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- Buying A Car
Keen to buy a new car? Don't be surprised when the final price adds up to more than the purchase price. Here are some things to consider.
Upfront costs.
Dealer Delivery.
Ever wondered how this is calculated? The dealer sets this price. It covers the manufacturer's delivery costs to you, including administration, detailing the car, compliance, and inventory costs like insurance and holding.
Stamp Duty.
You will have to pay stamp duty when you buy a new or second-hand car. Stamp duty is a form of tax and varies by state.
These differences can lead to significant fluctuations in total stamp duty. You should find out exactly how much you'll need to pay and factor that into your upfront costs.
Extras.
It looks like a great deal on paper, but when you get to the dealership, you realise that it doesn't include all of those things you've promised yourself.
The advertised price is probably for the cheapest version of the car. If the latest safety features, air-conditioning and a plush interior are important to you, be prepared to pay more than the advertised price.
Do your homework upfront. Go online and look for cars with the features that you want. You can plan and budget for it with greater confidence.
Finance.
You might be able to buy your car outright, or you may need a loan to stagger repayments and spread out the total cost.
Check out our great range of car loans. You can use the handy car loan calculator to work out your best option. When selecting a loan, think about how you can structure your ongoing budget to meet the repayment obligations. Will you make weekly, fortnightly or monthly repayments, and how long is the repayment term?
Ongoing costs.
Running costs.
You may think because you can afford the purchase price, the running costs will be manageable. Don't get caught out. Most vehicle membership organisations such as RAA or RACV provide information about the running costs of modern cars. And you can use our car budget calculator to work out what it will really cost you.
Insurance.
You will also need to factor in insurance for your new vehicle. Compulsory Third Party (CTP) insurance is a legal requirement. Many owners will also add comprehensive insurance to protect their vehicle. Talk to us about our competitive vehicle insurance. Keeping your loan and insurance all in one place will save you time and effort.
Other costs.
How long is a piece of string?
If you are buying from a dealer, then GST will be included. It is not payable on cars sold privately. And if you're buying second-hand, an independent vehicle inspection is wise. It could save you a packet!
Allow for unexpected costs too. It's good practice to set away a bit of money each week as a buffer. And now it's time to get out there and find that new car. Happy hunting!
Also in Buying A Car
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