Buy a vehicle for your tour of Australia and sell it when you leave. (updated 2023)
Buying a Vehicle in Australia
Are you planning to tour Australia for your next trip? You will need a vehicle. Should you purchase one or rent?
For trips of less than 2.5 months, it is probably not worth buying a vehicle due to the amount of time required to buy and sell it. For long trips, it is the way to go. Renting a vehicle is expensive. You may lose some money if you buy and sell a vehicle, but it is a lot cheaper than renting. The longer the trip, the more money you will save by buying instead of renting. I have done this three times – in Germany, New Zealand and Australia.
Buying a Vehicle in New Zealand
In New Zealand, buying a vehicle is easy. You pay your money, spend about one hour doing the paperwork, and drive away. Here is my link to purchasing a vehicle in New Zealand.
https://mythatchedhut.com/buying-vehicle-new-zealand/
Buying a Vehicle in Australia by State
Buying a vehicle in Australia is not so simple. New Zealand is just one entity, but Australia is divided up into states like North America, each with its own licence plates and regulations.
Licence Plates
In Australia and New Zealand, the licence plates belong to the vehicle and will go with the vehicle when it is sold. In North America, the licence plates belong to the owner and not the vehicle, so a new buyer must supply his own licence plates.
Registration
You can register your vehicle for different amounts of time depending on the length of your trip. However, it is essential to ensure you have sufficient time to complete your journey and return to the same state where you purchased the vehicle. Renewing your licence plate registration in a different state will be difficult.
Dealer or Private
You must decide whether to purchase your vehicle from an auto dealer or a private sale. They both have advantages and disadvantages. Personal deals are usually cheaper, but dealers can give you a warranty and do all the necessary paperwork.
Roadworthy Certificate
You will need a roadworthy certificate before you can register the vehicle. This will include inspecting all safety features such as brakes and lights. However, it does not ensure that the engine or other mechanical parts are in good condition.
You should get this inspection and a complete mechanical inspection before buying a vehicle. It is worth the money to ensure you don’t get a lemon that will leave you stranded and cost you a lot of money. If buying from an auto dealer, get the inspection done elsewhere, not from the dealer selling you the vehicle. If the owner, private or dealer, refuses to let you get the vehicle inspected, shop for a different vehicle.
What Kind of Vehicle to Buy?
You can buy a very inexpensive car if you are mechanically inclined and don’t mind sleeping in a tent. However, if you are on a long trip all around Australia and want some comfort, you will probably want a camping van such as a Toyota Hiace.
Depending on where you want to go, you may need a 4×4 vehicle. You can travel most of Australia with a two-wheel drive, but some remote places and national parks require a 4×4.
Buy a popular brand such as Toyota or Ford. If you purchase a less common vehicle and it breaks down, you may have difficulty getting it repaired or buying parts.
Insurance
Be sure to get adequate auto insurance. Basic third-party insurance is included with the cost of registration. This only covers medical expenses for anyone you may injure. It does not cover any damage to your vehicle or others. (Exactly what is covered may vary from state to state). You should get extra insurance even if you purchase a very cheap vehicle. Imagine the consequences if you crash into a Mercedes or any newer vehicle.
If you are buying a car, any insurance company will do. However, if you are buying a camping van, I suggest you get your insurance from a company called CIL. They are the only auto insurance company in Australia that provides full insurance for camping vehicles. You may have to send them photos of the exterior and interior before they will sell you insurance. Here is a link to CIL:
http://www.cilinsurance.com.au/
Is the Vehicle Stolen?
Check to see if the vehicle has been stolen, has been in a serious accident, or has money owing. If there is a bank loan with the vehicle as collateral, you may be responsible for the payment, or the vehicle could be repossessed. You can check this at:
This costs $25 but is well worth it.
If buying from a dealer, they should provide proof that this was done.
Roadside Assistance
Purchase roadside assistance from an automobile club. You will be glad you did if the vehicle breaks down. There are different clubs to purchase this from, depending on the state. For example, in New South Wales it is called NRMA (National Road and Motorists Association).
Dealers
A couple of good dealers for camping vehicles in Sydney are Travellers Auto Barn and Travelwheels.
Car Markets
Car markets are an excellent place to look for a vehicle. Some of the better ones are:
Cars 4 Backpackers
Backpacker Car Club
Car Market
Travellers Car Market
Car Markets are a great place to sell your vehicle. However, the one in Sydney is in an underground parking garage, and tall camping vehicles will not fit.
Online Sales
Shop online for a vehicle at websites such as Gumtree. This is also great for selling your vehicle and is how I sold mine.
Ownership Papers
After you buy the vehicle and drive away, you must stop at a vehicle registration office to change the ownership papers into your name. If you are from North America, you will be shocked at the price of this. It is 3% of the vehicle’s value, which could be hundreds of dollars. This is not a fair method as cheaper vehicles drive on the road and use government services just as much as a more expensive vehicle. (Prices are subject to change and vary from state to state).
Your Address
To get all the paperwork done, you will need an address in the state where you purchase the vehicle. If you don’t have a friend or relative, ask the place where you are staying if you can use their address. You will need a place to stay for the first week while shopping for a vehicle. I suggest you don’t use a hotel. Instead, use a B&B or a private house with a room for rent. You can search for these on the Internet. They are cheaper than hotels and give you an address. Ask before renting if the owner will allow you to use their address while in Australia. You can offer to stay at their place again for the last week of your trip.
Warranty
Many dealers will offer a warranty, but I am not sure this is a good deal. Besides the fee to purchase the warranty, you will be required to get an oil change and safety inspection every 5,000 km. Australia is very expensive, and this may cost you more than the cost of repairs if you have a breakdown.
Also, getting the work done is difficult. There are no quick oil change places like in North America. You will need to find an auto dealer such as Ford or Toyota or a private garage to do it, and most of them will require an appointment in advance. For a small four-cylinder engine, this will cost you more than $200. Before buying a warranty, check to see a list of what is covered and what is not covered. There are different levels of coverage. Short of a major engine failure, it will probably be cheaper to pay for the repairs than the warranty and a lot more convenient. Getting an oil change is good, but you can do it at your convenience instead of when the warranty requires it, and you don’t need a safety check every 5,000 km.
Selling your Vehicle
Be sure to allow time to sell the vehicle at the end of your trip. This could take a couple of days to a week or more. This is one disadvantage of buying a vehicle. If you know someone in Australia who could sell it for you after you leave, that would be one way to avoid this problem. I sold my vehicle online with Gumtree.
Dealer Buy Back
Some dealers will offer to repurchase the vehicle from you at the end of your trip. They usually pay about 50% of the price that you paid. You should be able to get a lot more in a private sale. However, if this offer is made, get it in writing. This is not a good deal, but it gives you something to fall back on if you get desperate to sell it before your flight out.
Selling Paperwork
The paperwork for selling the vehicle is easy. Just fill out the form on the back of the registration paper, take it to a government motor vehicle agency, and tell them you have sold the vehicle. Very important – failure to do this could mean that you are responsible if the new owner has an accident with the vehicle.
Fines
Do not speed or do anything illegal while driving in Australia. Many towns have speed cameras. You might get a speeding ticket and not be aware of it. The ticket will be mailed to your address, and if you do not pay the fine within a specific time limit, they will cancel your vehicle registration, and you will be driving illegally and may not know it. If you get into an accident while driving illegally, your insurance company will probably not pay any money. This is a very dangerous policy, so do not speed. You could telephone the place where you have an address once a month to see if there is any mail for you.
Australian licence plates do not have any sticker or indication to show if they are expired or cancelled. In North America, you pay for a year, and your licence plates cannot be cancelled until they expire. You have paid for it and are entitled to it whether you have speeding tickets or not. If you don’t pay your fine, you will not be able to renew the registration, but it will not be cancelled early. This is a terrible policy and could put you in danger if you are unaware you received a ticket.
Driving in Australia
Drive slowly. Unless you are from Britain, you will probably not be accustomed to driving on the left. Also, collision with wildlife is common. Watch for kangaroos jumping out of the bushes right in front of you. Many vehicles in Australia have what they call a bull bar across the front to protect their vehicle from damage in the event of a collision with a kangaroo or wombat. I suggest that you never drive after dusk.
Important
Here is a summary of the most important facts:
1. Make sure you have sufficient registration to complete your trip.
2. Purchase adequate insurance.
4. Check the vehicle records to see if it is stolen, written off or has a loan against it.
3. Be sure to notify the government agency when you sell the vehicle so that you are no longer responsible
Summary
While you might get a vehicle that causes you a lot of mechanical problems, the odds are in your favour. I have done this three times and drove tens of thousands of kilometres across Europe, New Zealand and all around Australia without any significant problems. For trips of more than three months, it will save you a lot of money. Happy Trails.
My Thatched Hut Travel Tip
My Thatched Hut Travel Tip. If you are camping in Australia, download a Wikicamps Australia program. It shows all the campgrounds in the country and gives information about them, including free ones. It costs $7 and can be used offline once downloaded. Great program.
This website has many articles about things to see and do in Australia. Click on Australia in the category box.
Buying a Vehicle in North America
There is also a post on this website about buying a vehicle in North America. You can see it here:
https://mythatchedhut.com/buying-vehicle-canada-usa/
Buying a Vehicle in Europe
Burying a vehicle in Europe is much more difficult than buying one in Australia, New Zealand, or North America. Well, anyone can purchase a vehicle but you won’t be able to licence it. In most European countries, you must be a resident in order to register a vehicle.
One way to get around this is to produce a letter saying that you have lived there for more than one year. In this case, you do not need to be a citizen or own a house. You can just rent a room. They may check to see if it is true or they may want to mail your registration papers to that address. They do not allow tourists to register a vehicle.