When I went to buy a car in Australia, I had no idea what I needed to do. Pink slips, green slips, rego etc. made no sense to me. I did a lot of research and pulled together this guide on what you need to do to buy a car.

Before you buy:

These are mostly precautionary and mainly for if you are buying from a private seller.

• Ask if they owe any money on the car

• Get the certificate of registration (COR)

• Get the registration number, engine number, serial number, and vehicle identification number (VIN)

• Make sure the COR details match the VIN

• Check the PPSR to make sure they own the car and no-one else does (use the serial number and VIN to do this)

• Get a pink slip from the owner - this verifies that the vehicle is safe and ready for the road

• Go for a test drive:

  • Before that, ask to see the Green Slip - this is the third party insurance certificate that means you are insured while driving.

  • If you do this in a dealership, they will ask for your licence and get you to sign a form.

• Ask for the service book and warrant guarantee

Negotiating

• Negotiate on the price of the car. Recent research suggests you will get anything between 2% - 8% off the list price. If you are buying from a private seller, you should be able to negotiate more.

Financing your car:

• It is very common to use finance to buy a car. Most dealers will offer you this as an option and will source quotes for you from their finance providers.

• Typical rates are between 7% and 9.5%.

• There is definitely room for negotiation on this price - especially if you are dealing with the finance person from your dealer. 

Buying the car

• Ask the seller to complete and sign the back of the certificate of registration. If the vehicle is registered in two names, both must sign.

• Get a receipt that has:

  • your full name

  • the date of purchase

  • the amount paid

  • the vehicle’s VIN or chassis number and engine number

  • the seller’s driver’s licence, name and signature

• Get Insurance - including your green slip. Examples below for a quote on a 2021 Jeep Wrangler.

  • Option 1: Budget Direct - $900 - $2,000 excess - fully comp

  • Option 2: Budget Direct - $1300 - $900 excess - fully comp

Once you have done this, you are free to drive the car home

After you buy the car:

• Transfer the registration by going to the motor registry - you have 14 days to do this. Bring with you:

  • the certificate of registration for your vehicle, completed and signed on the back by the seller

  • proof of your identity eg. your driver’s licence

  • the receipt showing that you are the new owner

  • the transfer fee and stamp duty cost.

    • The Office of State Revenue (OSR) levies stamp duty when a vehicle is registered in a new name. Roads and Maritime Services collects the stamp duty on OSR’s behalf. You will pay stamp duty on the market value of the vehicle or on the price you paid for the vehicle, whichever is higher. Stamp duty is 3% of the market value of the car, up to $45,000 then 5% on the value over $45,000.