Buying a new car is a major decision and long before you approach the show room or finance provider, you’ll probably have done some serious window (or on-screen) shopping. This will leave you with an idea of the car you want to buy and how much you plan to spend.
However, it’s important to consider in advance what the purchase will really cost you. It’s likely that your initial outlay is going to be rather more than the purchase price you see in the adverts.
For a start, you’re going to be paying stamp duty. This varies between Australian states. In Queensland for example, it’s currently 3-3.5% for most vehicles. Then there are the initial registration costs. Again, it varies by state, but for example in Queensland it’s set at “the dutiable value is the total of the vehicle's list price and the price of all items of optional equipment.” It also includes the GST paid on the car, and ranges from 3-3.5%.
You should find that the dealer will include list price, stamp duty and registration in the purchase price they quote you. They’re legally obliged to do so.
Next, there’s the premiums for your motor insurance – whether Third Party Property, Third Party Fire and Theft, or Comprehensive – and your Compulsory Third Party (CTP) insurance. These will vary depending on the size of engine.
Don’t forget about maintenance costs, either. Regular services will be built into the terms of the manufacturer’s warranty, which you also have to pay for.
And if you’re going to obtain finance to assist you with purchasing the car, you’ll be covering the interest, fees and charges associated with that loan, too.
Even if you don’t know the exact costs you’ll be facing, preparing a rough budget will protect you from any nasty surprises, leaving you entirely free to enjoy your new car purchase.
Are you looking for finance to help you purchase a new vehicle?
1800Approved is one of Australia's fastest growing car and asset finance brokers. We specialise in car finance, equipment finance, plus insurance and warranty services, and have previously arranged deals from AU$10k to AU$5m.
1800Approved services clients accross Australia, working with over 30 independent lenders to find the best deal.
We can also help with sourcing your new and used car warranty, and by sourcing vehicles and equipment through our Drive Wholesale arm.
To learn more about how we can help you, call us today at 1800 277 768
Topics: Car loan