You have a car locked in mind and you have already zoned in on the agreeable price tag that sits on its windshield winking at you. But there is more to what meets the eye. There are additional car expenses that you need to budget for. Expenses that go beyond the sticker. There are mainly six expenses that you have to account for during and after you close in on the sale.
Stamp duty on a car can be taken care of if you buy it from a dealership because it is already integrated with the price you find on the sticker. It is a form of tax that you have to pay when buying a car and differs from state to state in which you buy your car from. You can use a stamp duty to calculate how much you can expect to pay in fees. It is also referred to as dutiable value on the transfer documents of the vehicle. If you plan to buy your car from a private seller you will need to pay stamp duty to transfer the ownership of the vehicle.
Owning a new car might come with the ushering of shiny new things, but it also comes with registration fees that need to pay in order for your car to be registered. Used cars don’t escape the fee as you have to pay a fee for the transfer of ownership which can vary between $20 to $30 depending on which state you are in. Once again costs will vary from state to state.
Maintenance and fuel
This will be something you have to factor in before you even buy the car. According to ASIC, Australians spend $1,737 on petrol a year.
If you drive a hatchback Holden Barina that has done 30,000 km on the road you are likely to pay $229 in servicing costs. This will also differ from state to state.
Websites such as RACQ break down various operation cost that comes with owning various models to help you see how much it will cost to take care of your vehicle. How much you spend on car fuel will be determined by how much you drive.
Monthly car loan repayments
The most popular form to buy a car in Australia is through a car loan. 59% of Aussies have a car loan attached to their car, with the average loan amount being $18,049. To get a competitive deal on your car loan you will have to compare car loans and their features. This will also determine how much you pay in monthly instalments.
Car insurance to protect your car
Your car needs car insurance to protect you from accidents and theft that might happen. No one is invisible and by having car insurance you can ensure that when things take a left you are covered. You can have Compulsory Third Party Insurance or Comprehensive insurance cover to keep you and your wheels protected on the road. The same manner in which you compare a loan can also be implemented when choosing car insurance to help you walk away with the best deal in town. You can speak to an insurer who will be able to guide through the process of choosing something that is financially suitable for you.
Be aware of modification costs
Your dealer might suggest throwing in a few extras and modifications which can significantly increase the cost of the car. Some of these extras can be sourced from elsewhere for a cheaper price, but sometimes these are just additional modifications you do not need at all. It is vital that you check the fine print before signing the contracts. If these modifications alter the performance of the car you could end up paying more in insurance costs.