Buying a car isn’t always as simple as paying the money and driving it home. This is especially true if you’re buying a car from a state you don’t live in.
Buying a car in one state and moving to another requires more work than purchasing it from the same state you live in. And following some new guidelines implemented due to the pandemic, interstate car purchasing has become even more complicated.
If you’ve looked and found a car in another state you wish to buy, you just need to do some research to ensure it can go smoothly. To buy a car interstate, these are the factors you should consider:
Buying a car interstate limits the possibility of personally inspecting it. If you have friends or family that live close to the car's location, you could ask them to do an inspection. Another option is to pay a local mechanic to do a professional inspection on your behalf. The cost of the inspection may vary depending on the level of inspection you request them to do.
During an inspection, the mechanic will conduct a thorough internal and external inspection and likely check the car’s:
Some mechanics may also inspect the:
They will also take a test drive to ensure the transmission and engine are running smoothly. You should check with the mechanic what’s included with the inspection and request any additional checks if you want them.
An inspection you can do yourself is an online car history report. You just need to get the car’s Vehicle Identification Number (VIN). With the VIN in hand, you can find multiple websites that will offer a car history report for a small fee.
You may even find that the local state or territory transport department offers a car history report. Check that there are no outstanding loans on the car, it’s not stolen, or hasn’t been written off.
There are a few options to help you get the car to you. Buying a car in another state and driving it home may be the most cost-effective option. When considering this option, you need to factor in the fuel costs. If the car you’re purchasing is currently unregistered, you also need to get an unregistered vehicle permit for interstate travel so you can legally drive your car home.
Again, you could ask your friends or family to help you either by driving the vehicle themselves or by assisting you in collecting it. The other option for interstate car transfers is to pay for and organise transportation via large freight. This option may be a bit pricey, so make sure you do the research and pick the right option for you.
Getting the car freighted involves using a transportation company that will hire a freight truck for the vehicle’s delivery, similar to how car dealers transport cars around the country. The costs depend on the size of the car, distance, and how soon you need it delivered. It’s best to get multiple quotes from multiple companies and compare them to find an affordable option that suits your requirements.
If you’ve purchased the car from a dealer, you may want to ask can the dealership ship a car to another dealership interstate on your behalf. You’ll want to check if any additional charges will apply.
Once you take possession of the car, you need to organise the registration. The exact rules around registration will differ between states or territories, so check what’s required in your state or territory.
For instance, in NSW, you’re only required to get a roadworthy certificate if the car you’ve purchased is unregistered. If it’s registered, you can just transfer the registration. If you're buying a car interstate from NSW to Vic, you’ll need to get a roadworthy certificate issued within 30 days of when you change the registration.
In QLD, you’re required to get a roadworthy certificate even if the car has been previously registered, but it’s the previous owner's responsibility to get the certificate and give it to the new owner. While buying a second-hand car from another state, it’s your responsibility as the buyer to ensure all the requirements are met to get the registration transferred from the previous owner's name to yours.
In Australia, it’s a requirement to have compulsory third-party (CTP) insurance before you can register a motor vehicle. In NSW and QLD, you have to purchase this policy separately, whilst the CTP costs are included in the registration fees in other states and territories.
This insurance covers expenses related to injuries to third parties. You may also consider getting additional insurance such as third party property damage, third party fire and theft, or comprehensive insurance, which is the highest level of cover you could buy.
The more coverage you take out, the higher the premium costs; compare insurance quotes before making a decision. If your car is unique or vintage, you want to take out comprehensive car insurance to ensure it has the highest level of cover. But if your finances are tight, you might opt for a lower level.
This article was reviewed by Alex Ritchie before it was published as part of RateCity's Fact Check process.
