Buying a Car in Australia: A Complete Guide

First, determine your budget. How much are you truly willing to spend on a car? While I can't see into your finances, I can advise against setting your budget to the absolute last cent. Owning a car comes with ongoing costs like petrol and maintenance. Plus, you'll still need money for food, drinks, and accommodation.

When budgeting, remember to account for transfer fees (look up "stamp duty" for the specific state where you're buying). The amount varies by state but is usually dependent on the purchase price of the vehicle.

Now that you have a rough idea of your budget, you can start your search for cars or campervans. Research car makes and models. Choose a few brands/models that fit your needs and driving style. You can also visit car dealerships to compare, view, and do your research. The advantage of a car dealership is that you have a statutory warranty after purchasing your car.

From experience, I know that parts for Jeep vehicles are less readily available (especially in remote areas), whereas this is generally the case with a Mitsubishi or Toyota.

Finding a Car

There are various places where you can find a car in Australia, and it depends a bit on what you're looking for and your budget. With a higher budget, it's better to look at car dealerships. If you want a ready-to-go car for camping, the Facebook group "Backpackers Cars" is the place to look.

Here are different ways to buy a car in Australia:

1. Facebook Market Place
2. Facebook Groups
   1. Backpackers Australia Car Sales
   2. Backpacker campervans for sale Australia
3. Backpacker Car Australia or OZTravel Sydney
4. Gumtree (primarily used by Australians)
5. Car Dealerships
6. Car Sales

Car Inspection & Checking Details

Get the Car Inspected

Before buying a car, have it inspected (pre-purchase car inspection) by an independent garage or mechanic. This will generally save you a lot of problems.

I once failed to do this properly. The mechanic "looked" at it and said it was fine. The car's condition was actually very poor, and I unfortunately had to get rid of it.

Check Car Details

Check online if the car still has registration (rego). Every vehicle in Australia must have a rego. You could compare a rego to the road tax in the Netherlands. When they ask for your rego, they sometimes also mean the car's license plate (license plate registration).

If possible, check the maintenance booklet so you know what has been done (recently) to the car. This can give you a good idea of how the car has been maintained and if it has already incurred many costs or might need to in the future.

Also, check if the car has been stolen or if there are any outstanding loans, debts, or other financial ties to the car. You can request this from the Personal Property Securities Register.

Pink Slip, Green Slip & Blue Slip

What's the difference between the pink, blue, and green slips in New South Wales (NSW)? I'll try to explain it as clearly as possible here, as I personally encountered difficulties with this when buying a car in Australia.

These three colored slips represent the safety, registration, and insurance of the car. See below for the meaning of each slip.

What is a Pink Slip?

For almost every regular car or campervan (light vehicles) older than 5 years, it is mandatory to have an annual safety inspection report (eSafety inspection report). This report is the pink slip.

The pink slip indicates that the car/campervan is safe and roadworthy. You can also see it as the annual MOT in the Netherlands.

When renewing a registration (rego), you can find out if the car needs a pink slip. You can have this done by a car garage (they advertise this or it's on their website).

You can then have the mandatory repairs done immediately. These repairs must be completed within 14 days, otherwise, a new report will have to be made, and you'll have to pay for it again – a waste of money.

What is a Green Slip?

The green slip represents the compulsory third-party insurance (CTP). Think of it as the third-party liability insurance from the Netherlands. This green slip is mandatory for every car. It covers costs if there is damage to others (let's hope it doesn't happen), such as medical costs and potential loss of income.

You must have a CTP green slip before you can register a car. A benefit is that if a car still has a current rego, it can be transferred to the buyer.

What is a Blue Slip?

A blue slip indicates that an unregistered car/campervan meets the safety requirements to be on the road.

All unregistered cars and campervans (light vehicles) need a blue slip. They need this before they can be registered in NSW, for example. The report is valid for 42 days. If you are going to register the car, you will need the original paper version of the blue slip to show.

Keep in mind that if you need a blue slip, you may spend more money and especially time arranging things. Most cars for sale will still have a current rego (registration).

Do I Need All Three Slips?

This depends on the car you want to buy. To save yourself trouble, I would recommend buying a car that still has a rego, preferably for half a year, so you don't have to worry about it for a while.

When you drive the car, you must have a green slip. And upon renewal of the rego/registration/green slip, you will need to be able to show the annual pink slip (a type of roadworthiness inspection) (only for cars older than 5 years).

If the rego (license plate registration) expired more than three months ago and you want to re-register the car or sell it as unregistered, you will need the blue slip.

How Do I Get a Slip for My Vehicle?

Pink slips and blue slips can be obtained through certain garages. You can easily find these online. For NSW, use this tool.

CTP Green slips can be arranged directly with approved insurers, such as AAMI or NRMA.

Buying a Car

Have you found a car that fits your budget and how you want to travel through Australia? Then you can go ahead and buy the car. When buying a car, consider the following.

Take a Test Drive

Anyone can (with the best intentions) say that the car is perfectly fine. But always take a test drive before you buy a car. By taking a test drive, you can experience for yourself how the car drives. Also, listen without the radio on and with a window open to hear if you notice any strange noises. You can then use this as leverage when negotiating the price.

Negotiate the Price

A car is almost always offered at a higher price to allow for negotiations. Definitely do this, as it will save you unnecessary costs.

Most backpackers want to get back the amount they themselves spent on a car. That's certainly fair, but by doing good research, you'll know what other comparable cars are worth.

If you're unsure if you can do it, just try. Be realistic, and every Australian dollar you spend less can be spent on something else, allowing you to enjoy your road trip even more.

Arrange Paperwork

Are you in agreement with the seller on the price and completely happy? Then it's time to arrange the paperwork, including the transfer of the car and the registration.

In NSW, you must have proof of purchase. This can be "Part B Registration transfer details" from the paper Certificate of Registration or a receipt from the seller with the following details:

• vehicle details (license plate, VIN/chassis number, color, make, and model)
• date and time of sale
• name, address, and signature of both you and the seller.

You then submit one of these two options to an NSW Service Centre within 14 days. You must also pay the Stamp Duty (a type of transfer tax) there immediately. Online might also be possible, but then the seller must have submitted a "Notice of Disposal (NOD)."

Costs After Purchase

Now that you've bought a car, there will be additional costs on top of the purchase price.
You can expect these costs when you have a car in Australia:

• Rego (Registration fees, a type of road tax)
• CTP green slip (car insurance)
• Roadside Assistance (breakdown cover)
• Maintenance & repairs
• Fuel costs

Also, keep in mind that you may need to apply for an Australian driver's license. You can have an international driver's permit for a maximum validity of 1 year.

Discover Australia

By doing your research, choosing the right car, and negotiating the price, you can find the perfect vehicle for you and your budget. And once you have that car, you'll have complete freedom to travel around Australia.

This will make your trip through Australia an unforgettable and unique experience! Want to know more about Australia? Check out the page about Australia.