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 AVOIDING TRICKS AND SCAMS

Most car dealers try to do the right thing, but unfortunately there are some who make use of a wide range of scams and tricks to dupe people into paying too much.

Common scams and tricks car buyers should be aware of include:

  • The Bait and Switch — A dishonest dealer will advertise a super discounted new car for sale that does not actually exist. This ‘bait’ attracts potential buyers to visit the dealership, where the salesperson informs them the advertised vehicle is no longer available. The ‘switch’ occurs as the potential buyers are coaxed into looking at more expensive models the dealer has in stock.
  • Dealers Offering Low Financing — When some car dealers in Australia advertise incredibly generous finance deals, the purchaser will find themselves buying the vehicle at full retail price. There certainly won’t be any discount on a new car which is purchased using the dealer’s finance. The dealer will naturally offset any loss brought on by his generous finance offer, so it is best to have your financing provided by a reliable third party and aim for a new car discount from the dealer.
  • Demo Models — A dealer will advertise what looks like a discounted new car which is in fact a model that has been used for demonstration purposes. While the kilometres on the odometer may still be low, a potential buyer will need to be careful as the warranty may have already began, technically making them the second registered owner. Dealers can claim a demonstration bonus from manufacturers, allowing them to sell these vehicles at low prices.
  • The Build Date — When buying a car, it’s wise to check that the build date is the same year as the compliance plate. For example, a car may have a ‘March 2013’ compliance plate, but it could have been made during the latter part of the previous year. This makes it a 2012 model, irrespective of what the salesperson may tell you.
  • Odometer Fraud — Unscrupulous dealers can tamper with a car’s indicated kilometres by using inexpensive software and devices made for recalibrating defective odometers.

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CALCULATING ON ROAD COSTS

When using our car buying service, you’ll have the added benefit of paying fewer on-road costs. This is because you’ve purchased the vehicle at a fleet rate, which is considerably cheaper than what dealers can offer.

Many on-road costs, such as stamp duty and luxury car tax, are based on the vehicle’s price — so if you pay less for the car, it also means you will pay less in costs. Buying a new car through  Car Buyers Direct also means you’ll be able to save on dealer pre-delivery charges.

Read on for more details about on-road costs and how they impact the final price of your new car deal.

Dealer Pre-Delivery Charges
A dealer pre-delivery charge (also known as a dealer delivery) is a fee that covers any detailing and prep work prior to the owner taking delivery of a vehicle.

Charges vary according to the type of vehicle. For example, the pre-delivery charge for a Toyota  Camry usually costs around $1,700. A prestige vehicle like an Audi might be twice that amount, while a sports car such as a Porsche , AMG Mercedes or a BMW M Sport will be charged around $6,000.

Depending on the manufacturer, National Car Brokers can get a pre-delivery charge discount for customers because we buy at fleet prices, not dealer retail prices.

Stamp Duty
Stamp duty is payable when ownership of a motor vehicle is transferred from one person to another. It varies in each state and territory. In New South Wales, the stamp duty is 3 per cent of the vehicle price (inclusive of GST) up to $45,000, then 5 per cent for every dollar above this. In South Australia, stamp duty is $60 for the first $3,000 of the purchase price, then 4 per cent for every dollar over this figure.

Speak with one of our expert Business Managers to discuss  how much you may need to pay. 

Thanks to the internet, buying a new car is a much easier and better informed process than ever. We now have access to masses of information (both good and bad) at our finger tips, and the ability to securely purchase a vehicle online.

But despite these technological advantages, there have always been some fundamentals that assist in successfully purchasing a vehicle such as:

  • Make sure you know what you want in -Car Buyers Direct can help you with your vehicle selcection if your not sure .
  • Keep within your budget
  • Test drive a few vehicles to ensure you’re comfortable in a vehicle that suits your needs
  • Have reasonable expectations
  • Maintain your common sense
  • Always be money wise
  • Get a Correct Valuation from one of our expert buyers  as a guide for your trade in to compare what the dealers offer you.

With the above knowledge, there are several ways to go forward with buying a new car in Australia. For most buyers, the final decision usually comes down to two things — what is the cheapest and most stress free option.

Stamp duty for cars explained 

When you go to buy a new or used car, you will have to pay stamp duty. But what is it, and how much does it cost?

Stamp duty is a tax levied by state governments on official documents. It is generally payable on the purchase of motor vehicles and other things such as land or shares.

It is a one-off tax paid when transferring ownership, like when buying a new or used car from a dealer or privately.

Rates of stamp duty differ across all Australian states and territories, so look below to see what you’ll have to pay in the state where you are.

New South Wales

Stamp duty is based on either the market value of your car, or what you paid for it – whichever is greater.

Price paid:$44,999 or less$45,000 or more
Duty payable:$3 for every $100 or part of $100 $1350 plus $5 per $100 or part of $100
 

Queensland

Stamp duty rates in Queensland are based on the engine type of the car you are buying or how much you paid for it.

 Under $100,000Over $100,000
Hybrid and electric vehicles$2 per $100 or part of $100$4 per $100 or part of $100
1 to 4 cylinders, 2 rotors or a steam vehicle$3 per $100 or part of $100$5 per $100 or part of $100
5 to 6 cylinders, 3 rotors$3.5 per $100 or part of $100$5.50 per $100 or part of $100
7 or more cylinders$4 per $100 or part of $100$6 per $100 or part of $100

 

South Australia

For private vehicles, the rates of stamp duty in South Australia are based on the price of the car.

Price paid:Up to $1000$1001 – $2000$2001 – $3000More than $3001
Duty payable:1 per $100 or part of $100, with a minimum payment of $5$10 plus $2 per $100 or part of $100$30 plus $3 per $100 or part of $100$60 plus $4 per $100 or part of $100

For commercial vehicles, the same rates apply up to $2000. If the value of the vehicle exceeds $2000 the rate of stamp duty is $30 plus $3 per $100 or part of $100 over $2000.

The SARevenue website has calculators available for both private and commercial vehicles.

Tasmania

Stamp duty rates for the Apple Isle are based on the vehicle’s market value.

Price paid:Up to $600$600 – $34,999$35,000 – $39,999$40,000 and over
Duty payable:$20 flat rate$3 per $100 or part of $100$1050 plus $11 per $100 or part of $100$4 per $100 or part of $100

Victoria

In Victoria, different stamp duty rates apply depending on whether the car you are buying is new or used and is charged on either the market value of the car or the purchase price (whichever is greater).

 New or ex-demoUsed
Price – up to $66,331$8.40 per $200 or part therof$8.40 per $200 or part therof
Price – over $66,331$10.40 per $200 or part therof$8.40 per $200 or part therof

Non-passenger vehicle – New vehicle: $5.40 per $200 or part therof – Used vehicle: $8.40 per $200 or part therof.

Unlike some other states, the stamp duty is collected by the dealer, whereas if you are buying privately it is paid directly to VicRoads by the purchaser.

Western Australia

WA charges stamp duty based on the ‘dutiable value’ of the vehicle, which is either the manufacturers’ list price (for new vehicles) or a reasonable market value (for used cars).

Price paid:Up to $25,000$25,001 – $50,000Over $50,000
Duty payable:2.75% of price R% of the dutiable value where R = [2.75 + ((dutiable value – 25000)/6666.66)]6.5% of price

To demonstrate the $25,001 – $50,000 brakcet: For a new vehicle with a value of $30,000 this would be [2.75 + ((30000 – 25000)/6666.66)] which equals 3.5%. Therefore the duty payable is 3.5% of $30,000 or $1050.

The WA Department of Finance has a stamp duty calculator available here.

Australian Capital Territory

In the ACT, stamp duty is based on a combination of a car’s price and how it is rated by the federal government’s Green Vehicle Guide.

Cars are broken up into four classes: A, B, C, and D. Class A is for the “greenest” models and Class D is the other end of the spectrum. Cars not rated by the Green Vehicle Guide are classified as Class C.

Green vehicle Class:Class AClass BClass CClass D
Price up to $45,000:No stamp duty payable$1 for every $100 or part of $100 of the dutiable value$3 for every $100 or part of $100 of the dutiable value$4 for every $100 or part of $100 of the dutiable value
Price over $45,000:No stamp duty payable$450 plus $2 for every $100 or part of $100 of the dutiable value$1350 plus $5 for every $100 or part of $100 of the dutiable value$1800 plus $6 for every $100 or part of $100 of the

Northern Territory

For cars in the Northern Territory, stamp duty is calculated at a rate of 3 per cent of the dutiable value of the vehicle plus a $17 transfer of ownership fee.

A stamp duty calculator is provided by the NT Department of Treasury and Finance here.