Buying a vehicle is an exciting process that involves many decisions that need to be made. While you’re likely thinking about the vehicle itself, features and factors like vehicle insurance premiums and registration fees might not even cross your mind.
Here’s a look at some of the extra expenses you should expect when you buy that shiny new set of wheels.
Registration costs
Driver licensing fees are regulated by each Australian state meaning the price you’ll pay with vary depending on where you live. This is a necessary legal step in being able to drive your vehicle freely on the road.
You’ll discover that there are many car models that fall under different registration costs, with generally the larger the vehicle the more expensive it will be to register it e.g. 4wds, campervans etc.
Vehicle insurance
Insurance is another necessity with a new vehicle to cover you in the event of an accident. There are a number of factors that affect your insurance premiums, including the type of vehicle you drive and where you live. Some insurers will also factor in how many years of experience you have as a driver as well as the age, gender and profession on which to base your premium.
Some cars will come fitted with a comprehensive insurance package, but these are often more expensive. If you are looking for a cheaper option, it may be worth considering an insurance policy with basic coverage options.
It is advised that you choose carefully when making this decision as having no cover could result in paying the full amount for repairs if something were to happen to your car. As well as considering these factors, don’t forget to ask your insurer about details such as whether they offer a multi-car discount.
Registration and compulsory third party insurance premiums will usually amount to between $500 – $1,000 per year.
Vehicle stamp duty
When you’re car shopping, another cost that might not immediately spring to mind is the Stamp Duty on your new vehicle purchase. This is a tax that needs to be paid when the contract of sale is exchanged between you and the dealer.
Stamp duty amounts vary from state to state but are usually dependant on the cost of your car. It may also be charged in addition to registration or insurance, so make sure you work it all out before signing any agreement. This can amount to hundreds of dollars that are added to your original vehicle price.
The final instalment
Before sorting out financing for your new set of wheels, make sure you understand all of your options. If you choose to get a car loan, make sure it is from a reputable source and has been tailored to suit your specific requirements. Search for local finance providers to get the best rate such as if you’re based in WA look for a Perth car loan to get the best deal possible.
It’s no secret that buying a car can be an expensive process but knowledge is power and with this information in hand you won’t be caught off guard when making your car purchasing decisions. Just remember that it is possible to save money and still purchase a great new vehicle, but you need to put in the research before making your final decision.