Buying a vehicle

Introduction

If you’re buying a vehicle, such as a car, motorcycle or trailer, this is what you need to know before and after your purchase.

Buying a brand new vehicle

Before you buy

Before you buy a brand new vehicle, you should:  

• Research the vehicle's market value to help negotiate the best possible price.
• Check on-road and operating costs, such as registration, compulsory third party (CTP) personal injury insurance, stamp duty and servicing and spare part costs.
  • Note: Trailers do not require CTP insurance and some trailers are exempt from stamp duty.
• Compare vehicle safety and fuel efficiency.
• Compare vehicles' emission star ratings.
• Check prohibited vehicles for provisional P1 and P2 drivers (if applicable) to ensure you’re allowed to drive the vehicle you want to buy.
• Test drive the vehicle.
• Get an independent vehicle inspection and safety assessment.
• Check the motor dealer has a valid licence (if you’re buying from a dealership).
• Avoid buying a vehicle that you’ve not seen or cannot confirm exists.

After you buy

After you buy a brand new vehicle, you should:

• Ask the motor dealer if they organised the vehicle registration. Most motor dealers will complete this step for you, but if they have not, refer to Register a brand new vehicle.
• Consider getting third party property insurance or comprehensive insurance for further coverage.
• Manage your number plates (if applicable) by:
  • exchanging existing plates between vehicles
  • transferring number plates
  • ordering custom or personalised plates.
• Open an e-toll or toll pass account, if you don’t already have one. Or update your existing account(s). For more information, refer to Tolls.

Buying a second-hand vehicle

Before you buy

Before you buy a second-hand vehicle, you should:  

• Research the vehicle's market value to help negotiate the best possible price.
• Check on-road and operating costs, such as registration, compulsory third party (CTP) insurance, stamp duty and servicing and spare part costs.
• Compare vehicle safety and fuel efficiency.
• Compare vehicles' emission star ratings.
• Check prohibited vehicles for provisional P1 and P2 drivers (if applicable) to ensure you’re allowed to drive the vehicle you want to buy.
• Test drive the vehicle.
• Check the motor dealer has a valid licence (if you’re buying from a dealership).
• Search the Personal Property Securities Register for any outstanding loans, debts, finance owing, and other security interests related to the vehicle.
• Check if the vehicle has any known safety issues and the date of the last safety inspection report (pink slip) by asking the seller.
• Get an independent vehicle inspection and safety assessment.
• Conduct a free vehicle registration check that includes the:
  • registration expiry date, status, restrictions or concessions
  • compulsory third party (CTP) insurer and policy expiry date
  • past 3 odometer readings (if applicable). 
• Consider ordering a vehicle history report (fees apply) that includes information on stolen vehicles, number plates or engines, written-off vehicles, number of registered operators and first registration date.
• Avoid buying a vehicle that you’ve not seen or cannot confirm exists.

After you buy

After you buy a second-hand vehicle, you should follow these steps:

1. Get proof of purchase from the seller, such as: 
   • 'Part B Registration transfer details' on the back of the physical (paper) Certificate of Registration, or 
   • a receipt or invoice with no alterations which includes the:
     • vehicle’s details (plate number, VIN/chassis number, engine number, colour, make and model)
     • date and time of sale 
     • name, address and signature of both the buyer and seller. 
2. Transfer the vehicle registration within 14 days of the purchase date to avoid a late transfer fee. Before you can complete the transfer online, the seller first needs to complete a Notice of Disposal (NOD). Alternatively, you can visit a Service NSW Centre with proof of purchase to transfer the vehicle registration in person.
   • Note: As part of the transfer, you’ll need to pay a transfer fee, stamp duty fee (some exceptions apply) and motor vehicle tax (if applicable). You can check motor vehicle stamp duty fees and use the vehicle registration calculator to get an estimate of the costs. 
3. Check that the vehicle has a current compulsory third party (CTP) insurance (green slip). When you buy a vehicle that has a current NSW registration, the green slip will automatically transfer to you, unless it is expired or the seller has cancelled it and requested a refund.
   • Note: If you need to get CTP insurance (green slip) you can use the Green Slip Price Check to compare insurance provider quotes.
4. Consider getting third party property insurance or comprehensive insurance for further coverage. If you already have insurance, make sure to inform your insurance provider.
5. Manage your number plates (if applicable) by:
   • exchanging existing plates between vehicles
   • transferring number plates
   • ordering custom or personalised plates.
6. Open an e-toll or toll pass account if you don’t already have one. Or update your existing account(s). For more information, refer to Tolls.

Buying a vehicle with an expired, cancelled or suspended registration

There are additional considerations if the vehicle you purchased or intend to buy has an expired, cancelled or suspended registration.

Registration expired less than 3 months ago

After you complete the vehicle registration transfer, you’ll need to renew the vehicle registration as soon as possible. You cannot drive a vehicle with an expired registration. Heavy fines apply.

As part of the registration, you'll need compulsory third party (CTP) insurance (green slip) and a safety inspection report (pink slip), if applicable.

Note: a safety inspection report (pink slip) for light vehicles is only valid for 6 months from the date of issue. It must be used to renew a registration within those 6 months.

Registration expired more than 3 months ago (cancelled registration)

If a vehicle registration has been expired for more than 3 months, it will be automatically cancelled. If you purchased a vehicle with cancelled registration, you’ll need to re-register the vehicle and get:

• compulsory third party (CTP) insurance
  • Note: Trailers do not require CTP insurance. 
• an Authorised Unregistered Vehicle Inspection Scheme report (blue slip) to verify that an unregistered vehicle is safe, and it meets design and identity standards.

Suspended registration

You’ll need to visit a service centre to transfer and register the vehicle.

Transferring a vehicle

When a NSW-registered vehicle changes ownership, Transport for NSW needs to update its records. To do this, it requires:

1. The seller to lodge a Notice of Disposal (NOD) of the vehicle.
2. The buyer to transfer the vehicle's registration into their name. 

If you're transferring the ownership of a vehicle, for example to a spouse or family member, you can do this online. However, in some circumstances, you'll need to visit a service centre. Other considerations may apply.

For more information, see Transferring a vehicle.

Related information

• Buying a new vehicle
• Buying a used vehicle
• Car insurance for young drivers
• Buying a car: understand the costs, compare car loans – ASIC
• Find a used vehicle's market value
• ASIC's MoneySmart Cars app
• Used car safety ratings – Centre for Road Safety
• Transferring a vehicle