6 Hidden Costs When Buying a Car

Stamp duty is a state government tax that you pay when you buy a car in Australia, and the amount depends on your state, the car's price, and whether it's new or used. Before you buy, jump online and use your state's stamp duty calculator to see exactly what you'll owe.

Every car on Australian roads needs two things to be legal: registration (an annual fee to keep your car road-legal) and CTP insurance (which covers injuries to other people if you cause an accident). Both costs vary by state and, in the case of CTP, by insurer.

You can find registration fees on your state's transport website, and it's worth comparing CTP quotes from different insurers.

Keeping your car roadworthy means regular servicing, plus the occasional unexpected repair when something decides to break (usually at the worst possible time).

Here's what to keep in mind: new cars usually come with capped-price servicing for the first 3–5 years, so you'll know exactly what you're paying. Used cars, on the other hand, depend on age, brand, and condition – some are cheap to maintain, others… not so much.

Before you buy, consider asking for the service history, as well as doing a quick search on typical service costs for that model. And here's a pro move: consider setting aside a car maintenance fund so repairs don't catch you completely off guard. Future you will be grateful.

Next up is car insurance. We've already covered CTP insurance, but many car owners also choose comprehensive or third-party insurance to protect themselves and their vehicle.

Comprehensive car insurance covers damage to your car and others if you're involved in an accident, while third-party insurance only covers damage you cause to someone else's property – not your own car. The right choice depends on your car's value and your budget.

It’s worth getting multiple quotes, comparing what's actually covered, and reading the fine print, especially around excess and exclusions.

Fuel is likely to be one of your biggest ongoing costs, especially if you're commuting daily or doing a lot of driving. It can be helpful to check the car's fuel consumption and estimate what that might cost you per week or month based on current fuel prices.

If petrol prices are high (and staying that way), it might be worth considering an EV or hybrid for a more eco- and wallet-friendly option.

Depreciation is how much your car loses value over time. It's not a cost you pay directly, but it is money you lose because your car drops in value the moment you drive it off the lot.

Here's the thing: new cars typically lose a significant chunk of their value in the first year, while used cars tend to depreciate much more slowly because the big drop has usually already happened. If you buy new, you're more likely to wear that loss. If you buy used, you may avoid the steepest depreciation.

Some models and brands, like Toyota and Mazda, tend to hold their value much better as well, so if resale value matters to you, do your research on the right brands to buy.

Buying a car is exciting, but it's not just about the sticker price. From stamp duty and rego to fuel, insurance, and depreciation, the true cost of car ownership adds up fast. The good news? When you know what to expect, you can budget smarter, avoid nasty surprises, and make a decision that works for your wallet – not just your wish list. Do your homework, factor in the hidden costs, and you'll drive away with more confidence.

• VIC registration | VIC stamp duty

• NSW registration | NSW stamp duty

• QLD registration | QLD stamp duty

• SA registration | SA stamp duty

• WA registration | WA stamp duty

• TAS registration | TAS stamp duty

• ACT registration | ACT motor vehicle duty

• NT registration | NT stamp duty

Disclaimer: This content is for informational purposes only and does not constitute financial advice, nor should it be relied upon as such. Readers should seek independent professional advice tailored to their financial situation before making any decisions.