This investigation will show you how to use a spreadsheet (with Google sheets) to compare prices of cars and running costs.
Stamp duty
Whenever we register a new or used car in our name, we will need to pay a one-off levy or tax to the state government. This is known as stamp duty, and in QLD, it is collected by Roads and Maritime Services on behalf of the Office of State Revenue.
The amount of stamp duty paid depends on the value of the vehicle. Usually this is the purchase price, but for some used cars, it is the vehicle's market value (i.e. what the vehicle is actually worth).
Rates for stamp duty differ across all Australian states and territories.
In QLD, stamp duty is determined based on the car's engine and cost:
| Type vehicle | Stamp duty payable |
|---|---|
|
Up to \$100000 to \$2 for each \$100, or part \$100.
More than \$100000 to \$3 for each \$100, or part \$100. |
|
Up to \$100000 to \$3for each \$100, or part \$100.
More than \$100000 to \$5 for each \$100, or part \$100. |
|
Up to \$100000 to \$3.50 for each \$100, or part \$100.
More than \$100000 to \$5.50 for each \$100, or part \$100. |
|
Up to \$100000 to \$4 for each \$100, or part \$100.
More than \$100000 to \$6 for each \$100, or part \$100. |
Note: In the table, stamp duty is calculated on every \$100, or part thereof. This means we may have to round the vehicle's value up to the next \$100, to account for the part thereof (part of \$100).
Vehicle registration
Registering a vehicle ensures it is roadworthy and identifiable. In QLD, all vehicles including caravans, trailers, and motorcycles must be registered with the Department of Transport and Main Roads (TMR).
Registration is valid for one year. Most of the annual cost of registration is a motor vehicle tax, based on the tare (unladen) mass of the car. The greater the car's mass, the higher the tax.
This table from the TMR outlines the motor vehicle tax for various engine types (as of 16 September 2024).
| Engine type | Annual cost |
|---|---|
| Vehicle 1, 2 or 3 cylinders, electric or steam | \$226.80 |
| Vehicle 4 cylinders | \$288.45 |
| Vehicle 5 or 6 cylinders | \$456.75 |
| Vehicle 7 or 8 cylinders | \$639.65 |
| Vehicle 9 or 12 cylinders | \$750.20 |
| Motorcycle | \$108.95 |
Activity 1: Comparing purchase costs
- Use the internet to research three different cars that you would like to purchase one day.
- In a spreadsheet record their model, purchase price, and the annual insurance cost. All of which you should be able to look through the company's website. An example is shown here:
- Then add columns for Stamp Duty, Registration and Total cost.
- To identify the stamp duty, if the purchase price of the car is less than \$45\,000, you can just multiply the purchase price by 0.03 as shown:
- If the purchase price is more than \$45\,000, you can add \$1350 and 5\% of the difference between the purchase price and \$45\,000 as shown:
- Identify the weight of your chosen car and add the registration cost according to the registration table to the spreadsheet.
- To determine the total add up all the values to column F:
- Do these steps for all three cars that you have chosen. Then determine which car is the cheapest altogether.
Activity 2: Running Costs
Now that you have chosen the car that is the cheapest it is time to consider the running costs.
- Create a spreadsheet like the one shown and use the internet to research the current cost of each item. The cost of fuel, service, tyres, and road-side assistance may depend on the car you have chosen.
- Assume that you will do these over the next year:
- Get your car serviced twice.
- Buy one spare tyre.
- Drive through tolls twice per week. (Assume there are 52 weeks in a year)
- Use road-side assistance once.
- Park at the local shops once per week.
- Use 50 litres of fuel per month.
- Use your spreadsheet to calculate the total running cost for your car over the year. Remember to start all your formulas with
=and use*for multiply. An example is shown here:
- Do the same for the other two cars that you chose in Activity 1.
- Does the car with the cheapest purchase price also have the cheapest running cost?