Commonly used terms by New & Used car dealerships
When deciding to buy your next car, you may not have heard the different terms and acronyms used by dealerships. DVG Online has made this page to help you understand ‘jargon’ used and commonly used industry terms.
Recommended Retail Price/ RRP - Recommended Retail Price is the set price for a brand new cars set by the manufacturer. The RRP excludes any government or dealer charges which are commonly referred to as On Road Costs.
Drive Away Price / DAP - The Drive Away Price is the total cost to you(the purchaser) for a brand new car including all On Road Costs.
On Road Costs / ORC - On Road Costs are the combined additional costs to you (the purchaser) on top of the RRP of a car. They consist of Dealer Delivery and Government Charges.
Dealer Delivery (applicable to new cars) - Dealer Delivery is the cost of bringing the car to the dealership and fitting necessary instruments and accessories not yet assembled by the manufacturer to make it fit for sale. This cost varies depending on the brand of vehicle and where it is sourced from.
Government Charges (applicable to new & used cars) - There are several charges for buying new and used cars in WA that the government require you to pay.
• New cars–You are required to pay Stamp Duty, Transfer Fee and a minimum of 6 months License Fee.
• Used/second hand car - You are only required to pay Stamp Duty & Transfer Fee as the dealership used cars are already licensed and will become your responsibility to pay once renewal is required.
Stamp Duty & Transfer Fee - Stamp Duty is a government tax on buying a new or used/second hand car. The Transfer Fee is simply a charge for transferring the car into your name. Stamp Duty & Transfer Fees can be calculated using the purchase price of your car. See the Department of Planning & Infrastructure to get an idea of what you will be required to pay.
License Fee - License Fee is applicable to all vehicles registered to drive on WA roads. When buying a new car, it is payable on purchase as it has never been licensed before. As mentioned earlier, when purchasing a used/second hand car, any remaining time from the dealership or previous owner is rolled over to you upon Stamp Duty and Transfer Fee payment. You do not have to pay a license fee until it expires.
The easiest way to check how much license is remaining on a dealership used/second hand car is to check the license sticker on the left hand side of the windscreen. This sticker displays the month and year when the vehicle license expires.
Trade In/Valuation - A Trade In vehicle is a car you wish to sell/swap with the dealer when purchasing a new/used car from them. The Valuation is simply the amount that the dealer is willing to offer you for your trade in vehicle.
Changeover Price - The Changeover Price is the additional cost to purchase a vehicle after Trade In. In other words, its the difference in cost of the car being purchased, and the value of the trade in.
Pinky Price - The Pinky Price is the price as listed on the vehicle's "Pink Slip" which states all the details of the vehicle that is for sale.
Payout Figure - The Payout Figure is the difference between what is owed on a vehicle and the trade in valuation. If a trade in vehicle has more money owed on it than the Trade In Valuation, there will be a Payout Figure which will need to be added to the cost of the vehicle being purchased.
REVS Check - A REVS Check is completed on all Trade In vehicle's and any used car purchased by the dealership. It is a simple database check to ensure that there is no money owed on the vehicle being purchased.