31 October 2017

The cost of owning a car

Buying a car could be one of the most expensive purchases that you will make – having said that you should understand all of the financial implications before you buy.

Obviously, there are the initial costs of buying a car, such as

  • Car registration
  • Compulsory Third Party Insurance
  • Comprehensive insurance
  • Mechanical or other inspections
  • Dealer delivery charges – Dealer delivery is a charge set by the dealer. It covers expenses that the dealer will incur in selling the car – such as cleaning the car, compliance, administrative costs and the cost of holding the vehicle prior to the sale.
  • Goods and services tax (GST) is a broad-based tax of 10 per cent on most goods sold in Australia. If you are buying a luxury vehicle, be aware of the Luxury Car Tax, which is 33 per cent on the GST-inclusive value of the car over the relevant threshold.
  • Government taxes and levies which include stamp duty and transfer fees. Stamp duty will vary depending on which state you are in
  • Any vehicle that is sold as an unregistered vehicle will incur the cost of number plates.

In addition to the initial costs, you need to consider the cost of running your vehicle. Australian households are now spending up to $22,000 every year on their vehicles as toll-ways, insurance and other costs continue to rise. Have you considered the everyday running costs? These will include:

  • Fuel, which makes up a significant portion of the running costs
  • Road tolls
  • Insurance which will be compulsory third party as well as comprehensive insurance which you may decide to purchase to cover you for any damage to your own vehicle
  • Loan repayments, if you have not purchased your vehicle with cash
  • Regular services at the correct servicing interval as stipulated by the manufacturer. If you have purchased a new vehicle or a relatively new used vehicle the cost of servicing may be covered by a service warranty for a period of time.
  • Spare parts and repairs, which will include tyres, shock absorbers, brake pads etc that need replacement on a regular basis, as well as any part that may fail unexpectedly and need replacement.
  • Membership of associations and clubs
  • Roadside assistance
  • Registration costs which need to be renewed annually

 

Carbiz Online is a full circle motor vehicle dealership. We can help you source ANY car you want at the best possible price, finance, trade-in, insurance, warranty and so much more. For more on costs of owning a car, Contact us on 1300889256 today!

You may find these interesting

What To Do If Someone Hits Your Parked Car

Coming back to find your parked car damaged is never fun, but knowing how to respond correctly can save you time, money and stress.

Firstly, understand that getting upset is natural, but taking a deep breath will help you make better decisions. Examine your car thoroughly and document any visible damage, taking multiple photos from different angles, including close-ups of dents, scratches or broken parts, and capturing the surrounding area, such as road signs and markings, for context.

Next, see if you can locate the driver responsible. Sometimes, people leave a note with their contact information and insurance details. If there’s no note, look for witnesses nearby who may have seen what happened. You can also check for CCTV from nearby businesses, homes or on the street, as some areas have coverage. If you’re unsure, consider contacting the local council to find out whether cameras are in place that might have captured the accident.

If the driver didn’t leave a note, or if they did but are unresponsive or the information they provided seems incorrect, contact the police to report the accident and provide all the information you have, including photos, footage and witness statements. Be sure to request a copy of the police report, as it can be useful when dealing with insurance.

If you’re still having a hard time getting a hold of the at-fault driver and therefore cannot claim directly through their car insurer, it’s time to lodge a claim with your own insurance provider, if you have one. Provide them with as much information as possible, including the police report. From there, your insurer can determine whether your coverage, along with the information you have, will cover the damage to your car.

If your car insurer happens to find information about the at-fault driver and is able to have them lodge a claim so the costs of the damage are recoverable, you can contact Carbiz for a replacement car while your car is being repaired or until it’s been deemed a total loss. This ensures you’re not left without a car during this time, giving you peace of mind and the ability to keep your life moving.

Read more
What It Means When Your Car Is Declared A Write-Off After An Accident

If your car has been involved in an accident, you may hear the term “write-off” from your insurance company or repairer. But what does it actually mean when your car is declared a write-off? Understanding this process can help you make informed decisions about your car, repairs and costs.

A car is considered a write-off when the cost to repair it after an accident is too high compared to its market value. Insurance companies often calculate the repair cost and compare it to the car’s value prior to the accident. If the repair cost is more than a certain percentage of the car’s value, typically around 60–75%, the car may be classified as a write-off. This doesn’t always mean your car is completely destroyed; sometimes the car could technically be repaired, but the cost would outweigh the benefits.

There are different types of write-offs. A total loss write-off is when the car is so badly damaged that repairing it is not financially viable. A repairable write-off is when the car can be fixed, but it requires significant repairs. In either case, the insurance company will usually pay out the car’s value at the time of the accident, minus any applicable excess or deductions.

The cost implications of a write-off can vary. If your car is declared a write-off, you may need to consider the cost of replacing it with another car. Some car owners opt to keep a repairable write-off, but this comes with the added repair costs, which can be substantial depending on the extent of the damage. Repair costs can quickly add up, especially if the accident involved structural damage or expensive parts.

It’s also important to understand that a car that has been written off may have a lower resale value even after repairs. Future buyers often view written-off cars as higher risk, which can affect the cost of insurance and overall value.

If your car is declared a write-off after an accident, speak with your insurance provider to understand your options. You may receive a payout for the car’s value, and in some cases, you can negotiate repair costs or even retain the car if it is repairable. Knowing what a write-off means, how it affects repair costs, and how it impacts the car’s value can save you time, money and stress after an accident.

Read more