What Does Driveaway Price Mean?

what does drive away price include

The driveaway price typically covers the total cost of purchasing a car, incorporating expenses like the vehicle’s price, taxes (such as stamp duty and luxury car tax), compulsory insurance, registration, and sometimes, dealer delivery fees.

What Does Drive Away Price Include?

When you spot a ‘driveaway – no more to pay’ deal on a car, it’s more than just a catchy phrase. 

It means bundling essential expenses into that price tag, but it doesn’t cover everything. 

Let’s explore this deal and break down what it includes – and what it doesn’t – to help you understand the real costs behind buying a car in Australia.

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Understanding the Costs Included:

Stamp Duty:

  • Stamp duty changes depending on where you live in Australia. It’s a tax you pay when buying a car, and it changes based on the car’s price, whether it’s new or used, and how eco-friendly it is. 
  • In places like Victoria, lower emissions might get you a lower duty, while in the ACT, very low-emission cars might not need to pay at all.

Luxury Car Tax (LCT):

  • LCT is like an extra tax for cars that cost a lot. If your car price is over a certain amount, you’ll have to pay more tax. 
  • For example, on a $100,000 car, the LCT could be nearly $10,000. It’s a big extra cost for expensive cars.

Dealer Delivery:

  • Dealers might charge you for delivering the car to their showroom. This cost varies between car brands. 
  • It’s for things like bringing the car in, cleaning it, and checking if everything works. 
  • Sometimes, dealers might adjust this cost when you’re buying the car.

Registration and Compulsory Third-Party Insurance (CTP):

  • Before driving your new car, you need to register it and get compulsory third-party insurance. 
  • In some places, like Victoria, this insurance is included in the registration cost. This insurance helps cover medical costs if there’s an accident.

What’s Not Included:

Comprehensive Insurance:

  • The ‘no more to pay’ deal doesn’t cover comprehensive insurance. 
  • This type of insurance protects you if your car gets damaged, not just if someone gets hurt. 
  • It’s smart to get this insurance, especially for a new car.

Extra Considerations:

  • Beyond what’s covered in the driveaway price, think about other costs like fuel (make sure there’s enough in the tank), upcoming registration fees, and regular servicing. 
  • Also, consider getting comprehensive insurance for added protection.

Navigating the Fine Print:

The ‘driveaway – no more to pay’ deal seems simple, but it’s more than what meets the eye. 

While it covers some important things, it doesn’t include everything.

Understanding these costs helps you make informed decisions about buying a car.


The allure of a ‘no more to pay’ deal is inviting, but it’s essential to see beyond the advertised price. 

Being aware of what’s included and what’s not allows you to plan and budget for the additional expenses that come with owning a car in Australia

Remember, being prepared is key to a smooth car-buying experience.