COSTS TO CONSIDER

Advertised price vs. driveaway

Before 2009, a dealer’s advertised price often didn't match the driveaway cost. These days, dealers must advertise a single total price, so you know exactly what you're paying for.

One total price

 

In May 2009, the ACCC (Australian Competition and Consumers Commission) introduced new regulations under the Trade Practices Act which stipulate that car dealers must list all the costs of buying a new vehicle in their advertising and provide a single cash, or 'driveaway', price. This single price must be clear at the time of the sale and displayed prominently.

Some dealers will still include a breakdown of the price components as well, and there can be additional costs if you have special requests. But the driveway price must be the same as the one that's advertised.

What the driveaway price includes

The price advertised by the car dealer should include the following components:

  • Car purchase price
  • Stamp duty
  • Compulsory third party insurance (CTP)
  • Registration
  • Dealer delivery fee (specifying if any additional regional/delivery fee applies)
  • It is worth noting that stamp duty, CTP and registration costs will vary from state to state.

What it may not include

If you live in a regional area, or the car requires additional preparation work to meet your requests, there may be a variation on the dealer delivery fee.

If you've decided to order any accessories or optional extras, these will be added onto the drive-away price.

Handy things to know

 

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

There are also new rules around the photographs of cars which appear in ads. The ACCC states that an image shown must match the correct specifications of the car a buyer would get for the advertised price.