You might think that closing a deal and getting the car of your dreams simply involves handing over that cash to the seller. But think again. Whatever price you agreed together is just part of a series of payments you need to make to finalize the purchase. Because these costs quickly add up from a few hundred dollars to thousands, arm yourself with this information to help you stay within your budget.
Transfer of Registration
In new South wales, transfer of registration requires a minimal fee of $31. While in the state of Victoria, the same requirement would cost you about $36.40 if the transfer registration involves a private sale. Purchase your car from a dealer and the fee would cost only $18.50. In other part of the country, you pay lower amounts in general: about $22 in Queensland and $24.45 in South Australia.
In addition, keep in mind that some private sellers, in an attempt to save on renewal costs, put their used cars on sale just when the registration is about to expire or have already gone past the expiration date. This increases your financial burden as you in turn have to bear the renewal cost. Also, always be careful when registering the vehicle in different states because additional payments may be required, depending on the location.
Car Stamp Duty
Car stamp duty is another fee required by the government, the amount of which will vary according to the cost and the condition of the car when it was purchased. And it is only in special circumstances — such as transfer of registration from husband to wife, for example — that the payment of car stamp duty is not required. The amount varies because it becomes greater as the purchase price increases.
Luxury Car Tax
Yes, that flashy BMW or Lamborghini doesn’t come without a hefty price tag, be it the purchase price or what we call the Luxury Car Tax (LCT). In Australia, LCT amounts to 33% of the car’s value. The same amount is applied for imported cars that cost $62,000 and above.
Third Party Insurance
Just because you don’t see yourself driving your favorite car that often doesn’t mean you can opt-out of paying for third party insurance. Yes, it is compulsory whether or not you spend more time on the road. In fact, you need to secure this requirement even before you register your car, hence the need to include this to your list of expenses when buying a used vehicle.
Personal Property Securities Register (PPSR) Check
Obtaining the Vehicle Identification Number for PPSR check may not a mandatory requirement, but for just $36.95, you get all the information you need on the history of the used car before even buying it. By checking the VIN with PPSR, you will know whether the particular vehicle carries financial encumbrances, has been stolen or written off, or had undergone a major repair resulting from a serious accident.