Looking to buy a brand new car, but not exactly sure what on-road costs are? Car dealerships vary from each other - with some offering an all-inclusive driveaway price, or a sticker price plus on-road costs, and those that offer extra services as part of the on-road costs.
We’ve got the A to Z on everything you need to know about NZ on-road costs before buying a car - so you can drive away happily, knowing exactly what you paid for.
What are On-road Costs?
On-road costs, or ORCs for short, are the charges for getting new vehicles, and overseas imports, ready to drive on our roads. Generally dealerships place the vehicle’s ‘For Sale’ sign and indicate the price of the car, with the ‘+ORCs’ at the end. These on-road costs typically include the standard NZ road registration costs, a Warrant of Fitness (WoF), tyre stewardship fee, as well as road user charges (RUC) for EV, diesel and PHEV hybrid vehicles, and a pre-delivery inspection to ensure it’s ready to drive.
Some dealerships offer extra services as part of their on-road costs, but it’s totally up to them to decide the terms and it can vary depending on whether it is a used import or NZ new. A grooming service, inclusion of floor mats, and topping up a full tank of petrol are a few examples of these extras.
How Much Should You Pay For On-road Costs?
How much you should be paying for your on-road costs isn’t set in stone, as it depends on the type of vehicle you’re looking to buy, and how the dealer packages up the cost of getting the car ‘road ready’.
On-road costs for NZ new vehicles with a 1 year registration, 3 year WoF and a full tank of petrol typically range anywhere between $1,000 to $1,600 - with most dealerships adding in a professional grooming service and a pre-delivery inspection. Used overseas imports usually come with a shorter registration period of 6 months, and the option to choose between a 6 or 12 month WoF with a grooming service.
The road user charges (RUC) for diesel vehicles factor in their weight and size, with most of them costing roughly $76 per 1,000km. If a battery electric vehicle is what you’re after, thanks to the extension of the light electric vehicle RUC, you won’t have to fork out your RUC costs until 31st March 2024. Whereas if you drive a petrol or mild hybrid vehicle, the road user charges are already included in the price of fuel.
What is an All-inclusive Strategy?
Some car brands are moving away from separating the retail price and the on-road costs. Instead, they offer an all-inclusive strategy where the on-road costs are built-in to the retail price. There is still a cost to the dealership to put a vehicle on the road so this may be incorporated into the selling price of the vehicle. When you’re looking for a car at a dealership, it pays to check with the dealership as to whether the on-road costs are included or not. You don’t want to get any unwanted surprises after the fact.
What is a Pre-Delivery Inspection?
Part of the on-road cost charge for brand new cars includes a pre-delivery inspection or PDI at the dealership. This includes a thorough examination of the vehicle by qualified technicians to check for any mechanical or physical issues to ensure it is safe to be driven on the road.
Here are a few common checks that a pre-delivery inspection includes:
- Removing of the bodywork wrapping and suspension blocks that were in place to protect the vehicle in transit.
- Looking for any physical damage to the car.
- Checking the quality and correct assembly is done, including a tightness check on all underbody bolts (suspension etc).
- Ensuring the bolts on the wheels are tightly secured and the air pressure of the tyres are at the required level.
- Making sure the head and tail lights are working, aligned, and are at the acceptable level of brightness.
- Checking the locking mechanism to see if it works from your car keys and remote.
- Inspecting the levels of the engine oil, coolant, windscreen fluid and topping it up if need be.
- Testing the vehicle’s safety features e.g. seatbelts, dashboard warning lights, etc.
- Testing the vehicle’s onboard computer and updating any software if required.
- Setting up any personalised functions for the NZ market, e.g. service light interval, turning off traffic sign recognition function.
- Installing any easily fitted accessories such as carpet mats or car seat covers. (Other accessories with longer install times may be charged separately)
As well as testing the car while stationary, the technicians will drive the vehicle to check the handling and that all the safety systems such as auto brake and stability functions are working as intended. This is why, more often than not, you’ll notice your car has already clocked some mileage even before you’ve driven it.
To top it off, they usually groom the vehicle from top to bottom, and set the time and program the radio stations so that you can drive away to your favourite tunes from day one.
Having a good idea of what on-road costs are, and whether they are included or not in the sale price, means you will be better prepared when you walk into the dealership to buy your new car. If you’re looking for further information to help you with your quest, download our Complete Guide to Buying a New Car today!
