Buying a Used Car in Queensland: Dealer or Private Seller?

People often ask me whether they should buy from a dealer or a private seller. Private cars are often a little cheaper, and I understand why that is tempting. But in Queensland the two are not the same purchase. The law gives you very different protection depending on who sells you the car.

Here is what actually changes, based on the Queensland Government’s own guidance, and how to protect yourself whichever way you go.

The short answer

When you buy a used car from a licensed motor dealer in Queensland, you get a guarantee of clear title, a cooling-off period, access to a claim fund and, for most cars, a statutory warranty. When you buy privately, you get none of those. You are relying on your own checks.

That is the trade-off. A private sale can save money, but the risk moves to you.

What a licensed dealer must give you

A guarantee of clear title

A licensed dealer must guarantee that the car has clear title. In plain terms, the car is fully owned by the seller, can legally be sold, and is not subject to any finance or security interest. If there is money owing on it, that is the dealer’s problem to fix, not yours.

A statutory warranty on most cars

Queensland has two classes of statutory warranty, and it costs you nothing extra:

• Class A: the car has less than 160,000 km and was built no more than 10 years before the sale. The warranty lasts 3 months or 5,000 km, whichever comes first.
• Class B: the car has 160,000 km or more, or was built more than 10 years before the sale. The warranty lasts 1 month or 1,000 km, whichever comes first.

It covers most defects. It does not cover things like tyres, batteries, paintwork, upholstery, globes or damage you cause yourself, and class B also excludes air conditioning. Some vehicles have no statutory warranty at all, including motorcycles, caravans, commercial vehicles and cars sold on consignment for a private owner, and a dealer must tell you clearly when a car has none.

A cooling-off period

A licensed dealer must give you a 1 business day cooling-off period on a used car. If you change your mind, you tell the dealer in writing, and the most they can keep is $100. If the dealer does not give you the required cooling-off form, the period becomes 7 days. One catch: if you drive the car away during the cooling-off period, you lose that right.

Consumer guarantees and a claim fund

On top of the statutory warranty, a car from a business must be of acceptable quality, match its description and be fit for the purpose you told the seller about. These consumer guarantees apply for a reasonable time and cannot be signed away. If you lose money because of a licensed dealer’s actions, Queensland’s claim fund may also compensate you.

A safety certificate

A dealer must provide a current safety certificate when the car is sold. For a dealer it is valid for 3 months or 1,000 km from the date it was issued.

What you don’t get in a private sale

When you buy from a private seller, there is:

• no statutory warranty, so a fault that appears next week is yours;
• no cooling-off period, so once you have agreed, you have bought it;
• no clear-title guarantee, so if there is finance owing, you need to find it before you pay.

The private seller must still give you a current safety certificate when the registration is transferred. For a private seller it is valid for 2 months or 2,000 km, and it can only be used for one transfer. But a safety certificate only checks basic safety items such as tyres, brakes, steering, lights and rust. It is not a full mechanical inspection, and it tells you nothing about how long the engine or gearbox will last.

If you buy privately, do these checks

Private sales can work out well. Plenty of good cars are sold that way. Just do the work a dealer would normally do for you:

1. Run a PPSR check on the VIN. It costs $2 at ppsr.gov.au and shows registered finance, written-off and stolen records. Here is what a PPSR check tells you.
2. Check the registration with the free Queensland Government rego check.
3. Ask for the service history and make sure it makes sense for the age and kilometres.
4. Get an independent inspection from a mechanic or a motoring group such as RACQ.
5. Make sure you receive a current safety certificate from the seller.
6. Transfer the registration within 14 days. You and the seller both sign the transfer form, and as the buyer you pay the transfer fee and any vehicle registration duty.

Why a dealer’s price is often higher

A dealer’s price usually includes things you don’t see on a private listing: preparation, the statutory warranty, the clear-title guarantee and someone you can go back to if something goes wrong. Whether that is worth it depends on the car and on how comfortable you are doing the checks yourself.

My honest view: if you know cars well and the car is cheap, a private sale can make sense. For a car worth tens of thousands of dollars, the protection is worth a lot.

How we do it at Safeway Auto

Safeway Auto is a licensed Queensland motor dealer (licence 4738159) at 4 Ferry Road, West End, Brisbane. Every car we sell comes with a guarantee of clear title and the protections described above.

We are also fussy about what we stock. Every car needs a clear PPSR and a full service history, and it has to pass one test: would I choose it for myself? You can read more about how we select used cars. And if something does go wrong after the sale, we deal with it. That is the whole point of buying from us.

Quick answers

Do private sellers have to give a warranty in Queensland?

No. The statutory warranty only applies to cars bought from licensed motor dealers and chattel auctioneers.

How long is the cooling-off period when buying from a dealer?

One business day. The dealer can keep up to $100 if you cancel. It becomes 7 days if the dealer doesn’t give you the required form, and you lose it if you drive the car away.

Does a private seller need a safety certificate?

Yes. The seller must give the buyer a current safety certificate when the registration is transferred, unless the car is exempt. You no longer need one just to advertise a registered car for sale.

Who pays for the registration transfer?

The buyer pays the transfer fee and any vehicle registration duty. The seller pays nothing to transfer the registration out of their name.

Looking for a used car in Brisbane?

You can browse our current cars, book a test drive, or get in touch if you have a question. If you can’t see the right car, our vehicle sourcing service can find one.