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What Does Drive Away Price Include In Australia?

what does drive away price include

The drive-away price typically includes the vehicle’s cost along with essential on-road expenses like stamp duty, registration, and compulsory insurance, and often covers dealer delivery charges.

Things included in Drive Away price

The allure of “drive away, no more to pay” offers at car dealerships can be enticing, promising a hassle-free purchase experience. 

However, diving deeper into what exactly constitutes this sticker price is vital for Australian consumers to make informed decisions about their car purchases.

Unpacking Stamp Duty:

Stamp duty is an inescapable expense incurred during vehicle registration.

Calculated based on the vehicle’s dutiable value, it hinges on the list price for new cars or the market value for used vehicles, accounting for any additional accessories at the time of purchase. 

This means that regardless of dealership negotiations or registration transfers, stamp duty remains a constant calculated cost.

The duty calculation involves a rate per $100 of the vehicle’s dutiable value, varying based on the vehicle type. 

For instance, a used hybrid car valued at $18,990 would attract a stamp duty of $380. 

On the other hand, a new 4-cylinder diesel car priced at $47,990, accompanied by $3,000 worth of additional accessories, would result in a stamp duty of $1,530.

Drive Away Pricing and Stamp Duty:

One advantage of drive-away pricing is its inclusive nature, folding the stamp duty cost into the overall price tag. 

This simplifies the buyer’s budgeting process, eliminating the need for intricate calculations of on-road costs.

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Understanding Dealer Delivery Charges:

Dealer delivery charges encompass a range of preparatory tasks necessary before a buyer can drive off with their vehicle. 

These tasks typically include detailing, final mechanical inspections, and the fitting of any accessories. 

Costs for dealer delivery typically range between $1500 to $2000. However, if a vehicle is transported from another dealership, these charges may escalate due to additional transit costs.

Insurance & Registration in Drive Away Pricing:

Drive-away pricing usually covers the fundamental costs associated with registering the vehicle and compulsory third-party insurance. 

This ensures that buyers are legally covered as they drive their new purchase off the lot. 

However, it’s crucial to note that this coverage might exclude certain elements, prompting the need for additional insurance purchases based on individual preferences and requirements.

Critical Consideration: Registration Duration

Delving into the fine print of drive-away pricing contracts is imperative. Notably, buyers should pay attention to the duration of registration offered. 

While most manufacturers provide a standard 12-month registration, some dealerships might only offer 6 months. 

This variation necessitates budget adjustments in the initial year of vehicle ownership.

Conclusion:

A comprehensive understanding of the components included in drive-away pricing empowers buyers to grasp the actual expenses factored into the sticker price. 

This knowledge allows for informed decision-making and ensures that consumers are fully aware of the real value behind the seemingly all-inclusive deal. 

Prioritizing a thorough review of the purchase contract ensures clarity and avoids unforeseen financial surprises post-purchase.