Ultimate Guide To Buying A Car In Hong Kong 2026

GETTING A DRIVING LICENSE IN HONG KONG AND REQUIREMENTS FOR OWNERSHIP:

Buying a car in Hong Kong is easy!  There are a few key things every driver requires before hitting the road in Hong Kong.  You will need a Hong Kong ID Card (HKID), a local driving license (click here for the guide on how to get a license in Hong Kong), and a Hong Kong postal address.

• How To Get A Driver's License In Hong Kong, Click here!

HOW MUCH DO NEW AND USED CARS COST IN HONG KONG?

Owning a car in Hong Kong offers flexibility and convenience, but it comes with a range of costs, both upfront and ongoing. Here’s a step-by-step breakdown of what to expect when buying and maintaining a car in the city.

STEP 1: Buying the Car

1. Car Purchase (One-off Cost)

• Used cars: HK$10,000–40,000 (budget models, may need significant maintenance)
• Luxury used cars: HK$70,000–80,000+
• Japanese used cars: Around HK$100,000+
• European used cars: HK$150,000+

Auto Financing:

• Loans available for up to 90% of the car's value (for cars ≤10 years old)
• Loan terms: 1–5 years
• Interest rates: Generally reasonable and transparent

2. First Registration Tax (One-off Cost for New Cars Only)

• Required for new vehicles
• Calculated based on retail price or provisional taxable value
• Assessed by the Customs & Excise Department

3. Transfer of Ownership Fee

• HK$1,000
• Paid when transferring ownership (e.g. buying a used car)

STEP 2: Annual Costs of Ownership

1. Vehicle License Fee

• HK$2,929–HK$15,976/year
  • Varies based on engine size
• Must be renewed annually, up to 4 months before expiry
• Requires valid insurance and a passed vehicle examination (if applicable)

2. Car Insurance

• Starts around HK$2,500/year
• Third-party insurance is mandatory
• Comprehensive coverage costs more, depending on car value and driver profile

3. Annual Vehicle Examination

• Required for cars 6 years or older
• Must be done at a Designated Car Testing Centre
• Needed before renewing the vehicle license

4. Annual Servicing

• General servicing: HK$4,000–8,000/year
• Replacement tires: ~HK$700 each
• Budget for regular maintenance like oil changes, brake pads, etc.

STEP 3: Weekly Running Costs

5. Petrol

• Prices fluctuate, but expect HK$17–20 per litre (2025 average)
• Weekly fuel costs depend on usage and car type

6. Tolls

• Cross-harbour tunnel tolls range from HK$20–75 per trip
• Factor in tolls if commuting between Hong Kong Island, Kowloon, and the New Territories

7. Parking

• Monthly parking spaces in residential areas: HK$2,000–5,000+
• Hourly parking: HK$20–40/hour in urban areas
• Consider this a significant ongoing cost

BUYING A CAR DIRECT FROM OWNER VERSUS BUYING FROM A DEALER:

For new cars, you can go directly to the showroom.  For second-hand used cars in Hong Kong, you have two options - you can buy from a dealer or buy from an owner.

Questions to ask when buying a car from an owner or a secondhand dealership:

• What’s the full service history?
• Has the car been in any accidents (major or minor)? Were the repairs done professionally?
• How many previous owners has the car had? (Fewer than 2 is ideal)
• When was the last service? (Over a year ago may mean upcoming maintenance costs)
• Is the mileage accurate and backed by service records?
• Is there any existing warranty? If not, can you provide a 12-month labor and 6-month parts warranty?
• Is the vehicle license valid and up to date?
• Is there any outstanding loan or finance on the car?
• Are there any current mechanical issues or dashboard warning lights?
• When were the tires, battery, and other key parts last replaced?
• Can I take the car for an independent mechanical inspection?
• What’s the best price you can offer? (Start negotiations at around 20% below asking price)
• Are there any extra fees (e.g., admin or transfer costs) I should know about?

Buying From Owner: Typically, owners sell their cars around the period before school exits for the summer (May-August ), so be sure to check Facebook forums and local forums for owners leaving the country and looking for a quick sale.  Be sure to test drive the car in advance, and if you want to get the car fully checked before purchasing, at the Hong Kong Automobile Association or Hong Kong Motor Inspection, as they offer pre-owned car inspections.  Inspections typically start at around HK$1000 and are particularly important if you need a Certificate of Clearance.

Buying From Dealer: Hong Kong has a few key places to buy pre-owned or used cars in Hong Kong. Vins have been a go-to for many people to buy and sell their used cars. They make it very easy to shop online or visit their showroom in Wan Chai, test drive a car, and handle all the paperwork.  It's a good place to start as a first-time buyer.

Forums For Direct Owner Automobile Sales In Hong Kong:

• Asia Expat Used Cars Forum
• Private Car Facebook Group
• Facebook - Check local community forums and Facebook Marketplace
• Geo Expat, Online

Used (Second-Hand) Car Dealers In Hong Kong:

• Vins Motors, Pok Fu Lam
• Automall, Wan Chai
• Beyond Cars, Tsim Sha Tsui
• HK Car Trader, Online
• Vincent Motors Co, Causeway Bay
• DCH, Kowloon Bay
• Carro, Tsim Sha Tsui

New Car Dealerships In Hong Kong:

• Mercedes-Benz Hong Kong
• BMW Hong Kong
• Nissan Hong Kong
• Jaguar Hong Kong
• Toyota Hong Kong
• Audi Hong Kong
• Land Rover Hong Kong
• Porsche Hong Kong
• Volkswagen Hong Kong
• Honda Hong Kong
• BYD
• ZEEKR
• Tesla

Car Inspections In Hong Kong:

• Hong Kong Automobile Association, www.hkaa.com.hk/en/
• Hong Kong Motor Insurance, www.hkmi.com.hk

CAR INSURANCE IN HONG KONG:

Third-party car insurance is required in Hong Kong, and premiums vary based on the type of car, size of the engine, and the owner's driving history.  Typical insurance policies start at HK$2500. Insurance must be renewed annually.

Car Insurance Providers Hong Kong:

• Kwiksure, www.kwiksure.com *very popular
• Well Link Insurance, www.wli.com.hk/en/personalinsurance
• AXA Car Insurance, www.car.axa.com.hk/
• AIG Car Insurance, www.aig.com.hk/personal/auto
• Click here for more insurance companies offering third-party car insurance in Hong Kong!

VEHICLE LICENSE IN HONG KONG: Transfer Of Ownership, Annual Renewal, And Examination

All vehicles in Hong Kong must be registered and licensed in Hong Kong. Registration is a one-off matter, which means the vehicle has a registration mark (private car, goods vehicle).  Licensing is done annually and is the responsibility of the owner of the vehicle every year. The license is what is displayed on the left side of the vehicle's windscreen.  The vehicle license fee varies depending on the type of vehicle and its cylinder capacity. To give you an idea of annual costs here, it ranges from HK$2,929  to HK$15,976 (big engines!) each year.

Vehicle License Renewal - Annual Process: Submit four months before expiry!

You can submit your application for renewal of vehicle license by post, through the Internet, or at the licensing office in person or by an agent within four months before the expiry. Late renewal is subject to an additional charge of 0.33% of the license fee for each day overdue.

Upon successful renewal, the Transport Department will send the renewed vehicle license to your correspondence address by registered mail within 10 working days. If you have not received the vehicle license four weeks from the date of submission, please contact +852 2804 2600.

To submit online: Click here.

To submit by post: Click here.

Transfer of Ownership Of Car License In Hong Kong:

When buying a car, you will need to arrange a transfer of ownership.  You will need an HKID, address proof, insurance cover note (so be sure to get insurance first), and fill in the form TD25 to arrange the transfer.

How to submit? No application by post will be accepted. You must submit your application in person or by an agent (if an agent applies, the agent is required to produce his/her own original identity document for record purposes).

• Transport Department Hong Kong Licensing Office at 3/F, United Centre, 95 Queensway, Hong Kong
• Transport Department Kowloon Licensing Office at 2/F, Cheung Sha Wan Government Offices, 303 Cheung Sha Wan Road, Kowloon
• Transport Department Kwun Tong Licensing Office at 5/F., Kowloon East Government Offices, 12 Lei Yue Mun Road
• Transport Department Sha Tin Licensing Office at 2/F., Sha Tin Government Offices, No. 1 Sheung Wo Che Road, Sha Tin, New Territories

Vehicle Examination In Hong Kong:

Private cars that are six years or older must undergo annual vehicle examinations at Designation Car Test Centres, including used cars.  You can make an appointment online and take it for a mechanical exam. This should be done annually!

MORE CAR BUYING AND CAR OWNING RESOURCES IN HONG KONG:

• Transport Department Hong Kong, +852 2804 2600, www.td.gov.hk/en/home/index.html
• License and Permits in Hong Kong, Click here
• Driving Schools In Hong Kong, Click here
• Annual Vehicle Exam Booking, Click here
• TD Forms, Click here
• Parkopedia, Parking in Hong Kong