Property taxes in Australia: Full guide for Americans
Want to learn about property taxes in Australia? This guide covers types of property taxes and how they are calculated to help you navigate the process.
How to buy a car in Australia as a foreigner: US guide
Australia's long distances and spread-out cities make it essential to own a car for a convenient daily life. As an American living or planning to live in Australia, you probably have questions about the buying process, registration requirements, and costs.
Can you buy a car in Australia as a foreigner? What documents do you need? How much should you budget in addition to the purchase price?
Here's everything you need to know about how to buy a car in Australia as an American to get on the road faster and avoid expensive mistakes.
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Can Americans buy a car in Australia?
Yes, Americans can buy a car in Australia. However, this is usually only something you can (and should) do when you're staying in the country long-term.
Technically, there's no citizenship or residency requirement for purchasing a vehicle, but the practical aspects of registration and insurance work better when you're legally living in Australia.
For starters, you must have a permanent address in the state or territory where you plan to register the car.¹ This means you'll need proof of where you live, which tourists often struggle to provide.
You'll also need a valid driver's license to drive your car once you own it, even though you don't need it to complete the purchase.
Theoretically speaking, short-term visitors can buy cars, but they face practical challenges that are often hard or impossible to overcome without a residency status.
What are the requirements to buy a car in Australia as a foreigner?
Different states and territories in Australia have different rules for car ownership, but you'll likely need the following to complete your purchase:
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Proof of identity: You'll need your passport and potentially additional ID documents depending on your state's requirements
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Proof of address: A lease agreement, utility bill, or bank statement showing your Australian address is typically required for registration
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Driver's license: Your US license works temporarily, but you may need an International Driving Permit or Australian license, depending on how long you're staying
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Vehicle inspection certificate: Many states require a roadworthiness certificate (also called a safety certificate) confirming that the car meets safety standards before registration¹
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Proof of insurance: You must have at least Compulsory Third Party (CTP) insurance before you can register and drive the vehicle²
Registration rules will vary depending on whether you're based in New South Wales, Victoria, Queensland, or another territory, so check with your local transport authority to confirm the specifics of what you'll need.
Types of cars to buy in Australia
New cars
New cars come with manufacturer warranties, the latest safety features, and no history of previous owners. However, they're more expensive up front and depreciate quickly in the first few years.
Some Americans in Australia decide to buy a new car, but for more affordable options, you can also take a look at the used car market.
Used cars
Used cars dominate the Australian market because they typically offer better value for your money. You'll find plenty of well-maintained options at lower prices, though you take on more risk without a manufacturer's warranty.
Where to buy a car in Australia
Here are a few options for where you can buy a car in Australia:
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Authorized dealerships: Brand dealerships sell new cars with full warranties and sometimes offer certified pre-owned vehicles with limited warranties
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Used car dealers: Independent dealers specialize in pre-owned vehicles across multiple brands, often providing some warranty coverage and helping with registration paperwork
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Online marketplaces: Websites like Carsales, Gumtree, and Facebook Marketplace list thousands of vehicles that you can compare online
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Private sellers: You can buy a used car directly from its owner, but you'll have to handle all inspections, paperwork, and registration yourself
Many foreigners in Australia buy their cars from dealers, but if you know a reliable private seller in your community, that can also be a good option.
How much is a car in Australia?
Car prices in Australia will depend on whether you're buying new or used as well as on the vehicle's age and condition. You'll also have to cover expenses like registration fees and insurance costs.
Here's what to expect:
| Expense | Cost (USD)³ ⁴ ⁵ |
|---|---|
| Volkswagen Golf 1.5 (new compact car) | 28,144 USD |
| Toyota Corolla sedan 1.6 (new mid-size car) | 25,460 USD |
| Vehicle registration | Depends on the state |
| Compulsory Third Party (CTP) insurance | Depends on the state |
| Comprehensive car insurance (annual) | 617 USD |
| Roadworthiness inspection | 90 USD to 97 USD |
| Stamp duty | Depends on the state |
These costs are approximations, and they depend heavily on which state or territory you're in. The car price you pay in Australia can also go up and down depending on your location.
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How to buy a car in Australia: step by step
1. Set your budget
Calculate how much you can spend on the car, plus costs like registration and insurance.
Keep in mind that you'll likely need to pay in full since financing options for foreigners are limited or come with strict requirements.
2. Research and find your car
Browse online marketplaces and visit Australian car dealerships to find vehicles in your price range. If you decide to buy a used car in Australia, focus on vehicles with a full service history and reasonable mileage for their age.
3. Inspect the vehicle
Arrange a pre-purchase inspection with a qualified mechanic, especially for private sales.
You'll also want to check the car's history using the Vehicle Identification Number (VIN) through services like PPSR (Personal Property Securities Register) to confirm that there are no outstanding finance or theft records.
4. Negotiate the price
Discuss the final price with the seller and agree on terms. For private sales, be prepared to negotiate more than you would at a dealership.
5. Buy car insurance in Australia
Purchase Compulsory Third Party (CTP) insurance, which covers injury to other people in an accident. You should also get comprehensive insurance to protect your own vehicle, but it's not always legally required.
6. Complete the paperwork
Fill out the transfer of registration forms and provide your proof of identity and address. The seller should give you the vehicle's registration papers and a receipt showing the purchase price and date.
7. Register the vehicle
Registration rules vary by state, so check your territory's transport department website for specific requirements.
If you buy from a dealership, they typically handle the registration process for you. For private sales, you'll usually need proof of purchase, your passport, and your driver's license.
Some states also require a roadworthiness certificate from a licensed inspector before registration.
8. Pay stamp duty and fees
Pay the required stamp duty based on your vehicle's value and your state's rates. You usually need to pay this tax during the registration process.
9. Get your registration
Once everything is processed, you'll receive your registration papers and license plates. You should keep these documents in your car at all times (instead of at home).
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Driving in Australia: Requirements
Make sure you know Australian road rules before driving in your new car:
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Australians drive on the left side of the road, opposite to the US, so you'll need time to adjust to this change
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Speed limits are strictly enforced with cameras throughout cities and highways, and there are high fines even for minor violations
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Australians use the metric system, so speeds are in kilometers per hour (not miles), and fuel is sold in liters (not gallons)
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All passengers must wear seat belts at all times, and children must be properly secured in age-appropriate car seats or booster seats
Overall, it's important to drive safely in Australia. Getting in trouble with the police, especially for something serious like drunk driving, while you're living in the country on a visa, can negatively affect your legal standing.
How to import a car from Australia to the US
Importing a car from Australia to the US is possible, but you'll have to meet federal safety and emissions standards.
The vehicle must comply with Department of Transportation and Environmental Protection Agency regulations, which often require modifications that can cost thousands of dollars.
Generally speaking, most Americans find it more practical to sell their Australian car before returning home to the US rather than importing it.
Buying a car in Australia as an American is usually pretty straightforward when you're staying long-term and have a permanent address.
The process comes with familiar steps you may have already experienced in the US, such as finding a car, getting it inspected, arranging insurance, and completing registration.
Dealerships often make it even easier by handling most of the paperwork for you.
But what many Americans in Australia don't consider is how much they lose on international money transfers and currency exchange. Using your US card to pay for a car or regularly sending money between countries comes with high fees and poor exchange rates.
When you're making a large payment like buying a car or transferring funds for living expenses, these costs add up fast.
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Sources
- Upmove - Can foreigners buy a car in Australia?
- Monito - A Quick Guide to Buying a Car in Australia as a Foreigner
- Numbeo - Cost of Living in Australia
- Money.Com.Au - Average Car Insurance Cost & Statistics in Australia
- ASAP Roadworthys - How Much Does a Roadworthy Cost 2025?
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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