Where to look and how to buy a car in Hong Kong

How to buy a car in Hong Kong

The Hong Kong government discourages people from owning private cars due to the high traffic density and the pollution that it causes. Furthermore the public transport system in Hong Kong is exceptional and can get a commuter to almost any neighbourhood or suburb. There is even a residential island where cars are forbidden called Discovery Bay. However when a person wants to buy a car in Hong Kong there are a few rules and procedures to follow.

Firstly one should secure their driving license as purchasing a car without one is impossible. Secondly it is important to be aware of how expensive owning a car in Hong Kong actually is, there is limited parking and getting stuck in traffic will be a daily ordeal. In addition Hong Kong car owners are subjected to very high road taxes, petrol prices and parking fees (which can go into thousands of HK dollars).

People who live in the New Territories may need to own a car due to the fact that it is quite far out from the city, and while there are taxis and other public transport available many people, especially families, feel that a car is a necessity.

The main rule of owning a car in Hong Kong is that the steering column has the be on the right (the British system) and that the driver has to be over 18. While buying a new car may be expensive, cars lose their value quickly and an expat can find a great deal on an almost new car at used car dealerships, newspaper classifieds and expat forums.

Before buying the car it is a good idea to get a mechanic to check the vehicle for any issues and also to have the full service history of the car. The Hong Kong Automobile association can assist with checking the vehicle.

The Hong Kong Automobile Association

391 Nathan Road, Yau Ma Tei, Kowloon

Tel: 852 3583 3628

Website: http://www.hkaa.com.hk

Before a second hand vehicle is purchased, the buyer should apply for a certificate of clearance from the Transport Department’s Licensing Office. This certificate is free and valid for only 72 hours, it will certify that the car has no outstanding penalties.

Once the car is purchased it is important to obtain insurance in the form of comprehensive vehicle insurance or a third party vehicle insurance (which is cheaper). Driving without insurance in Hong Kong is a big no-no as the penalties are steep and could even result in a driving ban.

The buyer and seller of the vehicle have to sign a Notice of Transfer of Ownership of a Vehicle through the Transport Department over three days following the purchase. The form can be downloaded from the Department of Transport’s website.

Transport Department

Tel: (852) 2804 2600

Email: [email protected]

Website:http://www.td.gov.hk/en/home/index.html

It is the responsibility of the buyer to submit the original copy of the Notice of Transfer of Ownership Form in person together with the payment, identity document, Vehicle Registration Document and proof of insurance to the Licensing Department. However the seller must also submit a photocopy of the Notice of Transfer of Ownership. This procedure must be completed within three days of the transaction. Any outstanding fees such as the First Registration tax or Registration and License Fees are the responsibility of the seller and will have to be settled.