How to buy a used car in Australia
Set a budget that includes running costs, check the car's history with a $2 PPSR search, have it inspected, and transfer the registration on time. Here is each step in order.
Short answer
Work out what you can afford including running costs, shortlist cars, check each one's history with a PPSR search, inspect and test drive it, agree a price in writing, pay in a way you can trace, and transfer the registration within your state's deadline.
Buying a used car is mostly a matter of doing a few checks in the right order. None of them is difficult, and each one protects you from a different problem: paying too much, buying a car with money owing on it, or ending up with a car that needs expensive repairs.
1. Set a budget that includes running costs
The purchase price is only part of what a car costs. Before you look at listings, add up what it will cost to keep the car on the road:
- Registration. How much you pay depends on where you live and the type of vehicle.
- Compulsory third party (CTP) insurance. You need it to register a car. In New South Wales it is bought separately from an insurer (the "green slip"); in the other states and territories it is included in the registration cost.
- Other insurance. Third party property, or comprehensive cover, is optional but worth pricing before you choose a car.
- Servicing, tyres and repairs.
- Fuel or charging, parking and tolls.
If you need a loan, compare loans before you start shopping for the car, not at the moment you are being asked to sign. See car loan basics.
2. Decide where to buy
There are three common ways to buy a used car, and your legal protection is different for each:
| Licensed dealer | Private seller | Auction | |
|---|---|---|---|
| Consumer guarantees | Apply | Mostly do not apply | Mostly do not apply |
| Warranty | Often a statutory warranty, which differs by state | None | None |
| Test drive | Yes | Yes | Usually not |
| Typical price | Higher | Often lower | Often lower |
The detail is in dealer or private seller. On Australia Motors you can filter cars for sale by seller type, and browse dealers directly.
3. Shortlist and compare
Compare like with like: the same model, a similar year and similar kilometres. Read each description for the service history, the number of owners and any damage the seller mentions. A listing that says little is not necessarily a bad car, but it is a reason to ask more questions before you travel to see it.
4. Check the car's history before you inspect it
Ask the seller for the vehicle identification number (VIN). With it you can run a PPSR search for $2. The search tells you whether there is a security interest recorded against the car, which means money could be owing on it, and usually whether it has been recorded as written off or stolen. Do this before you spend time or money on an inspection, and again on the day you buy. See what a PPSR check tells you.
Most states and territories also offer a free online registration check using the number plate. It confirms the registration status and expiry.
5. Inspect it and test drive it
Look the car over in daylight, check that the VIN on the car matches the paperwork, and drive it on different kinds of road. Our used car inspection checklist lists what to look for. For anything beyond a cheap runabout, an inspection by a qualified mechanic is the safest option.
Warning
A roadworthy or safety certificate is not a mechanical inspection. It confirms that basic safety items passed on the day; it does not tell you the car is reliable. See roadworthy and safety certificates explained.
6. Agree the price and pay safely
- Never pay a deposit or the full price for a car you have not seen.
- Get a receipt that shows the car's details (plate, VIN, make and model), the date, the price, and the names, addresses and signatures of buyer and seller.
- If there is finance owing, make sure it is paid out and the security interest is removed as part of the sale, and ask for evidence.
- Pay in a way that leaves a record, and check that the account name matches the person you are dealing with.
More on this in how to avoid scams.
7. Transfer the registration
Every state and territory has its own transfer process, fees and deadline. In New South Wales, for example, the buyer must transfer the registration within 14 days to avoid a late fee, and the seller lodges a notice of disposal. Check the transport authority for the state the car is registered in, and do it straight away: until the transfer is done, the records do not show you as the owner.
On Australia Motors
Related guides
Sources
The facts in this guide were checked against these sources. Rules and processes differ between states and territories and change over time: always confirm with the authority for where you live. This guide is general information, not legal or financial advice.
- Moneysmart (ASIC), Buying and running a car (checked )
- Personal Property Securities Register (Australian Financial Security Authority), Do a used car or vehicle search (checked )
- Australian Competition and Consumer Commission, New and second-hand cars (checked )
- Service NSW, Buying a vehicle (checked )