With no road-worthy inspections and among the cheapest registration fees in the country, Adelaide has become a favourite city for backpackers to buy used cars.

This month a British newspaper and television station heralded Adelaide for it's no-fuss approach to car registration, and cheap and reliable cars that makes it ideal for backpackers to start their driving holiday.

"To make life easy South Australia forgoes tiresome red tape such as roadworthiness certificates ... nor do they pry too closely into your identity,'' reported Simon Calder, who was reporting a round-the-world trip for British newspaper The Independent.

English former backpacker Matt Holt agreed, adding that the low humidity weather of Adelaide meant older cars remained largely rust-free.

He expected to get about $4000 for his "smurf-blue'' Volkswagen Combi Van, which was about $2000 less than it would fetch in Sydney or Brisbane. Mr Holt said Adelaide was a cheap and trouble-free place to buy a car.

"In South Australia it costs $149 to register it for three months as a touring van,'' Mr Holt said. "In England it would cost 400 (pounds sterling) in tax, plus insurance.''

Mr Holt met his Australian wife Cass in England before they moved out to Australia and toured in a Combi last September.

He warned that while the Combi was a "cult classic for surfers ... you can't rush anywhere in them'', recommending a cruising speed of 85km/hr, and servicing every six months.

For ten years Nick Adams has built-up Boomerang Cars, buying and fixing cheap cars for backpackers who planned a driving holiday -- mostly from England, Ireland, Germany, Switzerland and The Netherlands.

"You can buy a car for $1000 and slap $150 in rego on it and go up to Cairns for three months,'' Mr Adams said.

"And even if you sold it to another backpacker all you do is sign the back of the rego form and hop on your plane.''

But he said many backpackers didn't know the basics of running a car.

"When I get two 18-year-old German girls we get quite tough with them and make sure they know how to change a tyre and check the oil,'' Mr Adams said.