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AUSTRALIAN CAR-BUYING COSTS

Dealer Fees, Add-ons and Warranties

Separate the vehicle price from dealer delivery, accessories, protection products, warranties and finance-linked add-ons before signing.

Scott IriksFounder, BaseRate
Reviewed Aug 20269 min read
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General information only: Tax, registration, insurance and credit rules can change. Confirm the current position with the linked government authority and your finance or insurance contract before acting.

Quick answer

A dealer order can include delivery, accessories, paint or interior treatments, service plans, extended warranties and insurance products. Some are part of the vehicle specification; others are optional. Require an itemised cash and finance price so each product can be accepted or rejected separately.

Why this matters when financing a car

Adding optional products to the loan increases the amount financed and interest paid. The financier may not attribute the same value to those additions, which can increase LVR and the deposit required.

Start with two clean numbers

Ask for the vehicle’s itemised cash price and the complete drive-away price before discussing repayment. Then obtain a separate finance structure showing deposit, amount financed, rate, comparison rate, fees, term, balloon and total repayments.

This prevents a lower repayment from hiding a changed vehicle price, longer term, balloon or financed add-on.

An extended warranty does not replace consumer guarantees

Australian Consumer Law provides automatic consumer guarantees for cars purchased from a licensed dealer where the law applies. Manufacturer and extended warranties are additional promises and cannot remove those automatic rights.

Before buying an extended warranty, check the claim limits, exclusions, servicing conditions, nominated repairer, transferability and whether it provides benefits beyond existing legal and manufacturer protections.

Calculate the financed cost, not only the sticker price

A $2,000 optional product financed for five years costs more than $2,000 once loan interest is included. It can also remain payable after the product has little resale value or the car is sold.

  • Ask whether every line is mandatory or optional
  • Request the cash price of each optional item
  • Read cancellation and refund terms before signing
  • Check whether the premium or fee is financed
  • Compare the benefit with existing insurance, warranty and consumer rights

Cooling-off and statutory warranty rules are not national

State and territory rules can differ by new or used status, dealer or auction channel and vehicle age or kilometres. Do not assume there is a general cooling-off right. Check the local consumer-protection authority before signing an order or paying a deposit.

Why a financed add-on costs more than its cash price

Assume a $2,000 optional product is added to a five-year car loan at an illustrative 7.99% p.a., with monthly repayments and no extra fee.

  1. Cash price of the add-on: $2,000.
  2. The add-on becomes part of the interest-bearing loan balance.
  3. At the illustrative assumptions, the repayments attributable to that $2,000 total about $2,433 over five years.

Result: The illustrative financing cost is about $433 above the cash price. The product should be judged against its financed cost and actual benefit, not the monthly increment alone.

Primary sources

Government and statutory sources checked on 8 August 2026:

See BaseRate’s editorial policy and the complete car-buying costs hub.

WRITTEN & REVIEWED BY

Scott Iriks

Scott Iriks is the Founder of BaseRate with more than two decades of experience in Australian financial services, including credit operations and executive leadership.

  • Founder, BaseRate
  • Credit Representative 580651 · ACL 383122
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