step 1

Costs before you buy

These costs will apply more to you if you’ve got a used car in your sights.

  • Vehicle inspection – You may consider yourself a bit of a rev-head, or you may be mechanically challenged. Either way, having a professional give the car you intend to buy a once over can be a good idea. If you’re a member of your state or territory’s motoring club, you may even be able to get this inspection done at a discounted price.
  • Car History & Finance – If you want to be extra vigilant, the Personal Property Securities Registry can conduct searches into whether the vehicle owner still owes money on the car, for a small fee.
step 2

Costs of buying

  1. Purchase Price

    Your biggest expense of the whole process. Be sure to work out what type of car you can afford, and not to get in over your head.

    Remember, a new car will cost you more upfront (by and large), but will be cheaper to insure. A used car may set you back less, but may require more in maintenance over time.

    Use our Repayments Calculator

  2. Stamp Duty

    Whether you’re buying new or used, Stamp Duty is a large, one-off payment, which is a percentage of the purchase price of your car. This payment goes to your state or territory government, and will be different depending on where you live.

    Some new cars may offer deals which include stamp duty as part of the purchase price.

    To calculate the stamp duty in your state, click on the correct link: NSW, QLD, ACT, VIC, SA, TAS, WA.

step 3

The Right Cover

Now that you’re ready to get behind the wheel, make sure you don’t leave yourself vulnerable to the unexpected.

  1. CTP Insurance

    Compulsory Third Party Insurance (green slip, as it’s known in NSW) is required for all vehicles in all states within Australia. It covers the driver against legal liability in the event of death or injury caused by an accident for which the insured driver is responsible. It’s not possible to register your car without it.

  2. Car Insurance

    CTP, while compulsory, won’t cover you for damage caused to you or anyone else’s car or property. To cover yourself against incidents such as fire, theft and accidents, additional Car Insurance can give you peace of mind on the road.

step 4

Ongoing Costs

Once you’re out and about in your new ride, you’ll still need to consider some of the regular ongoing costs of keeping a car on the road, and factor these into your budget.

  1. Roadside Assistance

    Something you hope you’ll never need to use, but comes in handy at just the right time. This can be arranged as part of your car insurance, and ensures you’ll never be left stranded.

  2. Registration

    A fairly large cost each year. Your registration must be renewed each year to allow you to drive your vehicle on your state or territory’s roads.

  3. Running Costs

    The nuts and bolts of keeping a car on the road. Whilst not large costs in themselves, they are regular and can add up. Think petrol, tolls, servicing, tires, and any loan repayments if your vehicle is under finance.