Checklist for Purchasing a Car in Australia: A Guide for Visitors and New Residents
Whether you’re a tourist exploring the vast landscapes of Australia or a new resident trying to settle down, having a car can significantly enhance your mobility and experience. While public transport is a viable option in many cities, owning a vehicle can provide you with the freedom to explore remote areas and enjoy the beautiful Australian countryside. However, purchasing a car involves several considerations. This comprehensive checklist will help you navigate the car-buying process in Australia, ensuring you make informed decisions.
Advantages of Owning a Car
Flexibility: Travel at your own pace and schedule.
Access to Remote Areas: Explore national parks and coastal regions that may not be easily accessible by public transport.
Comfort: Enjoy the convenience of your own space, especially if traveling with family or friends.
Disadvantages
Cost: Owning a car involves ongoing expenses such as fuel, insurance, and maintenance.
Traffic and Parking: Major cities can have heavy traffic and limited parking.
Understanding the Costs of Cars
Before diving into the car market, it’s essential to understand the costs associated with purchasing a vehicle in Australia.
Initial Purchase Price
The price of cars in Australia can vary significantly based on factors such as brand, model, age, and condition. Here’s a rough breakdown:
New Cars: Typically range from AUD 20,000 for compact models to AUD 100,000+ for luxury vehicles.
Used Cars: Prices can start as low as AUD 5,000 for older models and can go up to AUD 50,000+ for nearly new vehicles.
Australia has a well-established public transport system, especially in major cities like Sydney, Melbourne, and Brisbane. However, depending on your location and lifestyle, owning a car may be more convenient.
Servicing Costs
Regular servicing is essential, typically costing between AUD 150 to AUD 400 per service, depending on the vehicle and type of service required.
Registration Fees
In Australia, all vehicles must be registered. Registration costs vary by state and vehicle type but generally range from AUD 300 to AUD 1,000 annually.
Registration requirements vary between the states, but generally involve identification documents like passport and a driver’s license, receipt of sale and a road worthiness certificate.
State agencies in Australia for Registration of Vehicles
- Victoria – www.vicroads.vic.gov.au
- New South Wales – www.rta.nsw.gov.au
- Queensland – www.tmr.qld.gov.au
- South Australia – www.transport.sa.gov.au
- Western Australia – www.transport.wa.gov.au
- Tasmania – www.transport.tas.gov.au
- Northern Territory – www.nt.gov.au/transport/mvr
- Australia Capital Territory – www.canberraconnect.act.gov.au
Insurance
Insurance is a vital aspect of car ownership. In Australia, you must have at least third-party insurance, which covers damage to other vehicles and property in the event of an accident.
Australia has an advanced insurance market with multiple options available. Third party insurance is available for owners who are not concerned about the loss of their own car, and is a minimum requirement by law. It is a legal offense to operate a vehicle without the appropriate insurance and stiff fines await those willing to risk it. One can expect to pay between 600 AUD and 2000 AUD annually for a comprehensive insurance policy.
Types of Insurance
Third-Party Insurance: Minimum legal requirement.
Third-Party Fire and Theft: Covers damage to other vehicles plus your vehicle if it’s stolen or damaged by fire.
Comprehensive Insurance: Covers damage to your vehicle and others in an accident, theft, vandalism, and more.
Fuel prices in Australia fluctuate, but as of late 2024, the average price is around AUD 1.65 to AUD 2.00 per litre. Here are some tips to manage fuel costs:
Choose Fuel-Efficient Vehicles: Consider cars with better fuel economy to save on long-term fuel expenses.
Use Fuel Price Apps: Utilize apps that track fuel prices to find the cheapest options nearby.
Other Points to Consider
- Before purchasing a used vehicle, it’s crucial to check its history. This can help you avoid buying a car with hidden issues. Key Checks Include Rego Check to verify the vehicle’s registration status, PPSR Check to conduct a Personal Property Securities Register (PPSR) check to see if there’s any outstanding finance or if the vehicle has been written off, and Service History to ask for service records to ensure the vehicle has been well maintained.
- When purchasing a car in Australia, you’ll need to pay stamp duty, a tax on the transfer of ownership. The amount varies by state and the value of the vehicle but generally ranges from 3% to 5% of the purchase price. Be sure to factor this into your budget. The Internet hosts an assortment of calculators and tables allowing you to approximate the cost of stamp duty, be sure to incorporate these additional costs into the eventual cost of the vehicle, as they can and do amount to a significant sum.
- Before hitting the road, ensure your vehicle passes a roadworthy inspection. This check assesses the vehicle’s safety and compliance with Australian standards. A roadworthy inspection checks Brakes, Tyres, Lights, Steering and suspension, Windshield wipers
Checking the history of the car to make sure it’s not stolen, encumbered by an outstanding loan, or even a previous write-off is always a good idea. To check the history get the car’s VIN number from the seller and check against the databases in the state in which it’s registered. There could be a small fee in some states.