Backpacker's Guide to Buying a Vehicle in Australia

What's the process? Can I legally drive with my foreign license? How much should I spend? A simple guide to purchasing a vehicle as a foreigner in Australia.

What to Expect

So, you're going to be in Australia for an extended trip or working holiday and decide having your own wheels makes sense. It'll save you money and give you the freedom & flexibility to get the most out of your trip. (Seriously, it's SO worth it, if you can.)

You found a solid vehicle at an affordable price, inspected it, and want to buy it. Now what?

Costs

I met a traveler who spent $17,000 on a small, mediocre car in Tasmania. Be informed and pay a fair price.

Depending on the time of year, most backpackers can find a car for under or around $5,000 AUD. Obviously, vans, utes (trucks), and newer vehicles will be more expensive.

Consistent with this claim, I found a nice, small car for $4,000 AUD (about $2,800 USD, right now) on Facebook marketplace. It's mechanically sound, not very old, and will do just fine getting me around.

I also had to pay a tax and transfer fee when I transferred the vehicle to my name. The fees for my car were about $156 AUD in total, but this cost depends on the market value of the car, so it will vary.

Note: I met travelers who paid less than $2,000 AUD for their car, albeit junky, so just know that you'll be able to find wheels no matter your budget.

Payment

Be ready with cash or enough money in your Australian bank account to do an instant transfer when you purchase.

Keep in mind:

• Bank cards have smaller daily withdrawal limits abroad, so it may take a few days to take out enough money from an ATM for your purchase.

• International wire transfers can take 3-5 days. So, if you don't have money in your Australian bank account yet, get that taken care of before the sale so you can do an instant transfer using your domestic bank account.

What You'll Need

Every state has slightly different requirements when buying & selling a vehicle. You can find a helpful state-by-state guide here or go to the state's Transport Services website for direct information.

Tasmania

I bought my car in Tasmania, where the process is pretty straightforward:

1. Complete the Transfer & Disposal form with the seller on the back of the vehicle's "rego," or registration. Make sure they sign every required part and put their license number down!

2. Make a receipt that includes the buyer & seller's names, addresses, signatures, make, model, color, year of vehicle, date of sale, price, plate number, and Vehicle Identification Number (VIN). The seller is supposed to do this, but don't count on it.

3. Collect 3 forms of identification and proof of residency. I used my passport/visa (only counts as 1), my Australian bank card, my VEVO, and a bank statement with my current host's Tasmanian address.*

4. Transfer the vehicle to your name by going to Service Tasmania and providing the transfer & disposal form, receipt, and proof of identity/residency.

5. Pay the tax and transfer fee.

And enjoy your adventure!

*Important note: as a foreigner, you won't always be able to meet the requirements for proof of identity. But luckily, Service Tasmania has a system in place for us aliens. For me, the Service Tas worker made a quick call to somebody who verified my identity & status in the country, which enabled us to continue with the transfer.

So don't fret, bring what you have and the rest can be figured out.

Good to Know

• Foreigners are legally allowed to drive in Australia on a valid driver's license that is written in English or translated. Again, each state has varying degrees of this law, but you don't have to worry about getting an Australian license (unless you have a permanent residence visa).

• There are certain car dealers who specialize in selling affordable cars to backpackers. I'm told they make the process super easy and you can often sell it back to them for about the same price. Super smart option!

• You don't actually need your bank statement mailed for proof of residency. Just make sure you have the correct address in your bank account details online and it will automatically fill in the corner of your statement. So, all you have to do is print!

• It's a good idea to scroll through the online Road Rules Handbook because there are a few key differences on Australian roads from what you may be used to. Better safe than sorry! Click here for a link to the Road Rules of Tasmania. Otherwise, find road rules on the state's Transport Services website.

Hope you found this helpful!