Do I need a car?
Whether or not you need a car upon arriving in Australia depends on your specific circumstances and the location where you'll be staying.
If you're planning to live in a major city like Sydney, Melbourne, Brisbane, or Perth, public transportation networks are well-developed and can be relied upon for daily commuting. These cities have extensive bus, train, and tram systems, as well as ride-sharing services like Uber and taxis. Therefore, owning a car may not be necessary if you live and work within the city.
We also recommend you consider your lifestyle and personal preferences when deciding whether to get a car. If you enjoy exploring the countryside, traveling to remote areas, or participating in outdoor activities, having a car may provide greater convenience and freedom. On the other hand, if you're content with urban living and prefer using public transportation, you may not need a car.
Evaluate your commuting needs: if you'll be working in an area with limited public transportation options or irregular schedules, having a car could be beneficial. It allows you to have greater control over your travel time and may save you from relying solely on public transit.
Owning a car comes with various expenses, such as purchase/lease costs, insurance, registration, maintenance, fuel, and parking. Assess your budget to determine if owning a car is financially feasible or how you may be able to higher-purchase it (see finance section below).
In addition to public transportation, Australia has well-established bike-sharing systems and walking-friendly cities. Depending on your location and proximity to amenities, walking or cycling might be sufficient for your daily needs.
How to buy a car in Australia
Once you know the type of car you wish to acquire, set your budget: this allows you to determie the amount you are willing to spend on purchasing a car. Consider not only the purchase price but also ongoing expenses like insurance, maintenance, fuel costs, and registration fees. You can then check online car marketplaces, classified ads, dealerships, or car auctions. Popular online platforms in Australia include Carsales, Gumtree, and Drive.
Do your due diligence
Once you find a car of interest, arrange for an inspection to ensure it is in good condition. Consider hiring a mechanic to perform a thorough inspection if you're not confident in assessing the vehicle yourself. After the inspection, take the car for a test drive to evaluate its performance and comfort. You should also obtain a comprehensive vehicle history report to check if the car has been stolen, written off, or has any outstanding financial obligations. In Australia, you can use services like the Personal Property Securities Register (PPSR) to perform a vehicle history check.
Can I negotiate the price?
If you're buying from a private seller, you can negotiate the price directly. When dealing with dealerships, you can also negotiate the price, additional features, or any warranties they offer. Research the market value of similar cars to strengthen your negotiation position.
You may also arrange insurance coverage for your new car. Compare insurance providers to find the best coverage and premiums for your needs.
Transfer of ownership and registration
Once you have agreed on the price and completed the necessary paperwork, you'll need to transfer the ownership of the vehicle. In Australia, you will need to complete a transfer of ownership form and submit it to the local transport authority. You'll also need to pay the registration fees and sometimes obtain new license plates.
How to obtain vehicle finance in Australia as a migrant
It is possible for migrants to obtain vehicle finance in Australia, provided they meet certain eligibility criteria set by the lender. Here are some things to consider when applying for vehicle finance as a migrant:
- Visa status: The type of visa you hold may impact your ability to obtain vehicle finance. For example, if you're on a temporary visa, such as a student visa or a working holiday visa, you may have limited options for vehicle finance.
- Employment status: Most lenders require borrowers to have a steady income source, such as full-time or part-time employment. If you're a migrant who has recently arrived in Australia, you may not have a job yet, which could impact your eligibility for vehicle finance.
- Credit history: Lenders in Australia typically review the credit history of borrowers to assess their ability to repay the loan. If you're a new migrant, you may not have an established credit history in Australia, which could impact your eligibility for vehicle finance.
- Down payment: Many lenders require borrowers to make a down payment towards the vehicle purchase. As a new migrant, you may not have a large savings buffer to make a significant down payment, which could impact your ability to obtain vehicle finance.
- Lender policies: Different lenders may have different policies when it comes to lending to migrants. Some lenders may have more lenient eligibility criteria for migrants, while others may require more stringent requirements.
To improve your chances of obtaining vehicle finance as a migrant, consider working on building a good credit history by paying bills on time and establishing a steady income source. You can also shop around for lenders who have more flexible eligibility criteria for migrants. Finally, consider working with a finance broker who can assist you in finding suitable lenders and navigating the application process.
