18C

Legal title to vehicle remains with dealer during cooling‑off period

Current

Subject to an agreement in the approved form between a dealer and a purchaser under a contract for the sale of a second‑hand vehicle to which section 18B applies, the following provisions apply in respect of the contract:

(a)

legal title to the vehicle does not pass from the dealer to the purchaser until the expiration of the cooling‑off period in relation to the contract;

(b)

the dealer is entitled to retain possession of the vehicle during the cooling‑off period;

(c)

the dealer must allow the purchaser, or a person nominated by the purchaser, reasonable access to the vehicle during the cooling‑off period for the purpose of test driving or inspecting the vehicle;

(d)

neither the dealer nor the purchaser, nor a person acting on behalf of the dealer or the purchaser, may drive the vehicle more than 100 kilometres during the cooling‑off period;

(e)

the dealer must ensure during the cooling‑off period that the vehicle—

(i)

is roadworthy; and

(ii)

is insured against loss or damage; and

(iii)

is registered, or bears trade plates, and is insured in accordance with the requirements of the Motor Vehicles Act 1959.

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