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Costs To Budget For When Buying A Car

New car budgeting

There is more to a car than the purchase price. Below is a list of things to consider

Buying the car

Dealer Delivery: This charge is set at dealers' discretion and covers the costs from taking delivery from the car from the manufacturer to you, for example, administration, detailing the car, compliance, and inventory costs like insurance and holding.

Stamp Duty: The rules around stamp duty you'll pay varies by state. Check out Stamp duty on cars:

Extras: If you're looking a new car and are attracted by the advertised price, be prepared to pay more. For example, a new car advertised as $15,000 may be on the road for over $20,000, especially if you opt for common extras like an automatic transmission and metallic paint.

Also remember, the advertised price is probably for the cheapest version of the car. For example, a 3 door rather than a 5 door hatch back and the lowest litre engine which also may be a model without some of the extras you want, like ABS or optional leather seats.

Make sure you do your sums on a purchase price in line with the features you want on the car. Not sure? Check out cars currently for sale on Carsguide.

Ongoing car costs

Running costs: You may think because you can afford the purchase price, the running costs are a 'no-brainer', but according to the RACV's 2007 Vehicle Operating Costs, a medium-sized car costs about $200 per week - that's about $10,000 a year.

When you're considering your running costs, take into account:
Maintenance & servicing
Insurance and roadside assistance

Insurance: Upgrading your car can mean an upgrade in your insurance costs. Using an online quote tool to put into your budget to give you an idea how much more you'll pay.

Finance costs: Car finance is flexible way to buy a car; but borrowing does cost money. For example, using our loan calculator a $15,000 car loan at 11%pa interest repaid over four years would include $3,609 in interest charges. This could be money well spent, but it is worth considering up front.

Use our Loan Repayment Calculator  to find out how much of the amount you pay back will be interest.

Other costs you might be wondering about:

GST: GST and Luxury Car Tax are included in the recommended retail price quoted by dealers. It is not payable on cars sold privately.