The hidden costs of buying a car
The hidden costs of buying a car
Buying a car costs more than the purc hase price. When calculating how much you can afford to spend, you should consider additional costs, such as:
- stamp duty or transfer fees;
- registration costs (including a compulsory TAC premium, which insures you and others for death or injury if your car is involved in an accident);
- a Royal Automobile Club of Victoria (RACV) or Victorian Automobile Chamber of Commerce (VACC) inspection of the car to test its mechanical soundness;
- any optional extras you might want;
- costs associated with borrowing money to buy a car;
- insurance premiums;
- fuel, spare parts and repairs; and
- RACV membership. If you need to borrow money to buy a car, you should shop around because different lenders offer different products. Always check the fees and charges payable, plus the interest rate and whether it is fixed or variable. NOTE For more information on finance contracts and related insurance, see Chapter 5.7: Understanding credit and finance.
