Whether you have outgrown your zippy hatchback and are upgrading to a more spacious family SUV, have decided to make the switch to an electric vehicle, or your family is simply looking to part ways with a second vehicle that spends more time in the driveway than on the road, there are plenty of reasons why you might be thinking about selling a car.
And you’re not alone. More than 2.3million second hand cars traded hands in Australia in 2025 alone.1
But what’s actually involved in selling a car in Australia? What’s the difference between selling one privately or selling it to a dealer? What happens to your car insurance or if you still owe money on the car you want to sell? And is there different paperwork and procedures involved depending on which state or territory you live in?
To answer all of those questions and more, we’ve put together this guide about what to do when selling a car in Australia.
What’s involved with selling a car in Australia?
The nitty-gritty detail that’s involved when you’re selling a car can depend on where you live in Australia, but there are some decisions and steps to take that may apply to anyone who’s considering selling a second hand car.
1. Decide how you’ll sell the car
When you’re selling a used car, there are typically two options – selling your car privately or to a motor dealership,2 for example, as a trade-in towards the purchase of another vehicle.3,4 There are benefits and potential costs involved with each option:2
- Selling privately – This can be time-consuming and there may be more paperwork that you need to take care of, but you’ll often get the best price for your second hand car by selling it yourself.3,5
- Selling to a dealer – This can be the easiest and quickest way to sell your car, as you won’t have to advertise it and the dealer will often manage the paperwork for you.3,4 However, you won’t usually get as much money for the car as you would if you’d sold it privately.3
2. Organise some key items, documents and paperwork
What you do and don’t need to gather may differ slightly depending on your location – we’ll go into more detail about that, state by state, below – but some things to consider organising typically include:
- Proof of ownership documents – Gathering items such as a copy of the vehicle’s registration certificate, details of your Compulsory Third Party (CTP) insurance and your photo identification can prove to a buyer that you’re the person responsible for selling the vehicle they’re interested in.2
- A bill of sale – Both Service NSW and VicRoads suggest organising a receipt or invoice to provide a buyer with once they’ve bought the car, as proof of the sale.2,6 This document should contain details such as the following:2
- Vehicle’s details including its make and model, plate number, engine and chassis number, and colour.
- Date and time of the sale
- Name, address and signature of both you and the buyer – or, if you sold to a dealership, the motor dealer’s licence number and registered business name.2
Also, if your car has personalised or custom licence plates, you’ll need to decide what to do with them. You can either leave them on the car when you sell it,7 which will transfer the right to display them to the car’s new owner,8 or remove and keep them to use on another vehicle.7
If you do want to keep them, you’ll need to notify your relevant state transport department and get a new set of number plates to put on the car before you sell it:7
- In the Australian Capital Territory – Access Canberra
- In New South Wales – Service NSW
- In the Northern Territory – Motor Vehicle Registry
- In Queensland – Department of Transport and Main Roads
- In South Australia – Service SA
- In Tasmania – Service Tasmania
- In Victoria – VicRoads
- In Western Australia – Transport WA
3. Contact your finance provider
If you owe money on your car, it’s still possible to sell the car privately or trade it in to a car dealership; however, you’ll likely need to let your lender know about your plans.9
In some cases, you may even need your lender’s permission to sell the car, for example, if your car is acting as security for the loan.9
According to Consumer Protection Western Australia, your lender:10
- Will probably request the balance of the loan to be paid from the sale of the car
- May require you to make an early repayment or break-free charge when you’re paying off the balance.10
Because purchasing a car that has money owing on it poses a risk for buyers, it’s also important to let a buyer know of any finance owing on the car before a sale,10 bearing in mind that they may find out anyway if they run a pre-purchase car history check.11
4. Don’t hand over the keys until you’ve been paid
Consumer Affairs Victoria recommends not signing anything that transfers your car’s ownership until you’ve received payment for the vehicle – or a dealer has provided a trade.12
Meanwhile, Consumer Protection Western Australia warns car owners who are selling their cars privately of scammers who may fake payments or promise to pay you after the car’s in their possession.10
When you are selling a used car privately, a buyer could use one of a few different methods to pay for it, such as:13
- Bank transfer – This involves meeting physically at a branch of the bank the buyer banks with, where they’ll withdraw the money in cash to give to you. Alternatively, if you both use the same bank, when you meet a buyer at a branch, a teller could transfer the funds from the buyer’s account into yours.
- Bank cheque – This essentially withdraws the money from the buyer’s account, so it’s ready to be transferred into yours once you deposit the cheque.
- Online transfer – While this might seem like the simplest option, it can sometimes take a few days for electronic funds transfers to actually land in your account, or the buyer might not be able to transfer all of the money all at once.13
While receiving payment via an online transfer may be suitable if you’re selling a second hand car where the buyer can make a single transaction with an immediate transfer of funds, for more expensive vehicles, Australian vehicle trading platform carsales suggests a bank transfer or bank cheque may be more appropriate.13
5. Let your insurer know you’ve sold the car
If you have a Comprehensive, Third Party Fire & Theft or Third Party Property Only insurance policy for your car, once the sale is finalised and you’ve taken care of the relevant disposal or transfer notification steps in your state or territory, it’s time to contact your insurer.14
You should be able to:14
- Cancel your policy – Most insurers allow you to do this by phone or via an online portal.
- Receive a refund – If you paid your premium as an annual lump sum and you’re cancelling the policy before it expires, you may be entitled to a partial refund for the unused portion of your cover.14
You won’t usually need to worry about informing your CTP insurer. As the only mandatory type of car insurance in Australia, CTP covers injuries to people caused by car accidents,15 and the policy is attached to the vehicle itself.16
Depending on where you live in Australia, a caveat to this may be if you sell your car to an interstate buyer. If the transport authority in your state or territory allows you to cancel the car’s registration before selling it to someone from a different state, you may be eligible for a partial refund of the CTP insurance.17,18
How to sell a car privately state by state
While some of the steps involved with selling a used car yourself, such as estimating its market value so you can choose a realistic selling price and preparing to sell a car online, are likely to be the same wherever you live, other steps can be quite different.
For example, in Queensland you’ll need a current inspection certificate to sell a car,19 while in WA, private sellers aren’t legally required to organise a roadworthiness check for a car they’re selling.10
Here’s what to do when selling a car privately in different Australian states and territories.
How to sell a car in the ACT
Roadworthy certificate: If you’re selling a car that’s over six years old, you’ll need to get a Certificate of Inspection, which is issued after your car’s had a roadworthy inspection.20 You can book a roadworthy inspection at any authorised inspection station.
Key paperwork: You and the person buying your car will need to fill out the forms on the back of your current car registration certificate. These include:21
- Application to transfer vehicle registration – The buyer takes this to present when they transfer the car’s registration.
- Notice of disposal – Keep this so you can notify Access Canberra of the sale, either online, by mail or in person.21
If you’re selling to an interstate buyer: No additional requirements – it’s up to the buyer to contact the transport authority in their state or territory to find out what they need to do.21
For more information: Selling an ACT registered vehicle
How to sell a car in NSW
Roadworthy certificate: Not required when you’re selling a car in NSW.22
Key paperwork: As the seller, you’re responsible for submitting a notice of disposal to inform Transport for NSW that you’re no longer the registered operator of the vehicle.23 You’ll need to:
- Provide some key details – These include the car’s registration details, your NSW driver’s licence details and the buyer’s NSW driver’s licence details.23
- Lodge the notice within 14 days of the car’s sale3 – However, it’s a good idea to submit it online immediately after you sell the vehicle so you can’t be held responsible for any future parking or driving fines or offences.23
If you’re selling to an interstate buyer: While you’ll need to submit a paper notice of disposal form if you’re selling to someone interstate,23 organising the car to be transferred to another state’s registration is the buyer’s responsibility.24
For more information: Selling a used car
How to sell a car in the NT
Roadworthy certificate: If the car you’re selling is seven years or older, you may need to organise a roadworthy inspection. As of February 2026, this is now a requirement when a car’s ownership is being transferred, which can be completed by either the seller or the buyer.25
Key paperwork: You’ll need to:
- Submit a notice of disposal to the Motor Vehicle Registry – This must be done within 14 days of selling a second hand car, and a few different forms of notice are acceptable, including if both you and the buyer fill out an official Notice of Disposal form.26
- Supply the new owner with proof of ownership26 – This could be a copy of the notice of disposal, a letter or receipt issued by you, or your most recent registration certificate for the car.27
If you’re selling to an interstate buyer: Organising the car to be transferred to another state’s registration is the buyer’s responsibility.24
For more information: Buying and selling a used vehicle
How to sell a car in Qld
Roadworthy certificate: You’ll usually need to have a current inspection certificate when you’re selling a car in Qld.19 This is a safety certificate that’s issued by an approved inspection station.19
Key paperwork: You’ll need to:
- Provide the buyer with their copy of the inspection certificate – The car’s new owner won’t be able to transfer the vehicle’s registration without it.19
- Complete a Vehicle Registration Transfer Application19 – There are sections of the form that both you and the buyer need to fill out and keep.28
If you’re selling to an interstate buyer: While an interstate buyer may ask you to cancel the car’s registration at a transport and motoring customer service centre so that they can apply for an unregistered vehicle permit to drive the vehicle, re-registering the car in a different state is the buyer’s responsibility.29
For more information: Selling a used vehicle
How to sell a car in SA
Roadworthy certificate: Not required when you’re selling a car in SA.5
Key paperwork: You must submit a notice of disposal to Service SA. If the buyer is from SA, you can do this online by logging into your mySAGOV account.30
If you’re selling to an interstate buyer: You’ll need to submit a paper notice of disposal to Service SA, either in person or by mail, if the person buying your car is from interstate.30 Service SA’s system will continue to record you as the last registered owner of the car in the state,30 and it’s up to the buyer to organise registration for the car in their state.24
For more information: Buy or sell a vehicle
How to sell a car in Tasmania
Roadworthy certificate: Sellers aren’t required to provide one.5
Key paperwork: You’ll need to submit a notice of disposal within seven days of the car’s sale.31 You can do this either online or by filling out a paper Notice of Disposal form and submitting it to Service Tasmania.31
If you’re selling to an interstate buyer: If you want to sell your car registered, you’ll need to submit a notice of disposal as usual. You may also choose to sell your car to an interstate buyer as unregistered – to do this, cancel the registration by handing your number plates in at Service Tasmania.17 Then, it’s up to the buyer to organise a Short-Term Unregistered Vehicle Permit.17
For more information: Selling your vehicle
How to sell a car in Victoria
Roadworthy certificate: If you’re selling a car in Victoria that’s registered, you’ll need to provide the buyer with a roadworthy certificate that’s less than 30 days old.12 You can search for a roadworthy tester near you.
Key paperwork: You’ll need to complete a notice of disposal and submit it to VicRoads within 14 days of the sale.32 You can use a printed Transfer vehicle form to collect the buyer’s details and provide them with yours, before completing the notice of disposal online through your myVicRoads account.32
If you’re selling to an interstate buyer: Before you officially sell the car, VicRoads recommends cancelling your registration in Victoria and removing the vehicle’s number plates – you can either destroy them or take them to a VicRoads Customer Service Centre.32,33 Once the buyer has purchased the car, they can then apply for a Victorian unregistered vehicle permit.33
For more information: Selling a car
How to sell a car in WA
Roadworthy certificate: Not required – when you’re selling a car in WA, it’s up to the buyer to inquire about the roadworthiness of the car.10
Key paperwork: Once you’ve sold the car, you must notify the Department of Transport and Major Infrastructure within seven days that you’re no longer the vehicle’s owner. This is called transferring a vehicle licence, which you can do:34
- Online – You’ll need a DoTDirect account.
- By mail or in person – You’ll need to complete a Notification of Change of Ownership form, which includes a blue seller’s copy that you’ll need to submit and a red purchaser’s copy, which you give to the buyer.34
If you’re selling to an interstate buyer: The Department of Transport and Major Infrastructure recommends returning the car’s licence plates to a DTMI service centre or regional agent and selling the vehicle to the interstate buyer as unlicensed.34
For more information: Sell a vehicle and transfer a vehicle licence
While selling a car in Australia can involve a fair bit of admin, the process hopefully seems a little less daunting now that you know more about how it works and what you need to do depending on which state or territory you live in.
And, if you’re planning on buying a new car once you’ve said goodbye to your current one and you’re after car insurance that’s a bit more you-shaped, why not consider starting a quote online or giving us a call on 13 9684?
1 Source: AutoGrab x Australian Automotive Dealer Association – Annual 2025 – Automotive Insights Report, January 2026
2 Source: NSW Government Service NSW – Selling a vehicle, February 2026
3 Source: NSW Government – Selling a used car, n.d.
4 Source: Consumer Protection WA – Selling your car through a dealer, May 2025
5 Source: carsales – Do I need a roadworthy certificate to sell my car?, n.d.
6 Source: VicRoads – Buying a used vehicle, n.d.
7 Source: carsales – Everything you need to know about personalised number plates, October 2023
8 Source: VicRoads – Transfer a number plate, n.d.
9 Source: Canstar – Can you trade in a car with finance owing?, March 2025
10 Source: Consumer Protection WA – Privately selling a vehicle, May 2025
11 Source: Canstar – How to do a pre-purchase car inspection, January 2025
12 Source: Consumer Affairs Victoria – Selling a car, June 2025
13 Source: carsales – How do I pay for a used car?, September 2025
14 Source: CarBuyers – What Happens to My Insurance When I Sell My Car?, March 2026
15 Source: Moneysmart – Choosing car insurance, n.d.
16 Source: NSW Government State Insurance Regulatory Authority – Cancelled policy refunds, December 2024
17 Source: Tas Government Transport Services – Buying, selling, transferring to or from interstate, November 2025
18 Source: Tas Government Transport Services – Cancel your registration, November 2025
19 Source: Qld Government – Selling a used vehicle, April 2021
20 Source: ACT Government Access Canberra – Roadworthy inspections, n.d.
21 Source: ACT Government Access Canberra – Selling an ACT registered vehicle, n.d.
22 Source: NSW Government Service NSW – Transfer a vehicle registration, March 2026
23 Source: NSW Government Service NSW – Submit a notice of disposal for a vehicle, March 2026
24 Source: Drive – Is it worth buying a car interstate?, January 2025
25 Source: NT Government – Light vehicle inspection changes, n.d.
26 Source: NT Government – Buying and selling a used vehicle: registration, n.d.
27 Source: NT Government – Evidence of vehicle ownership, n.d.
28 Source: Qld Government – Vehicle Registration Transfer Application, May 2025
29 Source: Qld Government – Changing your registration – moving a vehicle to or from Queensland, May 2025
30 Source: SA Government – Notify Service SA you’ve sold a vehicle, March 2026
31 Source: Tas Government Transport Services – Selling your vehicle, November 2025
32 Source: VicRoads – Selling a vehicle, n.d.
33 Source: VicRoads – Selling interstate, n.d.
34 Source: WA Government – Sell a vehicle and transfer a vehicle licence, October 2025
