How to Buy a Car as a New Migrant in Australia

New vs. Used Cars

A new car comes with a manufacturer's warranty and no service history to check, but new cars also lose a large share of their value in the first year.

A used car generally costs less upfront but carries more maintenance risk. There's no warranty unless the dealer offers one, so checking service history and getting a pre-purchase mechanical inspection matter more.

For a new migrant without an established Australian credit or driving history, a used car from a dealer is often the more practical starting point — see the trade-off below.

Private Sale vs. Dealer Purchase

Private sales:

• Usually cheaper, since there's no dealer markup
• No warranty unless one is written into the contract
• You handle the registration transfer paperwork yourself
• Fewer consumer protections if something goes wrong shortly after buying

Dealer purchases:

• Usually costs more but comes with a dealer warranty
• The dealer typically arranges the registration transfer
• Australian Consumer Law guarantees apply: a used car sold by a dealer must be of acceptable quality — safe, durable and free from defects for a vehicle of its age and price (ACCC)
• Trade-in and on-site finance options are often available

A dealer purchase trades a higher price for consumer-law protection and less paperwork; a private sale is usually cheaper but leaves more of the risk with the buyer.

Step-by-Step Buying Process

Step 1: Arrange Finance, If You Need It

Banks and licensed finance companies typically ask for proof of income, proof of address and identity documents (passport or visa). Interest rates and approval timeframes vary by lender and by your credit history, so it's worth comparing more than one.

Step 2: Set Your Budget

Beyond the purchase price, factor in: CTP insurance (compulsory — bought separately or bundled into registration depending on the state), the one-off registration transfer fee, optional comprehensive insurance, and ongoing costs such as fuel, servicing and registration renewal.

Step 3: Search for Vehicles

Sites such as carsales.com.au and Facebook Marketplace list both private and dealer vehicles. Filtering by age, mileage and service history narrows the search.

Step 4: Inspect the Car (If Private Sale)

Always inspect in person. Check for:

• Engine condition (starts easily, no unusual sounds)
• Transmission (smooth gear changes)
• Brake feel (not spongy)
• Tyre condition and depth
• Rust, dents, and accident damage
• Interior cleanliness and wear

An independent mechanic's pre-purchase inspection can catch defects a visual check misses.

Step 5: Do a PPSR Check

Search the car's registration number or VIN at ppsr.gov.au. The standard online search costs $2 (ppsr.gov.au, September 2026) and reveals:

• Money owing on the car
• Stolen or written-off status
• Other registered interests

Step 6: Negotiate and Agree on Price

Private-sale prices are usually negotiable; dealer prices less so. Get everything in writing — price, condition, any included items, delivery date.

Step 7: Handle Payment Safely

Use a traceable payment method — bank transfer or bank cheque — rather than cash. Request a receipt with the VIN, price, and seller's details.

Step 8: Transfer Registration

Each state's transport authority runs its own registration transfer process, with its own fee and timeframe. In a dealer purchase, the dealer usually arranges this; in a private sale, it's up to the buyer and seller.

Step 9: Arrange CTP Insurance

CTP insurance is compulsory in every state before you can register and drive a car. In NSW and South Australia you choose and buy it yourself before registering. In Victoria, Queensland, Western Australia and Tasmania it's included in the registration fee through a single scheme (see Key Contacts below). Comprehensive insurance, covering your own vehicle, is separate and optional.

Common Pitfalls

Skipping the PPSR check: A stolen or financed car leaves you liable. Always check first.

Ignoring service history: No service records suggest neglect. Avoid cars without records or ask for a mechanic's inspection.

Not inspecting the car: "It looked fine online" doesn't hold up. Always see and drive the car in person.

Buying without insurance: Driving uninsured is illegal and financially risky. Arrange CTP before collecting the car.

Paying before ownership transfer: If the registration isn't in your name, the car isn't legally yours. Don't hand over money until paperwork is signed.

Overlooking ongoing costs: Fuel, maintenance, and rego renewal add up. Factor these into your budget.

Using unfamiliar finance companies: Stick with banks or major lenders. Some small lenders have unfair terms.

Where to Buy

Online platforms:

• carsales.com.au and similar used-car marketplaces
• Facebook Marketplace (private sellers, local)

Dealerships:

• Franchised new-car dealers
• Independent used-car dealers

Comparing a few private listings against a dealer's price for the same model shows what the dealer's consumer-law protection and warranty are actually worth to you.

Insurance Explained

Compulsory Third Party (CTP): mandatory before you can register a vehicle. Covers injury to other people — drivers, passengers, pedestrians and cyclists — not your own car or its occupants. Whether you choose an insurer yourself or it's bundled into your registration depends on the state (see Key Contacts below).

Comprehensive: optional. Covers your own vehicle against theft, accident damage and weather events.

Third party property: optional. Covers damage you cause to someone else's vehicle or property; usually included within a comprehensive policy rather than sold separately.

Practical Next Steps

1. This week: Apply for car finance if needed. Start browsing cars online to understand the market.
2. Next 2–3 weeks: Inspect cars in person. Do PPSR checks on candidates. Negotiate with sellers.
3. Once decided: Complete payment safely. Arrange CTP insurance immediately.
4. After purchase: Transfer registration to your name. Buy comprehensive insurance if the car is valuable.
5. Within first month: Schedule a service to establish maintenance history.

Key Contacts

• PPSR (Personal Property Securities Register): ppsr.gov.au
• CTP insurance, by state:
• NSW: bought separately before registering, from a choice of insurers — greenslips.nsw.gov.au compares prices
• VIC: included in registration as the TAC charge, a single scheme — tac.vic.gov.au
• QLD: included in registration, insurer chosen from the licensed providers — maic.qld.gov.au
• SA: bought separately before registering, from a choice of insurers — ctp.sa.gov.au
• WA: included in registration, single provider (Insurance Commission of WA) — icwa.wa.gov.au
• TAS: included in registration, single provider (MAIB) — maib.tas.gov.au
• Australian Consumer Law guarantees on used cars sold by a dealer: accc.gov.au