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!