The Ultimate Guide to Buying Your First Car in Australia (P-Plate Edition)

Quick answer, what should my first car be?

For most P-platers, the best first car is a small hatch or small sedan with a clean history, strong safety rating, and cheap parts. Think models like a Corolla, Mazda 3, i30, Civic, or Lancer in a stock setup, with a full service history and no sketchy modifications.

Then confirm two things before you get attached: it is P-plate legal in your state, and it passes the paperwork checks (especially PPSR).

Step 1, set a real budget (purchase price is only the start)

A good first-car budget has three layers:

• Upfront: car price, stamp duty, transfer fees, any roadworthy or safety certificate costs, first service, tyres, rego top-up.
• Running costs: fuel, insurance, rego, servicing, tyres, brakes, tolls, parking.
• Emergency buffer: at least $1,000 to $2,000 if you can, because first cars love surprises.

Practical example budget (used hatch, paid upfront)

Let’s say you buy a $9,000 used hatch. A realistic plan might look like:

• $9,000 purchase
• $300 to $800 transfer and stamp duty (varies by state and vehicle value)
• $300 to $600 immediate service and fluids (more if it is overdue)
• $600 to $1,200 tyres or brakes if worn
• $1,000+ insurance deposit or first month (depends on cover and excess)

If you only saved exactly $9,000, you are already under pressure.

Step 2, know your P-plate rules before you shop (the “legal” filter)

P-plate rules vary by state and can affect which cars you can drive, how fast you can drive, who you can carry, and whether you can touch your phone at all. If you get this wrong, the real-world consequences are not just a fine. It can mean demerit points, licence suspension, an insurance claim fight, and being stuck paying for a car you cannot legally drive.

State-by-state snapshot (always verify on your state authority site)

New South Wales (NSW)

• Speed limits: P1 is capped at 90 km/h, P2 is capped at 100 km/h.
• Phones: P1 and P2 must not use a mobile phone for any function, including hands-free, loudspeaker, and navigation.
• High performance vehicles: P1 and P2 cannot drive “prohibited” (high performance) vehicles, commonly assessed by power-to-tare ratio and other criteria.
• Passenger limits: P1 drivers under 25 have a late-night passenger restriction (with exemptions).

Check official rules and tools here: NSW P1 conditions, NSW prohibited vehicles, NSW vehicle search tool.

Victoria (VIC)

• Zero BAC: learner and probationary drivers must be at 0.00.
• Phones: probationary drivers cannot operate portable devices while driving, including for calls and navigation.
• Peer passengers (P1): P1 drivers have a peer passenger restriction (with listed exceptions).
• Prohibited vehicles: probationary drivers cannot drive “banned” vehicles, or vehicles over a power-to-mass ratio threshold, or performance-modified engines (with specific exemptions available).

Check official rules and databases here: VIC learner and probationary rules, VIC vehicles for probationary drivers.

Queensland (QLD)

• High-powered vehicle restrictions: apply to provisional drivers (check your licence type and age conditions).
• Passenger and night restrictions: apply for P1 (with specific conditions and exemptions).
• Mobile phones: restrictions are stricter for learners and P1, and can differ from open licence rules, check the current QLD rules carefully.

Start here: QLD provisional licence restrictions.

South Australia (SA)

• Under 25 P1: night driving and passenger limits apply, with exemptions.
• Phones: P1 drivers must not use any mobile phone function while driving (with narrow practical exceptions explained by SA).
• Speed: P1 must not exceed 100 km/h even if the road limit is higher.
• High-powered vehicles: restrictions apply for provisional drivers under 25 unless exempt.

Official details: SA P1 provisional licence, SA high-powered vehicles.

Western Australia (WA)

• Night restriction: for the first 6 months on P plates, you must not drive between midnight and 5:00am unless an exception applies.
• Passenger restriction (red P): one passenger at all times on red P plates, with specific exemptions.
• Zero BAC: 0.00 applies.

Official details: WA driving on your P plates.

Tasmania (TAS)

• Speed: P1 capped at 100 km/h even if the limit is higher.
• Zero BAC: 0.00 applies.
• Phones: no mobile phone use on P1.
• Peer passenger restrictions: apply to P1.

Official details: TAS P1 restrictions.

Australian Capital Territory (ACT)

• Phones: no mobile device use, including hands-free and loudspeaker, while driving or stopped but not parked.
• Alcohol: must not have alcohol or drugs in your system while driving.
• P1 late-night peer passenger restriction: only one passenger aged 16 to 22 from 11pm to 5am, with exemptions.

Official details: ACT learner and provisional driver safety.

Northern Territory (NT)

• Speed and alcohol rules: NT has specific novice driver rules, including alcohol limits and speed requirements for some licence stages.
• Phone rules: NT has explicit restrictions in legislation for learner and provisional drivers.

Start here: NT learner and provisional licences.

Tip: If you are shopping nationally (Facebook Marketplace, Gumtree, interstate dealers), filter your cars by your state’s rules first. It saves hours and prevents buying something you cannot drive.

Step 3, pick the right type of first car (what matters most)

1) Safety features you should prioritise

Faster is not safer. A “fun” first car is one that helps you avoid crashes and reduces injury if something goes wrong.

• ESC (electronic stability control)
• Multiple airbags (front, side, curtain)
• AEB (autonomous emergency braking) if you can afford it
• Good tyres, because the best safety system is still the contact patch

Use independent safety ratings where possible. ANCAP is a good starting point: ANCAP safety ratings.

2) Reliability and parts cost

Your first car will teach you about maintenance, often the hard way. Choose a model with:

• a strong reputation for reliability
• easy access to parts (common models win here)
• good service history, ideally with receipts

3) Manual vs auto (be honest about your commute)

Manual can be fun and build skill, but stop-start traffic is a different lifestyle. If your daily drive is heavy traffic, an auto can reduce fatigue and distraction, which matters more than bragging rights.

Step 4, where to buy (and how your rights change)

Buying from a dealer

Pros: usually more legal protection, clearer paperwork, finance options. Cons: higher prices, upsells, and you still must do checks.

Consumer guarantees and used car rights vary depending on the sale type and what was promised. A dealer cannot just “contract out” of Australian Consumer Law responsibilities.

Good starting point: ACCC, buying a used car.

Buying privately (Marketplace, Gumtree, mates)

Pros: cheaper, more choice. Cons: higher scam risk and fewer protections. Private sellers can disappear the moment money changes hands.

If you buy privately, the PPSR check is non-negotiable.

Auctions

Auctions can be tempting, but you often get limited time to inspect and limited comeback if something is wrong. Unless you know what you are doing, auctions are not the best first-car environment.

Step 5, do the checks that prevent the biggest first-car disasters

The PPSR check (do this before you pay)

A PPSR search can help you check if the car has money owing, and may also show if it is recorded as stolen or written off. It is cheap and takes minutes.

Official PPSR info and search portal: PPSR used vehicle search.

Real-world consequence: If you buy a car with an active security interest, it can be repossessed even though you paid the seller. That is a brutal first-car lesson.

Registration and identity match

• Match the VIN on the car to the papers and seller details.
• Be wary of “lost licence”, “selling for a friend”, or “can’t meet at home” stories.
• Never pay a deposit to “hold it” without seeing the car and confirming identity.

Inspection checklist (what to look for on a used car)

• Service history: intervals, receipts, major items (timing belt or chain work, transmission servicing, cooling system).
• Tyres: uneven wear can signal suspension issues or poor alignment.
• Brakes: shudder under braking can suggest warped rotors.
• Leaks: oil, coolant, ATF stains, and power steering leaks.
• Cold start: ask to start it cold, listen for rattles, smoke, rough idle.
• Test drive: straight-line braking, steering tracking, transmission shifts, engine temperature stability.

If you are not confident, pay for a pre-purchase inspection. A $200 to $400 inspection can save you thousands.

Step 6, understand insurance (and why mods can backfire)

Three common cover types:

• CTP: compulsory, injury liability scheme linked to registration, the structure varies by state.
• Third Party Property: covers damage you cause to other people’s cars and property.
• Comprehensive: includes your car (subject to policy limits and excess).

P-plater reality: premium and excess can be high. That is normal. Manage it by choosing a common, low-risk car and keeping it stock.

CTP basics (state differences)

• NSW: CTP is commonly purchased as a “Green Slip” through licensed insurers.
• VIC: TAC charge is part of registration charges.
• QLD: CTP premiums are collected with registration.

Official starting points: NSW Green Slip info (SIRA), VIC TAC charge, QLD rego costs (includes CTP premiums).

Modifications and insurance

Two risks hit at once:

• Legal: your state may treat performance mods as prohibited for P-platers.
• Insurance: undeclared modifications can cause claim disputes or policy cancellation.

If you want a project car, plan it for after your full licence, or keep it strictly legal, fully declared, and engineered where required.

Step 7, avoid finance traps (if you need a loan)

If you must finance, focus on total cost, not the weekly number. Watch for:

• Long terms that keep you paying after the car has aged and depreciated.
• Balloon payments that create a nasty end-of-loan surprise.
• Add-ons that get rolled into the loan (warranties, paint protection, tyre and rim cover).

Good general guidance: MoneySmart, buying a car and loans.

Step 8, the “handover” checklist (what to do on the day you buy)

1. Run the PPSR check the same day (or day before).
2. Confirm VIN matches the car and paperwork.
3. Get a written receipt with seller name, address, licence details, sale price, VIN, rego, date.
4. Take photos of the car, odometer, and VIN plate.
5. Do the transfer paperwork exactly as your state requires.
6. Insure it before you drive it home (at least third party property damage).

Step 9, first-month ownership, how to stay out of trouble

• Sort maintenance early: do a baseline service so you know where you stand.
• Keep distractions down: phone rules for P-platers are strict in many states, and enforcement is real.
• Drive within your limits: night driving, passengers, and unfamiliar roads are where new drivers get caught out.
• Keep it stock: avoid “mods first, tyres later” thinking, tyres and brakes matter first.

FAQ, Buying your first car in Australia (P-Plate Edition)

What is the best first car for P platers in Australia?

A small hatch or sedan with strong safety features, cheap parts, and a clean history. Prioritise reliability and safety over performance, especially because many states restrict high-powered vehicles for P-platers.

How do I check if a car is P-plate legal in my state?

Use your state road authority’s prohibited vehicle checker or database. NSW and VIC have official tools, and other states publish restriction rules. Always check using the exact model, badge, year, and engine, not just the brand name.

Do I really need a PPSR check?

Yes, especially for private sales. A PPSR search can show if the car is listed with a security interest (money owing), and may also show stolen or written-off status.

Is buying privately cheaper than buying from a dealer?

Often yes, but risk is higher. Dealers usually come with clearer paperwork and consumer protections. Private sales can be fine if you do the checks and keep the transaction clean and documented.

Does rego include insurance?

It includes compulsory injury cover (CTP style cover), but the structure depends on the state. It does not replace third party property or comprehensive insurance.

What are the most common first-car mistakes?

Buying a car you cannot legally drive on your Ps, skipping the PPSR check, underbudgeting for insurance and tyres, buying a modified car, and signing finance based on the weekly payment instead of total cost.

Should I buy a “sporty” car as my first car?

Only if it is legal for your licence, affordable to insure, and in good condition. The practical downside is higher insurance, higher risk for defects and fines if modified, and more expensive consumables (tyres, brakes).