Upfront costs when buying a car

When buying a car in Australia, be aware that the actual cost of the car includes more than just the advertised purchase price – there are additional costs that you will need to budget for.

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.

Stamp duty will be an additional cost – and this varies depending on which state you are in.

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.

Any extras that you order for the vehicle will normally also cost you extra. The advertised price usually only covers the minimum, i.e. the base model with everything stock standard. If you are buying the vehicle with extras such as ABS, automatic transmission, metallic paint and any upgraded trim, expect that you will be paying additional costs for these extras. You could be surprised when presented with the total purchase price of the vehicle if you are unaware that the floor mats, stereo upgrade, mirror and light protectors, body kits, spoilers, window tinting, rust proofing and so on that you are accepting as they are offered to you, are all adding to your eventual bill. If you are considering any of these optional extras – ask for the price before you make a decision, and use every opportunity to negotiate for some of them to be included in the base price of the vehicle, if you can.

In addition, you will need to cover the cost of registering your vehicle, as well as compulsory third party insurance, fire/theft or comprehensive insurance. These costs will also need to be paid annually when renewed. Any vehicle that is sold as an unregistered vehicle will incur the cost of number plates.

It is so easy to forget about all of these items when swept away in the enthusiasm and excitement of buying a new car. Being prepared and aware enables you to budget accordingly, and also positions you to ask the right questions and equips you to negotiate where appropriate.

Interested in purchasing a car but want to find out more about any costs involved? Contact us on 1300 889 256 or message us to find out more!

When comparing vehicles, read our guide to ANCAP safety ratings. If you also need to sell your existing car, explore Carbiz car-selling options.

Back to News

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.

For help organising your next steps, read our car accident insurance claim checklist and explore accident replacement vehicle options.

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

Updated 6 October 2026.

When an insurer declares a car a write-off, it has assessed the vehicle as a total loss under the policy. The damage may make repairs unsafe, or the cost of repairing the car may make a repair uneconomical. A write-off does not always mean the car is visibly destroyed.

How is a write-off decision made?

The assessment can take account of the vehicle's value, repair costs, salvage value and the policy terms. There is no single repair-cost percentage that determines every write-off across Australia. Ask the insurer for its assessment and the basis for its decision.

A total-loss insurance decision and a vehicle's written-off registration category are related but different matters. Whether a car can return to the road depends on the damage classification and the rules of the relevant state or territory.

Statutory and repairable write-offs

Statutory write-off: the vehicle meets specified damage criteria and cannot be re-registered for road use.
Repairable write-off: repairs may be technically possible, but the vehicle has been assessed as uneconomical to repair. This label does not itself authorise repairs or guarantee re-registration.

Requirements vary across Australia. In NSW, an eligible written-off light vehicle needs an Authorisation to Repair from Transport for NSW before work begins. Only limited applications are considered, and vehicles with statutory write-off damage are excluded. Approval, compliant repairs and the required inspections are separate steps.

What happens to your insurance payout?

The settlement depends on your cover and circumstances. It may be based on an agreed value, a market value or a replacement-vehicle benefit if your policy provides one. An excess, outstanding premium or finance arrangements may affect the amount you receive. Ask for a written breakdown before accepting the settlement.

Keep the assessment, photographs, policy documents and correspondence together. If you disagree with the valuation, provide relevant evidence and use the insurer's complaints process. See AAMI's explanation of total-loss claims for an insurer's example; your own policy determines your cover.

Getting around after a not-at-fault accident

If you need a replacement vehicle, tell Carbiz that your car has been declared a write-off. Eligibility, vehicle availability, the hire period and the terms of the agreement need to be confirmed for your circumstances. A write-off does not automatically entitle everyone to unlimited hire.

Contact Carbiz to discuss your accident replacement vehicle options. For a practical checklist, read what to do after receiving a write-off decision.

27 September 2017