|---|---|
| Monday 11am | Your close of business (5pm or later) on Tuesday |
| Friday 4pm | Your close of business on Saturday |
| Saturday 2pm | Your close of business on Monday (Sunday isn’t a business day) |
| Thursday, with Friday a public holiday | Your close of business on Saturday |
Business days exclude Sundays and public holidays. If the buyer cancels within the period, you can keep a non-refundable amount of up to $100 from the deposit.
When it doesn’t
- Auction sales.
- Consignment sales, unless the consigning owner is a dealer or chattel auctioneer.
- Sales to another dealer.
- Vehicles that aren’t “used motor vehicles” under the Act, such as commercial vehicles and caravans.
How a buyer cancels
- By written notice to you, or to someone apparently working for you at your place of business, before the period ends. The Office of Fair Trading says it can be handed over in person, emailed or faxed.
- Cancelling also ends any related finance or insurance contracts.
- You return any trade-in immediately and at no cost, and refund the deposit less the non-refundable amount (up to $100).
- A buyer can’t waive cooling-off. It ends early only if they take possession for something other than an inspection or test drive.
- Harassing or pressuring a buyer not to cancel is an offence.
The wording you must use
For a consigned car where no cooling-off applies, the Regulation sets the wording:
| Where | Requirement |
|---|---|
| Advertisements | Include “no cooling-off period applies” |
| Each vehicle | A sign reading “no cooling-off period—sale on consignment”, letters at least 5 cm high, near the price or description, or on the windscreen |
| Instead, if every car at the premises is exempt | One sign at the main entrance, letters at least 10 cm high |
A note on wording
The Office of Fair Trading’s consignment page writes the vehicle sign as “No cooling-off period—For sale by consignment”. The Regulation says “no cooling-off period—sale on consignment”. Use the Regulation’s wording. These advertising and sign rules don’t apply to vehicles owned by a dealer or chattel auctioneer.
The statutory warranty on Form 12
Form 12 also records whether a statutory warranty applies. The warrantor is the licensee who owns the car just before the buyer takes it.
| Class | Which cars | How long |
|---|---|---|
| A | Under 160,000 km and built no more than 10 years before the sale | 3 months or 5,000 km, whichever comes first |
| B | 160,000 km or more, or built more than 10 years before the sale | 1 month or 1,000 km |
There’s no statutory warranty on a consigned car unless its owner is a licensee, on sales to other licensees, or on commercial vehicles, caravans and motorcycles.
Excluded defects include accidental damage, misuse, accessories fitted after sale, tyres, batteries, most lights and globes, and (for class B) air-conditioning. When a buyer gives written notice of a defect, you reply within 5 business days or are taken to accept the claim, then repair within 14 days.