New car price rules? What it means

Most importantly, it means every car price you now see in advertising is a 'drive-away' price. And with the new Australian Competition and Consumer Commission regulations, prices will appear to rise as much as $4000 for popular family cars like the Ford Falcon or Holden Commodore, depending on the State you live, because dealers must now include the full on-road costs of a vehicle.

Car dealers have to list all the costs of buying a new vehicle in their advertising. There will no longer be ‘hidden costs’ – prices cannot be advertised as ‘plus on-road costs’, for example.

Advertising must include dealer preparation and delivery charges, as well as registration, stamp duty and third-party insurance fees.

Stamp duty and CTP

These costs differ in each State. For example, stamp duty in Victoria is 2.5 per cent for vehicles up to $57,009 while in NSW it is 3 per cent for vehicles up to $45,000. Stamp duty also differs in South Australia, Tasmania, Western Australia and Queensland, where it is based on engine size.

Compulsory third party insurance also varies in each state and from suburb to suburb.

Dealer delivery

Dealer delivery is the cost a dealer charges for preparing a vehicle for sale. It can be as much as $5000 on some high-end European imports and upwards of $2000 for locally built cars.

This week many companies have removed any mention of prices in their print ads and websites so they don't run foul of the ACCC for non-compliance. Prices that are listed are "drive-away".

Car companies are working frantically to update their websites with full disclosure of prices, as well as the "hidden costs" that add up to $3000 to a $20,000 car in each State.

This will necessitate a redesign of each site's hardware to allow for price differences between states with different "on road" costs.

What you need to know

When shopping, car buyers must be given a single, drive-away price that includes the following.

1. The vehicle's purchase price;

2. stamp duty;

3. compulsory third party insurance (CTP); 4. Registration; 5. Dealer delivery fee.

The single price should relate to the featured model of the vehicle.

If a dealer or carmaker is advertising a new vehicle and the single price includes less than 12 months registration, this should be advertised clearly and conveyed to the consumer.

Any vehicle advertisement should be clear and there should not be any potential to mislead or misrepresent the vehicle in any way.

Differences in final cost

Sample vehicle: Ford Falcon XT sedan five-speed automatic (white) drive-away*

Melbourne: $41,740
Canberra: $42,462
Sydney: $41,500
Adelaide: $42,806
Hobart: $41,745.10
Brisbane: $42,256
Perth: $42,249
Darwin: $41,575
* Metro dealer, 12 months rego. Sample includes dealer delivery fee but does not allow for different fee between metro dealers