What do all Australian car owners have in common?
Well, that’s easy. It’s that pesky car rego bill that finds itself in our mailbox every six to twelve months.
Here at Nimble, we see a lot of our customers get caught short each time their rego payment rolls around. It seems like the last one was only just paid, right?
So, let’s talk about it. What are we actually paying all this money for and is there a way to make sure we’re not caught off guard when it’s rego time?
What does ‘rego’ even mean?
In Australia, every vehicle that drives on the roads is required by law to be registered. Getting your car registered proves it’s roadworthy, that it belongs to you and allows the car to be identified quickly.
Another requirement by law is that your vehicle must be covered by Compulsory Third Party (CTP) Insurance.
In most states and territories there is only one approved provider of CTP insurance, however NSW and QLD give car owners a choice in this department. Premiums depend on the type of vehicle and who will be driving it.
The exact fees that cover the above differ pretty substantially from state to state, but generally it is broken down into:
Check out the info provided by your State or Territory Government for more facts and figures.
Our Top Tips for being Rego-Time-Ready
1. Does your bank offer sub-accounts?
Create a sub-account that is called “Rego Savings”. Or “Sneaky Rego Bill”. Or “Unexpected, annoying. pain-in-the-butt car rego”. (You probably can’t use that many words.)
Seriously though, most banks allow you to open a sub-account to your main account. It’s not a whole new account with a whole new set of fees – it’s just an area where you can set aside money for things like, you know, your rego.
Give your bank a call and organise that sub-account today.
2. A ‘Piggy Bank’ called Reg.
Now that you’ve opened a new sub-account, make it your virtual piggy bank. Aussies are increasingly going cashless so the good old fashioned jar in the cupboard is becoming trickier to fill.
It’s about time we took the piggy bank online. Log on to your internet banking once a day and transfer any “change” into your sub ‘piggy bank’ account rounding your balance to dollar figure. Do this everyday and watch those leftover cents turn into dollars, and in a years time most of your rego could be sorted.
3. Rego due this month? Time to say no to eating out.
It’s OK to say ‘no’ sometimes. Especially when it’s saying ‘no’ to going out for dinner every night when your rego is due this month. Suggest that your friend cooks you dinner instead? And promise that you’ll do the same for them when it’s their rego month. What are friends for, anyway?
4.What costly things are you subscribed to?
Music subscription? TV? Magazines? Maybe you don’t really need that subscription? Maybe you’ve forgotten that you even had that $13.00 coming out of your account each month. Well, hate to point out the obvious – but there’s a good chunk of your rego right there.
5. Put your wheels to work!
For the many of us who commute to work on a daily basis, rego can be a right little pain especially since our car spends more time in the garage than on the road. Why not put your wheels to work and pay its rego for itself?
How on earth you might ask… well today thanks to the innovative startups in the sharing economy, you can rent your car out while you’re at work or away. Check out DriveMyCar where you can earn $800 per month or more. They calculate the amount you earn from renting your car according to its market value and estimate a return of 42% if rented for a year!
We’ve blogged about the sharing economy before and how you can make some extra money.
Check it out here for even more creative ways to save for your rego.
6. Do you even need a car??
Live in the city? Or work from home? Or close to public transport? Have you ever thought about ditching the car all together?
Imagine having no car and none of the costs that come with it ie. never worrying about the dreaded rego again! Just you, a bicycle and the wind in your hair.
Did you find this info about rego helpful? We’d love to hear your feedback – just comment below.
Information current as at July 2015.
The information in this blog post is not intended to imply any recommendation, endorsement or opinion by Nimble about any financial or non-financial product. Nimble does not recommend or advise on the suitability of a product or suggest or imply a recommendation to buy, sell or hold a particular product. This blog post is for information purposes only.