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.
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 $100 of 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.
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.
Questions dealers ask
Does cooling-off apply to consignment sales in QLD?
Generally no, unless the person consigning the car is a dealer or chattel auctioneer. You still need the “no cooling-off period applies” wording in ads and on the car.
How much of the deposit can I keep if the buyer cools off?
A non-refundable $100.
Sources
Rules and fees change. Check the official source before you rely on anything here; this guide is general information, not legal advice.