Drive-away price vs on-road costs — what you're actually paying

What does "drive-away" mean?

A drive-away price — also called a "drive-away, no more to pay" price — is the total, all-in price you pay to drive the car away. Nothing extra gets added at the end. What you see is what you pay.

This is different from a base or "ex-dealer" price, which is the car's price before the additional government charges and fees needed to legally register and transfer the vehicle to you.

What's included in the on-road costs?

When a price isn't stated as drive-away, the quoted figure will typically exclude some or all of these:

• Stamp duty — a state government tax calculated as a percentage of the vehicle's dutiable value. In WA, the rate varies depending on the value of the car. On a $35,000 vehicle, stamp duty is typically around $1,400–$1,600.
• Transfer fee — the Department of Transport fee to transfer the vehicle registration into your name. This is a fixed fee and is currently around $30–$55 in WA depending on the vehicle.
• Registration — if the current registration is short or has lapsed, you may need to pay for a period of registration upfront. A licensed dealer is required to sell you a roadworthy vehicle; registration is a separate question.
• CTP insurance (third party bodily injury) — in WA, compulsory third party insurance is included in the registration fee, so this is typically bundled rather than a separate line item.

Adding these up, the gap between a base price and the actual drive-away price on a $35,000 car can easily be $1,500 to $2,000 or more. That's a meaningful difference when you're budgeting.

Why it matters when comparing cars

When you're comparing two cars at similar prices, it's easy to be misled if one is quoted drive-away and one isn't. A car advertised at $33,990 drive-away might actually be cheaper than one at $33,000 "plus on-roads" once you factor in stamp duty and the transfer fee.

The only fair comparison is drive-away to drive-away. If a price isn't clearly stated as drive-away, always ask what the on-road costs are and add them to the quoted price before comparing.

What Australian Consumer Law says

Under Australian Consumer Law, dealers are required to advertise a single, clear price that includes all charges you're required to pay. It is not lawful for a dealer to advertise a low price and then add mandatory government charges as "extras" at the point of sale without disclosing them clearly upfront. You should never face a surprise at signing that wasn't clearly explained before you agreed to buy.

If a dealer presents charges you weren't told about before you committed, you have grounds to raise this under the ACL. In practice, reputable dealers advertise drive-away pricing precisely to avoid confusion — it's cleaner for everyone.

What about dealer fees?

Some dealers charge a "dealer delivery fee," "inspection fee," or similar. On a used car from a private lot, be cautious of these — they're often discretionary. Ask specifically what the fee covers and whether it's negotiable. The statutory on-road costs (stamp duty, transfer) are fixed by government; any dealer-specific charges on top are not.

Financing and the total cost

If you're financing the vehicle, remember that the amount you borrow will be based on the drive-away price, not the base price. Stamp duty is typically financed along with the car value. The longer the loan term, the more you pay in interest on that base amount — so understanding what you're actually borrowing from the start matters.

General information only, not legal or financial advice.