Money Hack: Go green and save on car rego
How driving an electronic or hybrid vehicle can help you save in both the short and long term.
Car registration is an unavoidable expense. Along with your compulsory third party (CTP) car insurance, it's something that every car owner in Australia has to buy. But what if there was a way you could pay less for this mandatory expense?
If you're buying a new car, you might want to opt for a green vehicle instead of one that guzzles fossil fuel. Not only will it stop you from being a slave to the petrol pump, depending on where you live you might be entitled to a discount on your car's registration.
For example, if you drive a gas or electric vehicle (EV) in our nation's capital, you're entitled to a 20% discount on your rego. This 20% discount is only applied to the registration cost, so you'll still have to pay full fare for your CTP and other on road taxes.
In New South Wales, vehicles with low carbon dioxide (CO2) emissions are classed as "lower-taxed vehicles". In Victoria, if you drive a hybrid or an EV you're entitled to a $100 discount on your vehicle's registration.
Granted, your initial outlay on a hybrid or EV is likely to be more than if you were to opt for a traditional car but it could end up saving you in the long run, according to a cost comparison of electric vehicles by the Queensland Government:
|Item||Electric vehicle cost||Fossil fuel vehicle cost|
|Comparable vehicle cost||$45,000||$35,990|
|Vehicle registration duty||$900||$1,080|
|Electricity cost ($/kWh)||$0.25||n/a|
|Fossil fuel cost ($/L)||n/a||$1.42|
|Annual fuel savings over 13,300km||$937|
|Stamp duty and registrations savings over 5 years||$566|
|Total operational savings in 5 years||$5,248|
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