Due to pollution and climate change, private car ownership is largely discouraged by the government and motoring costs reflect the government's policy. When buying a new car a first-time registration tax has to be paid based on the size and value of the car. 

The Hong Kong motorist is faced with a shortage of parking spaces, high traffic density, high fuel costs and an annual vehicle licence fee. Hong Kong's heat and humidity make for a harsh environment for cars, so regular maintenance is essential.

However, buying a car in Hong Kong is relatively straightforward. All cars must be right-hand drive, as road users drive on the left. 

Note: Buyers must be over 18.

Buying a New or Used Car

There are dealerships for new cars throughout Hong Kong. Alternatively, there is a high turnover in the second hand market with new cars devaluing relatively quickly. Cars are often advertised by people leaving Hong Kong and such adverts may be found on websites such as Adpost, 28.com, or in newspapers and on notice boards in public places.

Checking a used car before purchase

It is advisable to see the car's service history to help validate the stated mileage. It is also advisable to get the car checked by an independent source to ensure that it is in good running order and has no major problems.

The Hong Kong Automobile Association will check a second-hand car if requested.

• The Hong Kong Automobile Association
  At: 391 Nathan Road, Yau Ma Tei, Kowloon
  Tel: 2739 5273
  Website

Certificate of Clearance

Anyone planning to buy a second hand vehicle should apply to the Licensing Office for the relevant Certificate of Clearance before going through with the transaction. This certificate, which is free, is valid for 72 hours and certifies that the car is free of outstanding penalties and not subject to any licensing suspension.

Notice of Transfer

Both the buyer and seller must sign a Notice of Transfer of Ownership of a Vehicle document. This form also documents transaction price.

• The Notice of Transfer form (TD025) can be downloaded: Click here

The Notice of Transfer form can also be obtained from any Transport Department Licencing Office, Post Office, Home Affairs Public Enquiry Service Centre or from the Fax-on-demand Service with the Transport Department Customer Service Hotline.

• Hong Kong Transport Department
  Tel: 2804 2600
  Website

Within 72 hours of any change of ownership, the Notice of Transfer form must be given to the Licensing Office of the Transport Department (see addresses below). 

Insurance

• For a comprehensive list of insurers, visit the Motoring Insurers' Bureau website

Process, Paperwork and Documents

Once the buyer and seller have agreed to the transaction, they must sign the Notice of Transfer of Ownership of a Vehicle document. The new owner should keep the original form and give a duplicate to the former owner. The Notice of Transfer form must be submitted to a Licencing Office in person by the buyer within 72 hours of the transaction along with the following:

• Vehicle Registration Document (the original document signed by the registered owner)

The buyer must provide:

• Proof of identity (passport or HK Identity Card)
• Proof of insurance (an insurance cover note)
• The appropriate fee

Licencing Offices are located at:

• Hong Kong Licensing Office
  At: 3/F, United Centre, 95 Queensway, Hong Kong
• Kowloon Licensing Office
  At: 2/F, Cheung Sha Wan Government Offices, 303 Cheung Sha Wan Road, Kowloon
• Licensing Office
  At: 5/F, Kowloon East Government Office, 12 Lei Yue Mun Road, Kowloon
• Sha Tin Licensing Office
  At: 2/F, Sha Tin Government Offices, 1 Sheung Wo Che Road, Sha Tin, New Territories

Once the notice has been submitted this does NOT mean that the transfer of ownership of a vehicle has been approved. The effective date of transfer of ownership will be specified on the new vehicle registration document issued to the new registered owner.

The application will not be accepted if there are any amendments that have not been endorsed by the new owner and the registered (old) owner.

Any outstanding First Registration Tax, Registration and Licence Fees on a particular vehicle will be charged on transfer of ownership of that vehicle unless remission is granted.

Vehicles registered on or after 1 August 1994 cannot be sold at a price greater than the taxable value, the value of tax-exempt accessories, the value of the unexpired portion of tax exempt warranty, plus the first registration tax paid.

To apply for approval of the selling price of a vehicle when transferring ownership, an Application for Approval of the Selling Price of a Motor Vehicle upon Transfer of Ownership form must be filled in, available from the addresses above.

The former owner must send the duplicate of the Notice of Transfer to the Commissioner for Transport within 72 hours after the transfer of ownership.

• Commissioner for Transport, Transport Department
  At: Immigration Tower, 7 Gloucester Road, Wan Chai, Hong Kong

An Alternative to Buying A Car

Car leasing is equivalent to a full-service car rental on a long-term basis. The leasing company will take care of the licensing, insurance and maintenance, ensuring that the car is operating in good order at all times. The motorist only needs to look after the monthly rental payments and the cost of petrol and parking.

In general, to lease a car, the person must be over 25 and have had a driving licence for at least two years

Further Information

• The Hong Kong Transport Department
• The AngloINFO INFOrmation Page, Registering a Foreign Vehicle in Hong Kong
• The AngloINFO INFOrmation Page, Vehicle Insurance in Hong Kong
• The AngloINFO INFOrmation Page,  Vehicle Roadworthiness in Hong Kong

Any suggestions for extra information that should be on this page?
Just fill in the form to tell us:

^ Top of Page ^