Can I Buy a Car at 16?

Buying your first car is one of the most exciting days of our lives. In Australia, we are lucky that we can gain our provisional learners licence at just 16 years of age. But that brings us to the question, Can I buy a car at age 16 in Australia?

Shop for Cars has put together a quick guide on whether or not you can buy a car at age 16, and the options available to you.

Let’s get started!

Can I get a Buy a Car Loan at age 16?

Yes you absolutely can. If you have enough money to buy a car outright you can absolutely get a car at age 16.

Here comes the tricky part. You will need the assistance of your parents or a guardian to buy a car. When you buy a car you will need to sign legal documents, all of which need to be completed by someone over the age of 18.

On the money side, it is important to know that it is illegal for a bank to lend money to someone under the age of 18 years of age to buy a car.

How to buy a Car at age 16?

Before you think about buying a car in Australia at age 16, there are a few things that you need to know and consider:

Understand Legal Age Requirements in Australia

In Australia, you need to be at least the age of 18 to drive and own a car independently. I know what you might be thinking, this means it’s virtually impossible for 16 year old's to buy a car. Not so. What many 16 year old's do in Australia is get a parent or guardian to buy the car and keep the ownership in their name until you turn 18 and become legally able to own and drive a car independently. Of course this is all on the proviso that you hold your P1 provisional licence.

Learner's Permit

The first step to buying your own car is getting your learners permit. In Australia you can get your learners permit as soon as you turn 16 years of age. A learners permit allows you to learn how to drive with the company of an experienced driver.

Many families invest in a car for their children to learn in and pass it down to when they complete the required learning hours and move onto a provisional licence. This is the best way to get your own car at the age of 16 in Australia.

Parental Involvement and Co-Ownership

Unfortunately you are not able to legally own a car outright on your own at age 16. The most popular and best way to buy a car at age 16 is through parental involvement and co-ownership.

Although the legal age for signing Australian registration and ownership documents is 18, your parents can assist in buying the car on their behalf. This cooperative ownership model allows for a shared responsibility, making car ownership a family affair.

Understanding State-Specific Laws

In Australia, Driving and ownership laws can differ from state to state. Before you begin planning and looking for cars to buy, it is important that you research and visit your local state RMS website to understand what the legalities in your state are.

Some states may have additional requirements or restrictions for drivers that are under the age of 18. It’s important to understand this before you begin investing money into a car.

Financial Considerations

For most people, to buy a car you need access to car finance or a car loan. Unfortunately if you are looking to buy a car at the age of 16, banks and financial lenders are unable to lend to applicants under the age of 18 anywhere in Australia.

If you want to buy a car at age 16 in Australia you will have two options. You or your family can pay the full amount in cash or your parents can apply for a personal loan to buy a car if they do not have the full amount of money.

Ongoing Costs

Beyond the upfront purchase price there are many ongoing costs that you need to consider before you think of buying a car at the age of 16. You need to consider fuel and maintenance costs, insurance costs, registration costs and green slip costs. These costs can add up and if not understood before purchase can set you back and put you into financial strain.

Final Word,

While the legal age for owning a car independently in Australia is 18, 16 year olds have many avenues available to get their own car. The few steps presented in this article are a few proven ways you can get your hands on a car at age 16 in Australia in 2023.

We hope you enjoyed reading this article. To read more articles like this, please visit the Shop for Cars latest news page here.

About Shop for Cars,

Shop for Cars is Australia’s first car dealership-only online classified. Shop for Cars brings you the best quality new and used vehicles from trusted motor dealers Australia wide. Shop for Cars currently has over 12,500 cars listed for sale all from licensed Motor Vehicle Dealers ONLY.

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DISCLAIMER: This is all based on opinion and does not consist of legal or professional advice. Please research and consult with all relevant parties prior to making a buying decision.