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Oz - Why Is Car Rego So Expensive?  
User currently offlineSpringbok747 From Australia, joined Nov 2004, 4387 posts, RR: 10
Posted (4 years 3 months 4 days 9 hours ago) and read 6760 times:

So I received my car registration renewal today...get this..its $637 for 12 months! What the hell?! Why does it have to be so expensive? Last year it was $537, it has gone up by $100 in a year! Stupid car rego..

How are the annual fees like in your part of the world?


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14 replies: All unread, jump to last
 
User currently offlinefr8mech From United States of America, joined Sep 2005, 5360 posts, RR: 14
Reply 1, posted (4 years 3 months 4 days 9 hours ago) and read 6755 times:

Holy crap! I just registered the wife's car and it cost $71.00. Most of that was the tax. The actual registration was $14.00.


When seconds count...the police are minutes away.
User currently offlinethomasphoto60 From United States of America, joined Jan 2000, 3924 posts, RR: 23
Reply 2, posted (4 years 3 months 4 days 9 hours ago) and read 6746 times:

Here in Texas, on my Jeep, it is usually $55.00. It of course varies form county to county, state to state. I lived in OZ during the 90s and was shocked at the yearly rego fees that I paid on my 85 Holden Ute.

Thomas



"Show me the Braniffs"
User currently offlinecabso1 From Canada, joined May 2005, 502 posts, RR: 0
Reply 3, posted (4 years 3 months 4 days 8 hours ago) and read 6738 times:

Do you insure your car Springbok? Because you're exempt from insuring your car in Oz and NZ, compared to most of the world where insurance is mandatory. So it evens out.

In Singapore, it costs about SGD600 (~USD450) for a 2.0 Nissan Teana. Insurance is an additional SGD1300 or something, so apart from the hire purchase instalments, it costs nearly SGD2000 a year to keep a reasonably mediocre car.


User currently offlineqantas077 From Australia, joined Jan 2004, 5850 posts, RR: 40
Reply 4, posted (4 years 3 months 4 days 7 hours ago) and read 6722 times:

Quoting Springbok747 (Thread starter):
So I received my car registration renewal today...get this..its $637 for 12 months! What the hell?! Why does it have to be so expensive? Last year it was $537, it has gone up by $100 in a year! Stupid car rego..

it's called third party insurance.



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User currently offlineFly2HMO From , joined Dec 1969, posts, RR:
Reply 5, posted (4 years 3 months 4 days 7 hours ago) and read 6715 times:

Heh that's nothing. A new and otherwise "cheap" Jetta could cost close to $1000 a year in Mexico, though the cost goes down with age, and after 10 years you pay nothing.

I'm sure it's very expensive in most of the EU as well.


User currently offlineOzGlobal From France, joined Nov 2004, 2711 posts, RR: 4
Reply 6, posted (4 years 3 months 4 days 7 hours ago) and read 6706 times:

As mentioned by Qantas007, you are confusing two different items:

1. Registration = revenue collection

2. Mandatory 3rd Party Personal Insurance - covering cost of personal injury to others

This way you provide guaranteed cover others and avoid to a large extent creating an ambulance chasing legal sector.



When all's said and done, there'll be more said than done.
User currently offlineSpringbok747 From Australia, joined Nov 2004, 4387 posts, RR: 10
Reply 7, posted (4 years 3 months 4 days 6 hours ago) and read 6643 times:

Yeah..I'm aware that it includes CTP..but thats $300, the rest is the rego fees, which includes an "administration charge" of $100. What they hell are they administrating to charge $100?!


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User currently offlineryanair!!! From Australia, joined Mar 2002, 4751 posts, RR: 26
Reply 8, posted (4 years 3 months 4 days 6 hours ago) and read 6642 times:

Erm.... don't complain dude. In Singapore, you pay thereabouts for your rego for a year. On top of that, you pay for a piece of certificate which can cost up to AUD 20,000.00 which entitles you to drive your car for 10 years. I have not even factored in annual insurance payments yet...


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User currently offlineLtbewr From United States of America, joined Jan 2004, 13040 posts, RR: 12
Reply 9, posted (4 years 3 months 4 days 6 hours ago) and read 6641 times:

Quoting Springbok747 (Reply 7):
Yeah..I'm aware that it includes CTP..but thats $300, the rest is the rego fees, which includes an "administration charge" of $100. What they hell are they administrating to charge $100?!

What is CTP? Is that some minimum 3rd party insurance? I recall that some states of OZ have state run insurance schemes. I suspect the high registration fees were a policy to discourage private vehicle ownership and the importation of cars. I recall that until recent years, the tax on all new cars in Australia, especially imported models, were something like 20-30%

In the USA, the costs to register a car and certain taxes as to ownership of a car paid to state and local governments varies considerably. In my state, New Jersey, I pay about $47 a year for registration for a 2006 Mazda 6 (a/k/a Atenza). It is mainly based on year bands and car weight, not on engine size or pollution values, although that may change in the future. In New Jersey annual registraion ranges from about $32 to $60 problem is that someone could have a large 10 year old car and pay more than someone with a new $30,000 small car. Some states have registration fees based on the value of the car, you could pay $800 in some states for a new expensive BMW or M-B. Some states have a low basic registration fee but you also pay what we call a 'car tax', often based on the value of the car per published data and can range from $25 for old clunker to $1000 for an expensive new car.


User currently offlinemelpax From Australia, joined Apr 2005, 1592 posts, RR: 1
Reply 10, posted (4 years 3 months 3 days 22 hours ago) and read 6565 times:

Quoting Ltbewr (Reply 9):
What is CTP? Is that some minimum 3rd party insurance? I recall that some states of OZ have state run insurance schemes. I suspect the high registration fees were a policy to discourage private vehicle ownership and the importation of cars.

CTP covers personal injury suffered from road accidents, the government-run TAC scheme in Victoria covers rehabilitation, lost income & compensation for injuries caused by road accidents. So a lot of those sort of cases are kept out of courts here. The TAC also funds most road safety campaigns as well. In other states, you can shose who your CTP insurer is, the TAC is the only CTP insurer in Victoria.

'Normal' car insurance here would be around 6-700 dollars a year, depending on the car.

Link to the Victorian TAC

http://www.tac.vic.gov.au/jsp/corporate/homepage/home.jsp



Essendon - Whatever it takes......
User currently offlinebill142 From Australia, joined Aug 2004, 8440 posts, RR: 8
Reply 11, posted (4 years 3 months 3 days 21 hours ago) and read 6552 times:

Quoting Springbok747 (Thread starter):
So I received my car registration renewal today...get this..its $637 for 12 months! What the hell?! Why does it have to be so expensive? Last year it was $537, it has gone up by $100 in a year! Stupid car rego..

Do you have a choice in your TPI insurer? In the ACT we don't and I paid about $750 for my car.


User currently offlineSpringbok747 From Australia, joined Nov 2004, 4387 posts, RR: 10
Reply 12, posted (4 years 3 months 3 days 19 hours ago) and read 6516 times:

Quoting bill142 (Reply 11):
Do you have a choice in your TPI insurer? In the ACT we don't and I paid about $750 for my car.

I 't think so..its with Allianz..the other one is RAA insurance (I think)...but in any case can't see it becoming any cheaper than the current insurance.



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User currently offlinegemuser From Australia, joined Nov 2003, 5621 posts, RR: 6
Reply 13, posted (4 years 3 months 3 days 18 hours ago) and read 6486 times:

Quoting Ltbewr (Reply 9):
What is CTP? Is that some minimum 3rd party insurance?

It is Compulsory Third Party insurance. It covers you for damage done to OTHER people and property, by your car. It is required in all states. The details vary. In NSW it is run by ordinary insurance companies, other states do it differently.


Quoting Ltbewr (Reply 9):
I recall that until recent years, the tax on all new cars in Australia, especially imported models, were something like 20-30%

What do you mean "until recent years"? There is a 22.5% specific sales tax on cars, as opposed to the 10% General Sales Tax. Is it being scaled down? I don't remember anything about that.

Gemuser



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User currently offlinebill142 From Australia, joined Aug 2004, 8440 posts, RR: 8
Reply 14, posted (4 years 3 months 3 days 17 hours ago) and read 6482 times:

Quoting gemuser (Reply 13):
What do you mean "until recent years"? There is a 22.5% specific sales tax on cars, as opposed to the 10% General Sales Tax. Is it being scaled down? I don't remember anything about that.

There is the luxury car tax on top of GST for cars over $57000.


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