
Get exclusive student offers and guides
Straight to your inbox
Updated
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Buying a car is just the beginning, and the sticker price is only the beginning of the costs. Vehicle registration, mandatory CTP insurance, car damage insurance and more all add up to significant ongoing expenses.
This guide takes you through what you need to know and what you need to do in order to get on the road legally and efficiently. It also gives you a rundown on car loans if you’re looking for finance.
Before taking out a car loan, or any other kind of finance, you should know what your repayment ability is. Miscalculating this can be a very costly mistake. There’s no point in taking out a loan if you won’t be able to keep up with the payments. Other general rules of thumb include the following:
There are different kinds of car loans, but the following are some of the features you need to consider:
Different types of loan will often include set features. The actual rates you can get and whether you’re able to get an unsecured loan are determined on a case by case basis. If you’re a reliable borrower with a good credit score, you might be able to get lower rates and preferable options.
This is just the tip of the iceberg. A car loan is a big financial deal and it’s worth learning about it and comparing a range of options before committing.
Here are some of the terms you might want to know about and a detailed explanation to help compare loans more effectively.
If it’s your first car, there’s a good chance you’re buying used. It can be a lot cheaper, but also a bit riskier.
One of the main things to do is check the car’s history before buying. This tells you if there’s any outstanding finance owing on the vehicle, which you might well be responsible for, as well as the car’s previous service and accident history. If it’s previously been written off or otherwise involved in a serious accident but looks fine now, it’s possible that the repairs were more cosmetic than anything else.
Even if it looks fine, the car might not be able to pass a vehicle safety test. In this case, you’ll either need to fork out a lot more for serious repairs or face the prospect of having bought a car you’ll never be able to legally drive.
Giving your car an inspection before buying as well as a test drive is highly recommended. If you’re using financing to buy a used car, there are also a few differences to know about, such as limits on the age of the car you’re buying. If you’re eyeing a specific car to buy with a loan, you’ll need to make sure you can get financing that suits.
Jump ahead to your state:
All cars must have Compulsory Third Party (CTP) insurance, often known as a green slip. In NSW and the ACT, you must get a green slip before registration. In all other states, you are able to do it at the same time as vehicle registration.
CTP is an insurance policy that covers you, other drivers, any passengers and pedestrians. Basically, it covers anyone who you might injure with your vehicle or a trailer you’re towing. In the event of an accident, the at-fault driver’s CTP insurance will be the one that needs to pay out. For example, if another driver injures you, their CTP insurance will be the one that pays out.
CTP insurance does not cover any kind of property damage. If you are deemed to be at fault, you are not covered for any injuries except very severe ones, such as spinal cord damage or traumatic brain injury.
The procedure for getting CTP insurance, and your options, depends on your state.
Here, it’s a bit more complicated. There are two different types of CTP insurance available:
There are six different insurance providers which offer CTP insurance in NSW and the ACT. Fortunately, the standard cover offered by all of them is, for the most part, exactly the same, with the only difference being the price. Only three of these insurance providers offer the optional at-fault driver cover. The easiest way to get CTP insurance here is to do the following:
None of the insurers is consistently cheaper than another because they set prices in different ways. What’s cheapest for one person, depending on their age and the type of car they drive, might not be the cheapest for someone else.
In these states, you get CTP insurance at the same time as you register your vehicle, and the price is automatically included in registration and renewal costs.
You can get CTP insurance at the time of registration and switch providers when you renew your vehicle registration, or you can take out a policy directly from one of the four Queensland state CTP insurance providers. There may be differences in the cover and the price, and you will generally get the most value for money by comparing the four different insurers and picking a policy directly.
If you’d prefer a more hassle-free method, but without any guarantee of the lowest price or highest level of cover, simply get your CTP cover while registering your car.
If this is the first time you’re registering a vehicle in your name, you’ll need to go to a road services registry for your state to provide identification and get put in the system.
If you’re registering a car for the first time, you will need the following:
Once you have a license, CTP insurance and your vehicle is registered, you are able to legally drive. However, taking it on the road is still a major risk without additional insurance. Your car is still not insured for any damage, and you aren’t insured for any kind of third-party property damage at all. In other words, you will need to pay for any property damage you cause while driving, whether it’s thousands of dollars for scratching a BMW’s paint job or hundreds of thousands for running into a house.
You have the following options for additional car insurance:
There are a lot of different providers offering car insurance all around Australia, and costs vary widely between states. To find the right level of cover and the best value for cover, you can go around and get quotes from a wide range of different insurers, or you can use a comparison site to see a range of options in one place.
The number one tip for saving money on car insurance is to stay flexible. You can generally change car insurance providers without penalty at each policy renewal period (generally annually), so if you notice your premiums creeping upwards, check for discounts and see if you could save more by switching.
The no-claims bonus is one of the most significant ways of keeping premiums low. It works differently with different insurers, but generally this is a discount that builds over time when you don’t make claims. Often, when you switch providers, the new one will recognise the no-claims bonus you’ve built up with your previous insurer and will award you their equivalent-level discount.
You will need to pay the following fees:
The amounts vary based on the state and on the type of vehicle you have. It also depends on what costs you’ve already paid. All up, you might expect to pay (very) roughly $500, or significantly more for expensive (over $45,000 cars), heavier vehicles or for cars that are used for business.
In addition to the significant one-off expenses, like the first-time car registration costs and the cost of buying a car, many of the major expenses are ongoing. You probably don’t want to buy a car unless you know you’re able to keep up with the costs.
If you’ve gotten a car on finance, then the repayments will also make up a significant, and important, ongoing expense.
Today's best Finder Daily deals include: 50% off car essentials at Catch, half-price meat thermometers, eBay Plus tech sale.
From the best overall RC car to the best RC car for kids, these are the six best RC cars you can buy in Australia right now.
Here's how to get started if you want to turn your skills as an electrician into a business.
From qualifications to getting the right insurance in place, here’s our guide to starting your beautician business.
Compare hybrid car insurance quotes.
Find out how to switch from a fossil-fuel guzzler to an electric car.
Find out how students can benefit from income protection insurance.
Find out everything you need to know about baby and child car seat laws in Australia.
If you want a thoroughly practical electric car, the Hyundai IONIQ Electric is one of the most affordable and usable battery-powered models.