Important Considerations When Acquiring a New Vehicle

Purchasing a car is a fulfilling act that offers you a chance to travel comfortably and in an unrestricted manner. Before using a newly purchased car on the roads, there are a few requirements that owners should fulfil. Some of the requirements may differ from state to state and among them are:


Third party insurance unlimitedly covers fatalities or injuries to persons other than the owner of the car as a result of the vehicle owner's negligence is compulsory. The cost of insurance could either be factored into the cost of the car, or in some states, such as New South Wales, buyers are required to separately acquire the insurance policy. A comprehensive insurance policy, which is more expensive, can be taken and will cover damage caused to your vehicle as well as damage caused to other people's property should you get involved in an accident. The cost of insurance is calculated by the risk factor of the driver, and younger drivers who are considered to be more reckless are charged higher premiums. Insurance should be renewed annually.

Roadworthy Certificate

Cars, motorcycles and trailers are amongst the vehicles requiring this document, which is issued when a vehicle is sold, being re-registered or being cleared for a motor vehicle defect. The document can only be issued by a licensed vehicle tester, and the cost may vary from one provider to the other, depending on the age and state of the vehicle. Vehicles that are not designed for carrying passengers or goods or for highway use such as combine harvesters, bulldozers and excavators are not subject to this requirement.

The document helps to reduce the number of poorly maintained vehicles, which greatly contribute to pollution and accidents, on the road. When registering or transferring ownership of a vehicle, the certificate should not be more than thirty days older than the application requesting to transfer or register the vehicle. In some states, such as Western Australia, vehicles that have already been registered do not require vehicle inspection to prove roadworthiness when being brought in from other states. If a vehicle does not meet the basic requirement it will be issued a rejection report and given seven days to have repairs done after which a full inspection will be required. Some of the vehicle parts and components tested include:

  • Wheels and tyres
  • Brakes
  • Seats
  • Body rust
  • Windscreen and windows
  • Vehicle suspension
  • Lights and reflectors
  • Seatbelts

In some states, inspection is required annually for a car roadworthy certificate.

Other Considerations

Other important factors to consider include registration of license plates, which are also renewed annually, and motor vehicle tax. Payment of stamp duty, which is a one off payment when registering the vehicle, proves that the registered vehicle has complied with all tax requirements.