Sold your car privately and the buyer wants a refund?

Usually not. Most consumer guarantees don’t apply to a private car sale, so you generally don’t have to refund a buyer who has changed their mind, or whose car broke down after they drove it away.

The exceptions are where sellers get caught: hidden finance, a serious defect you knew about and kept quiet, something you said that wasn’t true, or a certificate your state required you to hand over. Below is each one, what your state’s guidance says, and how to reply without making things worse. This is general information, not legal advice, so check your situation with your state’s consumer agency or a lawyer.

Do you have to give a private buyer their money back?

Not just because they ask. The ACCC says most consumer guarantees, and most state and territory laws on car sales, don’t apply to second-hand cars bought privately or at auction. Those protections are written for dealers.

The state agencies say the same thing in their own words:

• Consumer Affairs Victoria tells buyers that a car bought from a private seller has no cooling-off period and isn’t covered by a statutory warranty.
• WA Consumer Protection says the Australian Consumer Law doesn’t apply to cars bought and sold privately.
• The NSW Government says NSW Fair Trading is unable to help resolve issues with private sales.

So a buyer who simply regrets the purchase has no automatic right to hand the car back. The main exception is anything you agreed to. If you wrote “refundable within seven days” in a message or on the receipt, that counts.

What does a private seller still owe the buyer?

Fewer protections isn’t the same as none. The ACCC says a private seller must still provide clear title, undisturbed possession and no undisclosed securities. In plain terms:

• Clear title. The car is yours to sell. If it’s in joint names, or belongs to a company or an estate, the right people have to agree to the sale.
• Undisturbed possession. Nobody else can turn up later with a better claim to the car.
• No undisclosed securities. There’s no hidden loan secured against it. WA Consumer Protection says you must tell the buyer about any finance owing before the sale.

This is the claim most likely to land back on you. If a loan wasn’t paid out, the lender’s security interest can stay attached to the car after the sale, and the buyer’s first call will be to you. If that’s your situation, ring your lender today for a payout figure and clear the debt.

Are you responsible if the car broke down after the sale?

Generally not. A private sale doesn’t come with a statutory warranty, so a fault that shows up after the car changes hands is usually the buyer’s risk, even a week later. Used cars wear, and nobody can promise one won’t fail.

What changes the answer is what you knew. WA Consumer Protection warns private sellers that they may be held liable if they’re aware of a serious defect and don’t tell the buyer. The official guidance we’ve read in other states doesn’t put it in the same words, but treat WA’s line as the safe standard wherever you live.

Ask yourself three questions before you reply:

1. Did I know about this fault, or about signs of it, before the sale?
2. Did I say anything in the ad, in messages or in person that suggested otherwise?
3. Did I do anything that hid it, such as clearing a warning light just before a test drive?

If the honest answer to all three is no, you’re in a much stronger position. A mechanic saying the fault “must have been there a while” doesn’t show you knew about it.

Where do private sellers usually get caught out?

In what they said. A buyer who can point to a statement that wasn’t true is in a far stronger position than one with regrets. These claims cause the most trouble:

• “No accidents.” If the car has had a repair you know about, say so. Our guide to accident history and disclosure covers what to say and how it affects value.
• “Full service history.” Only if the logbook backs it up.
• “Never had a problem.” Hard to defend if your own receipts show a repeat repair.
• “Nothing owing.” Only once the loan has actually been paid out.
• Warning lights. Clearing a fault code before an inspection while the fault is still there turns a breakdown into a dispute.
• Write-off status. It shows on a PPSR search, so a buyer will find out.

The fix for all of these is the same: put what you disclosed in writing. Our guide to what to include on a bill of sale shows how to list known faults and have the buyer sign underneath.

Victoria: what if you sold without a roadworthy?

Victoria puts the roadworthy on the seller. Consumer Affairs Victoria says you must provide a Certificate of Roadworthiness less than 30 days old if you’re selling a registered vehicle. That’s the seller’s job, not the buyer’s.

If you skipped it and the buyer now wants to hand the car back, deal with the certificate first. Without one, the buyer may not be able to finish the transfer, which may be what’s really behind the complaint.

1. Tell the buyer in writing that you’ll arrange the roadworthy.
2. Book a licensed vehicle tester. If the car fails, the Department of Transport and Planning says you have 14 days to fix it and have it re-checked without paying for a new test.
3. Keep copies of the certificate, the transfer form and your messages.
4. Get advice before taking the car back. If the buyer still wants to undo the sale, talk to Consumer Affairs Victoria or a lawyer first.

Some buyers argue the reverse: the car passed a roadworthy and still broke down. The Department of Transport and Planning says an RWC checks safety, not mechanical reliability, so a later fault doesn’t mean the certificate was wrong. Our guide to selling a car in Victoria covers the full RWC and transfer process.

WA: what must you tell a buyer?

WA Consumer Protection spells out a private seller’s position plainly. You aren’t legally required to do a roadworthiness check. In return, you must tell the buyer about any finance owing before the sale, and you may be held liable for a serious defect you knew about and didn’t disclose.

It also says the Australian Consumer Law doesn’t apply to private sales, so Consumer Protection may have limited options to help if something goes wrong. With no free referee for either of you, a dispute you can’t settle between you can become a civil claim. Written disclosure is your best defence.

What does each state put on a private seller?

Certificates are the other concrete hook a buyer has. Here’s what each state’s official guidance says about a private sale of a registered car, and which agency to ask.

Queensland’s rule has a sting for sellers. Transport and Main Roads says the new owner can’t transfer the rego without the inspection certificate, and you remain liable for tolls and fines while the car is registered in your name.

How should you reply to the buyer?

Calmly, in writing, and only after you’ve checked your own records. Start by matching what the buyer is saying to where you’re likely to stand.

Then work through these steps:

1. Reply, but in writing. Silence makes a buyer angrier, and phone calls leave no record.
2. Ask for specifics: what’s wrong, when it started, and a mechanic’s written report.
3. Check your own record. Reread your ad, messages and bill of sale before you say what you disclosed.
4. Don’t agree to anything on the spot, including taking the car back or paying for a repair.
5. Get advice if it escalates. Your state’s consumer agency can give general information, and Legal Aid or a community legal centre can advise on your position for free.

If money does go back, send it only to the account it came from, after checking your own banking app. A request to pay somewhere else is a red flag, as our guide to the overpayment scam explains.

Here’s a reply you can adapt. Only send the parts that are true:

Hi [name], thanks for letting me know, and I’m sorry the car has given you trouble. When we agreed the sale on [date], I told you about [the faults you disclosed], and you [inspected the car / had it checked] before paying. I wasn’t aware of [the new problem] when you collected it. Could you send me the mechanic’s written report? I’ll reply by [date].

If you did know about the fault, don’t send that message: get advice first. Paying part of a repair bill sometimes costs less than months of back and forth. If you settle, write down what you agreed, say it finalises the matter, and both sign it.

How do you avoid a dispute next time?

Before your next private sale:

• Run a PPSR search on your own car, so you see what a buyer will see.
• Pay out any finance before the sale, or tell the buyer exactly how it will be cleared.
• Supply the certificate your state needs: an RWC in Victoria, a safety certificate in Queensland.
• List known faults in the ad and on the bill of sale, and have the buyer sign.
• Let the buyer’s own mechanic check the car before they pay.
• Keep the ad, your messages, the receipt and the transfer papers.

Disputes are a cost of selling privately that few people plan for. Our guide to the true cost of selling a car privately counts the others. When you sell to a licensed dealer, it’s the dealer who takes on the legal duties to the next buyer, not you.

Private buyer or dealer next time?

A private sale can still suit you if you’re comfortable with the paperwork, the disclosure and the chance of a buyer coming back. If you’d rather not carry that, a licensed dealer takes the private buyer out of the picture.

That’s how it works with us. Sell Your Car Australia is run by Autohaus Australia Pty Ltd, NSW licensed motor dealer MD 077404, and our valuer has priced cars since 1992. We buy cars, utes, SUVs and 4WDs 2021 or newer with 100,000 km or less. If yours is older or has done more kilometres, send it through anyway and we’ll tell you straight away if we can help.

You get a genuine offer by phone from a licensed dealer, not an online estimate, and a deposit often the same day. We inspect the car after you accept, at a time and place that suits you, and before the balance is paid. The balance goes into your bank account, and we collect the car only after you confirm the funds have cleared. If there’s finance, we deal with your lender directly. See how cash for cars works with us, or call 1800 73 55 73 for a free valuation with no obligation.