Updated April 2026 15 min read

Buying Your First Car in Australia: A Complete Guide for New Arrivals

Buying a car is one of the biggest purchases you'll make when settling in Australia — and one of the most confusing if you're not familiar with the local system. From understanding rego and CTP insurance to knowing where to find reliable used cars and how to avoid scams, this guide walks you through every step of buying your first car in Australia.

New vs Used: Which Is Right for You?

For most new arrivals, a used car is the practical choice. New cars in Australia typically cost $25,000-$50,000+ for a decent model, while a reliable used car can be found for $5,000-$15,000. Here's how they compare:

Where to Buy a Car in Australia

Licensed Dealers

Buying from a licensed car dealer is the safest option for new arrivals. Dealers must comply with Australian Consumer Law, which means:

• Used cars come with a statutory warranty (typically 3 months or 5,000km, whichever comes first) in most states
• The car must be roadworthy and safe to drive
• The dealer must disclose known defects and the car's history
• You have consumer rights if the car has a major fault

The downside is dealers are generally 10-20% more expensive than private sellers. However, the warranty and peace of mind are often worth the premium, especially if you're not mechanically inclined.

Private Sellers

Buying from a private seller (individual person) is usually cheaper, but there is no warranty. The car is sold "as is" and you take on all risk. This can be fine if you're mechanically savvy or willing to pay for an independent inspection.

Common places to find private sales:

• Carsales.com.au — Australia's largest car marketplace. You can filter by price, location, make, model, year and more
• Facebook Marketplace — increasingly popular, especially for budget cars under $10,000. Be extra cautious of scams here
• Gumtree — another classifieds site with lots of used car listings
• Car dealer auction sites — like Pickles or Manheim for wholesale cars (more suited to experienced buyers)

Car Auctions

Government and insurance company auctions can offer good deals, but they are risky for new buyers. Cars are often sold without warranty or inspection opportunity, and you may not be able to test drive. We don't recommend auctions for first-time buyers in Australia.

Essential Checks Before Buying a Used Car

Before you hand over any money for a used car, you need to complete these checks. This applies whether you're buying from a dealer or private seller:

1. PPSR Check (Personal Property Securities Register)

This is the most important check you can do. A PPSR check tells you if:

• The car has money owing on it (finance/loan). If you buy a car with outstanding finance, the lender can legally repossess it from you
• The car has been reported stolen
• The car has been written off by an insurer (damaged beyond economical repair)

A PPSR check costs just $2 and takes minutes. Do it at ppsr.gov.au. You'll need the car's VIN (Vehicle Identification Number) or registration number.

2. Independent Mechanical Inspection

Pay for a qualified mechanic to inspect the car before you buy it. This typically costs $150-$300 and covers the engine, transmission, brakes, suspension, electrics and bodywork. Many mobile inspection services will come to the car's location. Companies like the RACV (VIC), NRMA (NSW) or RACQ (QLD) offer pre-purchase inspection services.

If the seller refuses to let you get an independent inspection, walk away. This is a major red flag.

3. Service History

Ask for the car's service logbook. Regular servicing (every 10,000-15,000km or annually) is a good sign that the car has been maintained. Missing service records don't necessarily mean the car is bad, but they increase the risk.

4. Test Drive

Always test drive the car. During the test drive, check for:

• Unusual engine noises, rattles or vibrations
• Smooth gear changes (manual and automatic)
• Brakes — they should stop the car evenly without pulling to one side
• Steering — should be smooth and centred
• Air conditioning — does it blow cold?
• All electrics — windows, lights, indicators, wipers

5. Registration Status

Check that the car's registration is current and how much time is left. You can check registration status for free on your state's transport authority website. If the car is unregistered, you'll need to get it registered before you can legally drive it — which requires a roadworthy inspection and payment of rego fees plus CTP insurance.

Registration (Rego) Explained

In Australia, every car driven on public roads must be registered with the state or territory transport authority. Registration ("rego") is an annual fee that includes:

• Registration fee — the cost to keep the car on the register
• CTP insurance (Compulsory Third Party) — also called a "green slip" in NSW. This covers injury to other people if you're in an accident. It does NOT cover damage to vehicles or property
• Road user charges — some states include this in the rego fee

You can usually choose to pay rego in 12-month, 6-month or 3-month periods. Shorter periods cost slightly more per day but reduce the upfront payment.

Car Insurance Types

Understanding car insurance in Australia is essential. There are four levels:

1. CTP (Compulsory Third Party) Insurance

This is mandatory and included in your rego. It covers injury to other people in a car accident. It does NOT cover damage to any vehicle or property.

2. Third Party Property Damage

This covers damage you cause to other people's cars and property — but not your own car. It typically costs $300-$500 per year and is the minimum we recommend for all drivers. Without it, if you cause an accident and damage a $80,000 car, you would personally owe the full repair cost.

3. Third Party Fire and Theft

Same as Third Party Property, plus covers your car if it's stolen or damaged by fire. Costs slightly more — around $400-$600/year.

4. Comprehensive Insurance

The full package — covers damage to other people's property AND your own car (accidents, theft, fire, hail, vandalism). Costs $800-$2,000+ per year depending on the car's value, your age, driving history and excess chosen. Worth it for newer or more valuable cars.

How to Transfer Ownership

When you buy a used car, you need to transfer the registration into your name. The process varies slightly by state, but generally involves:

1. Complete a transfer of registration form — both buyer and seller sign this. The seller usually provides the form, or you can download it from your state's transport authority website
2. Get a roadworthy/safety certificate — in VIC and QLD, the seller must provide a current roadworthy certificate. In NSW, a pink slip (safety check) is required for older vehicles. Other states have varying requirements
3. Pay stamp duty — this is a government tax on the purchase, calculated as a percentage of the sale price or market value (whichever is higher). It ranges from about 2% to 6% depending on the state and vehicle value
4. Visit your state transport authority — bring the signed transfer form, roadworthy certificate, proof of identity (passport + visa), proof of address, and payment for stamp duty and any remaining rego
5. Pay the transfer fee — typically $20-$40 depending on the state
6. Receive new registration papers — the car is now legally in your name

Ongoing Running Costs

Owning a car in Australia involves regular ongoing costs beyond the purchase price. Here's a realistic annual budget for a typical used car:

Fuel prices in Australia fluctuate but are generally between $1.60 and $2.20 per litre for unleaded petrol. Use apps like FuelMap or GasBuddy to find the cheapest fuel near you. Filling up on Tuesday or Wednesday is often cheaper than weekends in many cities due to the fuel price cycle.

How to Avoid Car Scams

Car scams targeting new arrivals are unfortunately common. Here are the biggest red flags and how to protect yourself:

• Price too good to be true — if a car is listed well below market value, it's likely a scam or has hidden problems
• Seller wants payment before you see the car — never send money before physically inspecting and test-driving the car
• Seller won't let you inspect the car — if they refuse an independent mechanical inspection, walk away
• Odometer tampering — compare the odometer reading with the service history. If the car has done 80,000km but has no service records, be suspicious. The PPSR check can sometimes flag discrepancies
• No registration papers — the seller should have the original registration papers. If they claim to have "lost" them, proceed with extreme caution
• Meeting in unusual locations — always inspect the car at the seller's address (which should match the registration). Meeting in a random car park is a red flag
• Pressure to buy quickly — "I have another buyer coming this afternoon" is a classic pressure tactic. A genuine seller will give you reasonable time

Your Car Buying Checklist

Follow this step-by-step checklist when buying your first car in Australia:

1. Decide your budget (include rego, insurance and transfer costs — add about $1,500-$2,500 on top of the purchase price)
2. Research cars in your price range on Carsales or Facebook Marketplace
3. Get your driver's licence situation sorted — know whether you can drive on your overseas licence or need an Australian one
4. Arrange viewings and test drives for your shortlisted cars
5. Run a PPSR check on any car you're serious about ($2 at ppsr.gov.au)
6. Book an independent mechanical inspection ($150-$300)
7. Check the service history and registration status
8. Negotiate the price — research comparable cars on Carsales to know the market value
9. Complete the transfer of registration at your state transport authority
10. Arrange your own insurance (at minimum Third Party Property)
11. Register with a local mechanic for ongoing servicing

Frequently Asked Questions

Do I need an Australian driver's licence to buy a car?

No, you do not need an Australian licence to purchase a car. However, you need a valid licence to drive it. Most states allow you to drive on your overseas licence for 3-6 months after arrival (with an English translation if needed). After that period, you must obtain an Australian licence. Read our driver's licence guide for details.

What is a PPSR check and why do I need one?

A PPSR (Personal Property Securities Register) check tells you if the car has money owing on it (finance), has been reported stolen, or has been written off by an insurer. It costs about $2 per search at ppsr.gov.au. If you buy a car with outstanding finance, the lender can legally repossess it from you — even though you paid for it. Always do a PPSR check before buying a used car privately.

How much does car registration cost in Australia?

Registration (rego) costs vary by state and vehicle type. For a typical small-to-medium car, expect to pay between $300 and $900 per year. This usually includes CTP (Compulsory Third Party) insurance, which covers injury to other people in an accident. NSW and QLD tend to be the most expensive states for registration.

Is it better to buy from a dealer or private seller?

Dealers offer statutory warranties (usually 3 months or 5,000km in most states) and consumer protection under Australian Consumer Law. Private sales are usually cheaper but come with no warranty — you buy as-is. For new arrivals unfamiliar with Australian cars, buying from a licensed dealer is generally safer, even if slightly more expensive.

What insurance do I need for my car in Australia?

CTP (Compulsory Third Party) insurance is included in your registration and covers injury to other people. However, it does NOT cover damage to vehicles or property. You should also get at minimum Third Party Property insurance (covers damage you cause to other people's cars/property) which costs about $300-$500/year. Comprehensive insurance covers your car too and costs $800-$2,000+/year.

Can I buy a car on a temporary visa?

Yes. There is no visa requirement to purchase or register a car in Australia. You need proof of identity and an Australian address. Some states accept a passport and visa grant letter as ID. You will also need a valid driver's licence — either your overseas licence (within the allowed period) or an Australian licence.

For more on your first 30 days in Australia, check out our comprehensive settling-in guide.