Buying a car is one of the biggest financial decisions most Australians make, and the process becomes even more confusing when you’re purchasing a vehicle in one state while living in another. At the same time, many drivers also wonder whether highway driving or city driving is better for the health of their car. This guide breaks down both questions clearly, helping you understand the legal requirements of interstate car buying and the real impact different driving environments have on fuel efficiency, maintenance costs, and long-term vehicle performance.
Buying a Car in One State While Living in Another: Is It Allowed?
The short answer is yes, you can buy a car in one state in Australia even if you live in another. Australians commonly do this when searching for better prices, limited-edition models, or well-maintained used vehicles.
However, while it is legally allowed, you need to understand the requirements for registration, transfer, insurance, and potential roadworthy inspections.
1. Buying a Car Interstate: How It Works
Buying a New Car Interstate
When buying a brand-new vehicle from a dealership in another state, the process is usually straightforward:
- You can choose to register the car in the state of purchase before driving it home.
- Or you may arrange for the dealer to sell it unregistered, allowing you to register it once you return to your home state.
- Some dealerships assist with interstate registration transfer for an additional cost.
This is common when manufacturers have different pricing across states or when stock availability varies.
Buying a Used Car Interstate
For used cars, the process is slightly more complex because each state has its own roadworthy certificate (RWC) or safety check requirements:
- Queensland: PPSR check + Safety Certificate
- Victoria: Roadworthy Certificate
- NSW: Pink Slip (eSafety Check)
- SA, WA, NT, Tasmania: Different inspection rules depending on registration status
If you buy a used car interstate:
- You may drive it home while still registered in the seller’s state (as long as the registration is valid).
- Once home, you must transfer the registration to your local state authority (e.g., VicRoads, Service NSW, TMR Queensland).
- An RWC is usually required during the transfer.
If the vehicle is sold unregistered, you must:
- Obtain a permit to drive an unregistered vehicle back to your state
- Get a roadworthy inspection
- Register it in your home state before regular driving
2. Do You Pay Additional Fees for Interstate Car Purchases?
You may encounter additional costs when buying a car in another state:
Transport or Travel Costs
If you decide not to drive the car home, transport services, whether private carriers or logistics providers, can cost:
- $300 – $1,000 for short distances
- $800 – $2,000+ for cross-country transport (e.g., Perth to Sydney)
Some buyers use companies like WA Freight to move vehicles safely across Western Australia and to other states.
Stamp Duty and Registration Costs
You must pay stamp duty and registration fees according to your home state, not the state where the car was purchased.
Roadworthy Inspections
A fresh RWC in your home state may be required even if the car had one in the original state.
d. Insurance Adjustments
Your home address determines your insurance premium, not the state of purchase.
3. Pros and Cons of Buying a Car Interstate
✔ Pros
- More choices, especially for rare models or specific trims
- Potential savings if prices differ across states
- Access to well-maintained vehicles from regions with lower wear (e.g., rural areas)
✘ Cons
- Interstate transfer paperwork
- Additional inspections required
- Costs of travel or transport
- Delays in registration transfer
If you’re comfortable with logistics, buying interstate can be an excellent way to secure a better deal.
Is It Better to Drive on the Highway or in the City?
Now to the second big question: Which is better for your car, highway driving or city driving?
Many drivers assume that city driving is easier and highway driving is harsher because of high speeds. Surprisingly, the opposite is true: highway driving is usually better for your car.
Both driving environments affect fuel efficiency, engine longevity, brake wear, and overall maintenance costs in different ways.
1. Highway Driving: Benefits and Drawbacks
Benefits of Highway Driving
Better Fuel Efficiency
Most cars maintain steady speeds on highways, usually between 80–110 km/h, allowing the engine to run in its optimal efficiency range.
This means:
- Lower fuel consumption per km
- Less engine stress
- Reduced carbon buildup
Less Wear on Brakes
Since you maintain a consistent speed, you brake far less than in city traffic.
Brakes last significantly longer.
Better for the Engine
Engines are designed to operate at warm, consistent temperatures. Highways allow continuous operation without:
- Constant idling
- Frequent stopping
- Quick acceleration bursts
This reduces long-term wear.
Smooth Driving Conditions
Highways usually have fewer potholes, fewer sharp corners, and more predictable traffic flow.
Drawbacks of Highway Driving
- High-speed travel increases the severity of accidents
- Wind, insects, and small rocks can affect the paint
- Long drives may cause more tyre wear if you travel at high speeds frequently
- Monotony can lead to fatigue
Still, in terms of mechanical health, the highway wins.
2. City Driving: Benefits and Drawbacks
Benefits of City Driving
- Lower speeds reduce the severity of accidents
- More services nearby (mechanics, petrol stations, etc.)
- Shorter trips for daily errands
However, that’s where the advantages end.
Drawbacks of City Driving
Higher Fuel Consumption
Stop-start traffic kills fuel efficiency:
- Idling wastes petrol
- Constant acceleration requires extra power
- Air-conditioning is often on more frequently
Faster Wear-and-Tear
City driving increases wear on:
- Brakes
- Suspension
- Transmission
- Tyres
Speed bumps, traffic lights, and congestion all contribute.
More Stress on the Engine
Short trips prevent the engine from fully warming up, leading to:
- Moisture buildup
- Oil contamination
- Carbon deposits
- Reduced engine lifespan
City driving is sometimes called “severe duty driving” in manufacturer maintenance guides.
3. Which Driving Environment Is Better?
Overall, highway driving is better for:
- engine health
- fuel efficiency
- brake longevity
- overall vehicle maintenance
Driving on highways helps keep the engine clean and running smoothly, which also helps protect a car from long-term wear.
Tips for Buying a Car Interstate and Driving It in Australia
If you’re buying a car interstate and plan to use it mostly in either the city or on highways, here are some practical tips.
1. Before Buying Interstate
- Check the car’s service history
- Run a PPSR check to ensure it has no debt or write-off history
- Verify registration status
- Ask for high-resolution photos or a video inspection
- Arrange for an independent mechanic inspection if buying used
2. When Transporting the Car Home
- Keep proof of purchase and temporary permits (if needed)
- Confirm insurance before you start your journey
- Plan a route with fuel stops and rest breaks
If driving long distances, highway conditions are ideal for breaking in a new car or letting a used engine settle into smooth operation.
3. After Arriving in Your Home State
- Obtain a local roadworthy certificate
- Transfer registration within the required timeframe
- Update insurance with your home address
Different states impose different deadlines. NSW allows 14 days, while others differ.
Conclusion
Buying a car in one state and living in another is completely legal and often financially smart, as long as you understand the required paperwork and associated costs, such as inspection and registration transfer.
When it comes to driving habits, highway driving is usually better for your car’s long-term reliability and fuel efficiency. City driving, while convenient for short trips, places much more strain on the engine, brakes, and transmission.
Whether you’re choosing where to buy a car or planning how you will use it, understanding these factors helps you make smarter decisions, reduce costs, and extend your vehicle’s lifespan.
