Car Affordability Calculator Australia

Last updated: May 2026. Reflects current Australian metrics.

Work backwards from your monthly budget to find the exact car you can afford. We automatically factor in Australian on-road costs, stamp duty, and the luxury car tax threshold.

Budget & Finance Details

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Maximum Car Price

The actual sticker price you can afford

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Max Loan Amount $0

Purchase Breakdown

Car Sticker Price $0
Estimated Stamp Duty (Avg 4%) $0
Est. Rego, CTP & Dealer Delivery $2,500
Total Upfront Cost (Drive Away) $0

The Hidden Costs of Buying a Car in Australia

When you see a car advertised for $30,000, you almost never pay exactly $30,000. Unless the car is explicitly advertised as "Drive Away", there are significant government and dealership fees added at the point of sale. Our calculator reverses these costs to tell you the sticker price you should be looking for.

Australian On-Road Costs

1. Stamp Duty: Just like buying a house, you must pay state government stamp duty when transferring a vehicle into your name. While it varies by state, it is typically between 3% and 5% of the vehicle's market value.

2. Registration and CTP: Compulsory Third Party (CTP) insurance (also known as a Green Slip in NSW) and 12 months of state registration usually total between $800 and $1,200 depending on your vehicle's engine size and your driving record.

3. Dealer Delivery Fee: If buying brand new, dealers charge a fee (often $1,000 to $2,000) to prepare the car, clean it, and manage the paperwork.

Luxury Car Tax (LCT)

In Australia, the ATO imposes a Luxury Car Tax on vehicles exceeding a certain threshold (around $76,950 for standard vehicles and $89,332 for fuel-efficient vehicles in the 2026-2026 financial year). LCT is charged at a massive 33% on the amount above the threshold. If your budget places you in this bracket, your purchasing power drops sharply.

Related Calculators

Car Repayments Novated Lease Balloon Payments

Learn more about car finance at ASIC MoneySmart.

10 Frequently Asked Questions

1. What is a balloon payment?
A balloon payment is a large lump sum due at the end of your car loan term. It reduces monthly repayments but increases total interest paid.
2. Secured vs Unsecured car loans?
Secured loans use the car as collateral and offer lower rates. Unsecured loans do not tie the car to the loan, but have higher interest rates.
3. What is a novated lease?
A novated lease is an arrangement between you, your employer, and a finance company where loan repayments and running costs are paid from your pre-tax salary.
4. What is a PPSR check?
The Personal Property Securities Register (PPSR) check ensures a used car doesn't have money owing on it before you buy it.
5. Are dealer finance rates better?
Dealer rates like 1% often hide costs in the car's purchase price. Always compare the total cost against a bank loan.
6. Can I pay off my car loan early?
Yes, but check for early exit or break fees in your contract, especially for fixed-rate car loans.
7. Does the comparison rate matter?
Yes, it includes upfront fees and monthly account keeping fees, showing the true cost of the loan.
8. What is Fringe Benefits Tax (FBT)?
FBT applies to novated leases, but you can offset it using the Employee Contribution Method (ECM).
9. How do trade-ins work?
A trade-in reduces the total amount you need to borrow, thus reducing your monthly repayments and total interest.
10. Should I finance over 3 or 5 years?
A 3-year term costs less in total interest but has higher monthly payments compared to a 5-year term.