Private sellers often ask less than dealers for a similar car. The difference is in what the law gives you. Consumer Affairs Victoria notes that buying from a licensed motor car trader gives you greater protection, while in a private sale more of the checking and the risk falls on you. Here's what changes.
Side by side
| Licensed dealer | Private seller | |
|---|---|---|
| Cooling-off period | 3 clear business days after signing (some exclusions; lost if you take delivery) | None |
| Statutory warranty | 3 months or 5,000 km on eligible cars (built no more than 10 years ago and under 160,000 km) | None |
| Clear title | Dealer must clear any finance or security interest before selling | Your responsibility to check with a PPSR search |
| Consumer guarantees | Australian Consumer Law guarantees apply, such as acceptable quality | Most don't apply (title guarantees still do) |
| Guarantee Fund | You can claim up to $40,000 if a licensed dealer fails certain obligations | Not covered |
| Roadworthy certificate | Dealer gives you a current RWC for a registered car | Seller gives you an RWC less than 30 days old for a registered car |
| Transfer and duty | Dealer lodges the transfer; you pay the duty to the dealer | You lodge and pay within 14 days |
| Price information | Used car notice shows a single price including all fees and duties | Duty and transfer fee are extra |
What you give up in a private sale
No cooling-off
Consumer Affairs Victoria is clear: there is no cooling-off period when you buy from a private seller. Once you've agreed and paid, you can't change your mind. With a licensed dealer you have three clear business days after signing, as long as you haven't taken delivery of the car.
No statutory warranty
A car bought privately isn't covered by a statutory warranty. From a licensed dealer, eligible cars come with 3 months or 5,000 km of cover, and the dealer must arrange and pay for repairs of defects in that time.
More checking falls on you
In a private sale it's your responsibility to make sure the car isn't stolen, has no money owing on it and isn't on the written-off register. A $2 PPSR check covers money owing and written-off or stolen records. A licensed dealer must clear any finance before selling and must tell you if the car has been on a written-off register.
Fewer consumer guarantees
The ACCC says most consumer guarantees don't apply to private sales. You're still guaranteed clear title and undisturbed possession, but not acceptable quality. When you buy from a dealer, the car must be of acceptable quality for its age, price and condition, and those rights continue after the statutory warranty ends.
You do the paperwork
After a private purchase, you complete the transfer and pay the duty with VicRoads within 14 days, and penalties apply if you're late. A dealer handles the transfer for you.
When a private sale can make sense
- You know cars well, or you'll pay for an independent inspection.
- The price difference is large enough to cover the risk of repairs without a warranty.
- You're comfortable doing the PPSR check, transfer and duty yourself.
When a dealer makes more sense
- You want the protection of a statutory warranty and a cooling-off period.
- You want a clear, all-inclusive price and someone else to handle the transfer.
- You'd rather have a business to go back to if something isn't right.
Whichever you choose
Inspect the car, test drive it from cold and read every document before you pay. Our used car buying checklist walks through each step, and our stamp duty guide shows how to budget for duty and fees.
Driveon Australia is a licensed motor car trader (LMCT MCT-0012380) in Hoppers Crossing. See our used cars or get in touch.
Common questions
Is there a cooling-off period when buying a car privately in Victoria?
No. Consumer Affairs Victoria says there is no cooling-off period when you buy from a private seller. The 3-business-day cooling-off right applies to sales by licensed dealers.
Do private car sales come with a warranty in Victoria?
No. A car bought from a private seller is not covered by a statutory warranty, and most Australian Consumer Law guarantees don't apply to private sales.
Sources (checked October 2026). This guide is general information, not legal advice.