Understanding Driveaway Pricing: What’s Included

When it comes to buying a car, the most accurate cost to consider is its driveaway price. However, understanding what this price includes can be confusing for buyers, as it often goes beyond the advertised retail price due to additional fees and charges. Here’s a breakdown of what’s typically included in driveaway pricing.

Additional fees and charges when buying a car

Luxury Car Tax (LCT): If your vehicle’s purchase price exceeds a certain threshold, LCT may apply. The threshold for the 2022-24 financial year is $89,332 for fuel-efficient vehicles and $76,950 for all other vehicles. LCT is charged at 33 cents to the dollar for the amount over the threshold.

Dealer Delivery Fee: This fee is not government-regulated and varies between car brands and dealerships. It covers expenses incurred by the dealership in preparing the car for you, such as delivery to their premises, detailing, inspection, and storage. Dealers may choose to waive or inflate this fee.

Stamp Duty: Stamp duty varies by state, territory, and factors like the vehicle’s value, environmental credentials, and whether it’s new or used. For example, in NSW, it’s calculated at $3 per $100 (or part thereof) of the vehicle’s value. Vehicles over $45,000 are charged at a different rate.

What’s included in Driveaway Pricing

Registration and Compulsory Third-Party Insurance (CTP): Driveaway pricing typically covers vehicle registration, which includes CTP insurance. CTP provides coverage for injuries resulting from road accidents, even if you’re at fault. The specific cost varies by state.

What’s not included in Driveaway Pricing

Comprehensive Car Insurance: Driveaway pricing generally includes CTP insurance but does not cover comprehensive car insurance. Comprehensive insurance is essential for covering your own vehicle in the event of an accident. Third-party insurance only covers other vehicles, property, and liability.

Fuel or EV Charge: Driveaway pricing may not include a full tank of fuel or a full electric charge, so it’s a good idea to check if the dealer can provide this.

Ongoing Costs: While driveaway pricing covers initial fees and charges, ongoing expenses like servicing, registration renewal, and maintenance are not included. Manufacturers may offer fixed-price servicing, which can be prepaid.

Understanding driveaway pricing is essential for budgeting when purchasing a car. While it covers several fees and charges necessary for getting your vehicle on the road, it’s crucial to consider additional costs like comprehensive insurance, fuel, ongoing maintenance, and registration renewals to make an informed decision about your total ownership expenses.

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