How Much Does it Cost to Buy Used Cars in Australia?

Thinking of buying a used car in Australia? Not only do you have to think about the cost of the vehicle itself, but you also need to carefully consider the additional costs involved in its day to day running and maintenance. In this guide, we will look at how much it costs to buy used cars in Australia.

Cost of the Car

The cost of the car will depend on a number of factors including the age, model and condition of the vehicle. Cars can go as low as a few thousands for older models to several thousands for newer models. It pays to set aside a specific budget before you shop around for cars, so you know what you can afford and what to look for within your price range.

Car Finance

Car History Report

Costing about $36 per report, it is well worth it when you consider the valuable information a car history report is able to provide when you buy used cars. A car history report provides information on the mileage, stolen status, finance status, maintenance and more on a car. Armed with these additional details, you can make a more informed decision whether to go ahead with buying a used car or not.

Car Registration

The cost of registering your car every year will depend on which Australian state you live in because every state has its own calculations. For example, the costs of registration in NSW usually includes the registration fee, vehicle tax, inspection fee and number plate fee. The tax for a vehicle is calculated on its weight.

Get more details about registration in your state here: Queensland, Tasmania, Victoria, Northern Territory, Australian Capital Territory, South Australia and Western Australia.

Stamp Duty

Stamp duty is another cost that car buyers will come across in order to buy used cars in Australia. This is due to the government when you purchase a vehicle. The cost will depend on the state you live in and the cost of the vehicle. Bear in mind this cost when you have your next vehicle purchase on the cards.


The cost of insurance will depend on factors like the cost of your vehicle, where you live, the kind of cover you want and even your safety record as a driver. As a rule of thumb, older drivers with clean driving records tend to pay lower premiums than younger drivers or drivers who have a history of offences. For example, according to Canstar, a female driver under 25 in NSW will likely pay an average premium of $2,254 compared to a person over 50 whose premium averages about $991.

The best way to save on the cost of car insurance is to shop around and avoid renewing with the same company without checking for a better deal elsewhere. You can also choose to pay a higher excess to lower your insurance premiums, but you will have to keep this contingency fund aside in case you need to make a claim. You can even get a discount by offering to pay your annual premium in full instead of rolling it over every month. Additional safety features in your vehicle can also help to reduce your insurance costs in some cases.


The cost of re-fuelling your car will depend on how often and how much you drive it. For example, if you are just doing small runs in your neighbourhood, then you may likely need to fill up a full tank once every two to three weeks. But if you need to drive an hour up and down to and from work everyday, then chances are you need to fill up your tank once a week, which will increase your monthly fuel budget.

Sell My Car

Car Servicing and Mechanical Expenses

This will depend on the age and condition of the vehicle when you buy it. A typical car service costs between $150 and $550 and includes items like filter changes, fluid replacement and engine checks. The cost to service your car will depend on the make and model because some cars may need special parts, engine oils and transmission fluids and may also have specifications about the servicing process. Car repair will depend on the issue and again will vary based on the make, model and repair needed.

As you can see, there are a number of expenses to consider before you buy used cars in Australia. Take the time to consider if these can fit into your overall budget before taking the plunge.

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DISCLAIMER: This is all based on opinion please research and consult with all relevant parties to make the best buying decision