Who Pays the Transfer Fee When Selling a Car in Victoria? It’s not always as simple as “buyer pays, seller walks away.” Let’s break it down, tradie-to-tradie style. We’ll explain exactly what the transfer fee is, how much it stings, who cops the bill (hint: it’s not always who you think), and what paperwork needs doing to keep VicRoads off your back.
Got a buyer lined up for your old Falcon or finally convinced your cousin to take the busted Corolla off your hands? Before you both shake on it and hand over the keys, there’s one big question that trips up heaps of sellers in Victoria — who’s stuck with the transfer fee?
What Are You Actually Paying For?
If you’ve never sold a car before, or it’s been a while, the transfer fee might catch you by surprise. But it’s nothing dodgy. It’s just part of transferring the ownership of a registered vehicle in Victoria.
Basically, when a car changes hands, VicRoads charges a registration transfer fee to update its system. This covers their admin costs and helps stop dodgy deals. Think of it like a toll booth on the highway between seller and buyer.
Why It Exists:
- Stops people from dodging fines by selling cars in Melbourne without paperwork
- Ensures new owners pay rego and roadworthy costs
- Protects buyers from buying stolen or encumbered vehicles
- Ensures proper transfer of ownership through the Ownership – Vehicle Licence Transfer system
Who Pays It?
Short answer: The buyer usually pays the applicable transfer fee. But like most things, there’s a bit of wiggle room.
In a private seller sale (which is most second-hand car deals), it’s common practice in Victoria for the buyer to foot the bill for the vehicle licence transfer fee and the stamp duty payable. Sellers are usually just expected to provide a valid roadworthy certificate (RWC), unless the car’s being sold unregistered, ACT-registered, exempt or modified.
But — and here’s the catch — nothing’s stopping you and the potential buyer from negotiating who pays what. Maybe you’re desperate to offload your old work ute before the in-laws arrive. Maybe the buyer’s short on cash. If you’re keen enough, you might offer to cover the transfer fee just to get it done.
Usual Setup in VIC:
| Cost Item | Who Typically Pays? | Notes |
|---|---|---|
| Transfer Fee | Buyer | Set by VicRoads; varies by type of vehicle |
| Stamp Duty | Buyer | Based on market value or sale price |
| Roadworthy Certificate | Seller | Must be less than 30 days old; certificate of roadworthiness or safety certificate |
| Vehicle Inspection (if required) | Buyer/Seller (negotiated) | Especially for heavy vehicles or modified vehicles |
Fee Cost in VIC
VicRoads adjusts the vehicle licence transfer fee occasionally, but as of early 2025, it’s sitting at $43.70 for a standard light vehicle. Not a fortune, but enough to cause a hiccup if someone’s assuming the other person’s paying.
Keep in Mind:
- Stamp duty is separate and based on the vehicle’s market value or the actual purchase price, whichever is higher.
- If you’re selling or buying a luxury car, panel van, or a custom-plated ride, expect higher rates of duty to apply.
- There’s a late fee if you don’t submit the vehicle registration transfer application within 14 days.
- Transfer of ownership is only finalised once VicRoads processes the vehicle transfer form — either online or at a VicRoads Customer Service Centre.
How to Transfer a Car in VIC
Let’s be real — no one likes dealing with forms, queues, and government websites. But transferring a vehicle registration in Victoria is pretty straightforward if you know what you’re doing.
Here’s the quick-and-dirty version:
For the Seller:
- Provide a signed transfer form (you can download it from VicRoads)
- Hand over a current roadworthy certificate (less than 30 days old, either electronic or handwritten certificates)
- Record the sale date and odometer reading
- Lodge a notice of disposal through VicRoads or in person at a service centre
- Optional: Provide an additional features list or personalised number plates agreement
For the Buyer:
- Complete their side of the transfer form
- Pay the transfer fee and stamp duty
- Submit everything to VicRoads within 14 days at a customer service centre or online
- Provide a valid Victorian licence, insurance policy, and accurate details (contact details, card details, etc.)
Tip: If the car doesn’t have a roadworthy certificate, it can’t legally be transferred with rego. Some folks sell it unregistered to avoid the cost, but that means you’ve got to organise a permit just to drive it or apply for initial registration.
What If You Skip or Delay It?
We’ve seen it all — cars sitting half-transferred for months, fines going to the wrong address, even rego notices landing with the wrong person.
Here’s what can go pear-shaped:
- Late transfer fee (extra $26.50 as of 2025)
- Liability for fines or tolls stays with the seller until the transfer is lodged
- Cancelled rego or flagged accounts if VicRoads suspects something dodgy
Don’t risk it. Do the paperwork right, on time, and keep copies. Especially if the buyer’s a mate, trust is great, but a signed form covers your backside.
Selling Without Paying the Fee?
Yep — if you’re the seller, you’re usually off the hook for the registration transfer fee. But that doesn’t mean you can ignore the paperwork. You’re still expected to:
- Provide a valid certificate of roadworthiness or safety certificate
- Fill out your half of the VicRoads transfer application form
- Lodge a notification of disposal (so you’re not hit with fines later)
The buyer takes care of the rest, including payment and confirming ownership transfer.
If you’re selling to an auto recycler or a unwanted vehicle removal service like Old Cars Removed in Melbourne, we’ll often buy the car unregistered or take care of the entire registration process ourselves. No fuss. No rego. No dramas.
What About Stamp Duty?
Stamp duty in Victoria is based on whichever is higher — the car’s market value or sale price.
Current VIC Rates (2025):
| Vehicle Type | Duty Rate |
|---|---|
| Vehicles under $69,152 | $8.40 per $200 or part thereof |
| Vehicles over $69,152 | $10.40 per $200 or part thereof |
| Primary producer vehicles | $5.40 per $200 or part thereof |
Some exemptions on vehicles apply, such as certain concessional rate classifications, stamp duty exemption for deceased estates or primary production. If unsure, contact VicRoads or check the ‘Contact Stamp Duty – Vehicle’ guide.
This adds up quickly, so don’t be shocked when the buyer winces at the total cost. But again, it’s part of the deal. Always check the VicRoads calculator if you’re unsure.
Selling to a Wrecker or Remover?
When you sell to a wrecker company like Old Cars Removed in Melbourne, things get a whole lot simpler.
We:
- Buy your old car as-is, registered, unregistered, or even a modified vehicle
- Handle most of the paperwork (including refund application if you’re eligible)
- Don’t muck around with fine print or delayed payments — just instant cash offers
Whether it’s storm-damaged, written off by a repairer car insurance policy, or you’re over the hassle of rim insurance and renewal notices — we’ll tow it away and give you a fair deal.
FAQ
Can I sell a car in Victoria without paying the transfer fee?
Yes, sellers don’t pay the transfer fee — that’s the buyer’s job. You just need to provide the correct details, paperwork, and a valid certificate of roadworthiness.
What happens if we don’t lodge the transfer within 14 days?
VicRoads charges a late fee, and the seller might still be liable for tolls and fines. Lodge the transfer vehicle form on time to avoid dramas.
Do both parties need to be present at VicRoads to transfer a car?
Nope. You can complete the vehicle registration transfer application separately and lodge it online. Just make sure both sides are signed and include accurate details.
How can I check if the ownership transfer went through?
Buyers can log in to their VicRoads account using their licence details. Sellers can check if the car’s no longer under their name using the online disposal service.
Is stamp duty the same as the transfer fee?
No — stamp duty is calculated based on sale price or market value, while the registration transfer fee is a flat admin charge. Both are paid at the time of application must be submitted by the buyer.
