Things To Know About Buying a Car in Australia

When you buy a car in Australia, some of the unexpected expenses may surprise you, For example, you will probably be taxed on the purchase price, which is something the seller will not include until you are ready to complete the sale.
Deciding where to shop
If you purchase the vehicle from a licensed dealer, you will have the protection of the Motor Dealers Compensation Fund, be guaranteed title and ownership, and be covered by a warranty the law requires—which varies from one state to another.


Note that if there is a loan attached to the vehicle, it could be repossessed and you would suffer a financial loss. If it is not encumbered, you will want to purchase a search certificate as a safeguard against repossession, and if the car is encumbered, do not make the transfer until you feel secure, unless you see no problem with the plan the seller has for repaying the lender.


If you decide to buy a car in a private sale or at an auction, consult the Register of Encumbered Vehicles (REVS) to ensure that the seller has a legal right to sell it. If everything is in order, you can also purchase a REVS certificate to ensure that the vehicle will not be repossessed by a lender. In addition, ask for the seller's certificate of registration, current safety-check report and tangible proof that the seller actually owns the car—such as a sales receipt—and review them carefully. If you find a discrepancy, be prepared to pay a small fee to have an Authorised Unregistered Vehicle Inspection Station (AUVIS) provide you with an identification check in order to proceed.
Additional fees to be paid
Remember that, in every type of vehicle sale, the state government collects the registration transfer fee, stamp duty (based on the value of the car), tax on the purchase price, and motor vehicle tax (paid on every car annually). Compulsory third-party insurance is also required.


Whenever you buy a vehicle in Australia, you need to do the following:

Transfer the ownership, or you may encounter legal problems.

Check with your state's motor registry department to determine if you have complied with all regulations.

To avoid complications, try to purchase the car where it has already been registered.

Have your permanent residence in the state where you want to transfer the vehicle's registration, because the registration will be recorded there.