Shipping to Australia Blog

Some of the most frequently asked questions of new immigrants moving to Australia are regarding the process of buying a car.

There are many reasons for this but the biggest is probably that the price of an automobile in the country is often not what was originally negotiated. This is because there is a tax on the purchase price of the car that you are not informed about until after the purchase.

In addition, people are often just not familiar enough with the process so we will try to clarify some of the confusion.

Just as all over the world, cars can be bought both new and used in Australia. It is highly advisable to price around the various dealers and there are many organizations that can assist. For example, the Australian RAC will inspect any car you are interested in and the Motor Dealers Compensation Fund will protect you in any purchase of a used car as long as it’s from a licensed dealer.

Warranties will vary depending on the age/mileage/etc. of the car but three month / 5,000 km warranties for newer cars without tons of wear and tear on them are standard.

There are also several state government taxes that are to be paid when buying a car in Australia. These include: Registration Transfer Fee, Stamp Duty (total varies depending on price and location of car), Motor Vehicle Tax (annual fee), and Compulsory Third Party Insurance (required insurance in case you injure someone else).

A car that costs more than $57,009 and is purchased from a dealer will also require you to pay a Luxury Car Tax.

As is often the case when immigrating to a new country buying a car is commonly one of the biggest challenges for people moving to Australia. Reading through this list of things to keep in mind and doing your homework before making your purchase should ease the process and allow you to keep your thoughts focused on the other issues of your big move.

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