When buying a car, the driveaway price provides the most accurate cost to get it on the road. But what exactly does this price include?
Understanding the Driveaway Price
The driveaway price of a car encompasses various fees and charges that are often not included in the retail price. It is important to know the total driveawayprice as this is how much you will need to pay for the vehicle to ensure complete transfer of ownership. At Rumo Finance, we specalise in car finance and can help on the journey to buying a luxury, performance or prestige car.
The additional on-road costs for a car can include:
Luxury Car Tax (LCT)
Applicability: Required if the vehicle's price exceeds a certain threshold.
Thresholds for 2022-23: $84,916 for fuel-efficient vehicles and $71,849 for others.
Calculation: Charged at 33% on the amount over the threshold. For example, on a $100,000 vehicle, the LCT would be approximately $9,742.50.
Dealer Delivery Fee
Variation: Varies between dealers and brands.
Coverage: Includes costs for sourcing, preparing, and holding the car.
Stamp Duty
Variability: Depends on the state, vehicle segment, and whether the car is new or used.
Example (NSW): $3 per $100 of the vehicle’s value, plus additional charges for vehicles over $45,000.
Registration and Compulsory Third Party (CTP) Insurance
Inclusion: Generally included in the driveaway price.
Purpose: Covers registration and basic insurance required by law.
Additional Car Buying Considerations
While the driveaway price covers essential fees and charges, there are some additional costs to consider:
Comprehensive Car Insurance: Not included in the driveaway price but necessary for full coverage.
Fuel or EV Charge: Ensure the vehicle is delivered with a full tank or charge.
Ongoing Costs: Be prepared for ongoing expenses like registration renewals and servicing.
Rumo Finance: Your Partner in Car Financing
At Rumo Finance, we specialise in providing tailored car loans for both personal and business use. Our Melbourne-based team is dedicated to helping you maximise your budget and savings. Contact us now for prompt assistance – it only takes a minute.
With the right financial partner, navigating the complexities of car purchasing becomes easier. Trust Rumo Finance to guide you through every step of the process, ensuring you get the best deal and drive away with confidence.