When buying a car there are many things that you need to consider – but did you know that the advertised car prices don’t always display the full cost you will need to pay? Dealers will include GST and luxury car tax if these are applicable, but they will often omit the on-road costs.
On road costs include stamp duty, registration, compulsory third-party (CTP) insurance and dealer delivery charges.
Stamp duty is charged by state governments, rates vary by jurisdiction and some offer reduced rates for fuel efficient or even hybrid vehicles.
Stamp duty is determined by the value of the car – mid-tier models will have a higher stamp duty to an entry-level model. But did you know that if you add options to your new vehicle, such as a body kit or up-sized wheels, you’ll pay more.
Registration is payable to your state’s motor authority Your registration means that your car will be road legal for the first year thereafter you will need to renew it yourself.
Compulsory third-party insurance
CTP is a requirement for all registered vehicles and covers the cost of personal injury or death wrought on third-party parties should your vehicle be deemed to be at fault in an accident. Separate insurance is needed if you want coverage for yourself or your car’s damage.
Dealer delivery charges
These delivery charges cover costs that the dealership incurs to get your car ready to be driven off the lot. These could include removing all protective tape on the car, filling out paperwork, giving the car a wash and a scrub and attaching the car’s number plates