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10 June 2016 · Hybrid

What is Drive Away Pricing?

There’s a lot of jargon in the automotive industry and sometimes we forget that people may not know some of the terms that we use every day. One of the most commonly used dealer terms is “drive-away”. So what does that mean?

New Vehicles:

When you are purchasing a new vehicle there are a few extra charges over and above the manufacturer’s list price of the car. These can include GST, Luxury Car Tax, Registration (number plate fees, registration itself, 3rd party insurance and other state charges), Stamp Duty, Transfer Fees, Dealer Delivery and transport charges. The good news is all of these costs will be clearly itemised when you purchase a new vehicle and are included in what we call the “drive away price”.

Used Vehicles:

The main thing to be aware of is that used vehicles are not subject to the same advertising regulations as new vehicles and hence the advertised price is not the “drive away price”.   Used vehicles are already registered and hence will have the balance of their existing registration.  However the advertised purchase price of the vehicle is still subject to stamp duty on top.

Stamp Duty:

The stamp duty on the used vehicle is calculated a sliding scale and is based on the purchase price of the car. It ranges from 2.75% through to 6.5% in Western Australia.

To calculate the stamp duty payable on your vehicle,  have a look here at the department of transport website.

When you buy a used vehicle from a dealer, you can pay this figure to the dealership at the time of purchase. Alternatively you can wait for the paperwork to come directly to you from the Department of Transport.

It’s worth mentioning that this applies to private sale vehicles as well as vehicles sold through a dealer. The only difference is the form. If you are selling your own car privately, simply head in to your nearest Australia Post shop first. They will have a section where you can help yourself to a variety of government forms and among them will be a ‘Change of Ownership’ form. There is also an online version if you have a printer handy ;