Car rego blues

Felix the Cat 8 January 2012 54

So I received my car rego renewel in the mail the other day. Great, another bill, just what I need at this time of year. Being Christmas and having a few other bills needing paying around this time I find myself to be somewhat unfinancial so I decide to only purchase 6 months rego instead of 12 months and hopefully in 6 months time when it’s time to renew again I will be able to afford full freight.

Anyhow, I logged onto rego ACT website and duly paid the rego (quite a painless exercise apart from parting with the money!) but noticed they slug me an extra $25 for the priviledge of paying only for only 6 months rego. The full 12 month price for my small 4 cyl car is $796.50 (CTPI $526.60 + rego $269.90), the 6 month fee is supposed to be half this plus $25 (so $423.25) but they actually charged me $429.30 (NFI what the extra $6.05 is for – a “just because” fee I suspect).

It’s no wonder there are so many unregistered vehicles running around when people are penalised and charged extra fees just because they can’t afford to pay the full 12 months. The amount payable for 6 month rego should be exactly half, not half plus $25 plus $6.05. Adding all these fees for no reason – there is no reason, it doesn’t cost ACT govt any more to process 6 months rego than it does 12 months (except maybe an envelope and postage costs) – so why penalise people for it? Going off the govt logic why don’t they have 2 or even 3 years rego and make it even cheaper, or just go the whole hog and introduce lifetime rego and only charge $10?

You can understand to an extent that say food and drink costs comparitively more when buying in smaller quantities (eg a 375 can of Coke can cost nearly the same as 1.25lt bottle but that is Coke and the supermarkets profiteering…I digress…) but govt services shouldn’t IMO.


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Frustrated Frustrated 8:39 pm 09 Jan 12

smeeagain said :

I’m not sure who commented about NRMA being the only CTP provider, but the paragraph below, indicates that you are able to shop around…

http://www.rego.act.gov.au/registrations/regotransferr.htm

At the time of paying the registration fee the Compulsory Third Party Insurance (CTPI) component is also collected. A new CTPI provider cannot be selected upon transfer of registration. A new CTPI provider can be selected upon the next renewal of registration.

First of all, you posted a link to transferring registration when taking ownership of a vehicle.

Secondly, it is a well known fact, that there is only one option in the ACT for CPI and that is the NRMA/IAG Group.

Feel free to contact Canberra Connect or ACT Motor registry if you want to prove me wrong.

The ACT Govt offered other insurance companies the option to offer CPI with ACT rego, but only the NRMA/IAG took up the offer to this point in time.

Other Insurers dont see the value for their shareholders in offering CPI in the ACT due to our small population I assume

The Antichrist The Antichrist 8:16 pm 09 Jan 12

AG Canberra said :

Rego/CTP is just about the only ACT Gov charge that can not be paid fortnightly/monthly. As soon as one of the parties in our toy assembly propose this I will vote for them.

Rego is the only payment that can’t be arranged via regular direct debit. Why?

You’ll be waiting a long time mate – it will never happen.

Why ? Rego is not something like an electricity bill or a gas bill. Cars get bought and sold and crashed all the time. Owners move interstate, cars move interstate…..there are far too many variations for something with such low intrinsic value as a car – vs the steady and ongoing nature of household bills for household utilities.

The assumption that every motorist will continue to own the same vehicle for 12 months cannot be sustained as it would need to be, in order to support a fortnightly deduction for rego for every car owner. Cheap shitheaps get bought and sold every day of the week…..trying to work out fortnightly payment balances and refunds etc etc would be an administrative nightmatre and probably add $100pa to the cost of rego !! Oh of course unless you support the OP’s belief that admin fees are nothing more than government profiteering and it costs nothing to register your vehicle……

NoImRight NoImRight 4:52 pm 09 Jan 12

The costs for different periods are on your rego papers so its no surprise. A little late when paying to carry on.

I do like the fact the OP is critical of others based on their ignorance of his position but then goes on to state processing his application “costs nothing” and exhorting the use of a user pays system that is totally unworkable and a complete nonsense. Irony can be pretty ironic.

Ian Ian 4:40 pm 09 Jan 12

Felix the Cat said :

As far as the staff of the Motor Registry having to process rego payments quarterly or half yearly they are getting paid to work regardless so there is no extra cost there. They don’t get paid to only process say 10,000 rego renewals per year.[/quote>

Not strictly correct. While true of the individual staff members, the number of transactions processed would play a part in determining how many people they need to employ. The more transactions, the more staff needed, the more cost. Although I doubt its anything like $25 additional cost … the surcharge on the CTP looks more like what it should be.

There is no actual cost for car rego, so it’s all profit for the govt (as has been discussed numerous times on this forum previously car rego just goes into the big pot of govt money called consolidated revenue, it doesn’t actually go specifically towards roads or any other transport infastructure)

The rego part of it is merely a tax. If it wasn’t collected via rego the government would just slug people some other way.

smeeagain smeeagain 4:21 pm 09 Jan 12

I’m not sure who commented about NRMA being the only CTP provider, but the paragraph below, indicates that you are able to shop around…

http://www.rego.act.gov.au/registrations/regotransferr.htm

At the time of paying the registration fee the Compulsory Third Party Insurance (CTPI) component is also collected. A new CTPI provider cannot be selected upon transfer of registration. A new CTPI provider can be selected upon the next renewal of registration.

Erg0 Erg0 4:16 pm 09 Jan 12

It’s going to take a while for the vehicle registration system to catch up with advances in enforcement (namely RAPID), but I expect that we’ll be going the stickerless route before long. Once the stickers are gone, the flexibility for fortnightly payments, etc will be much greater. Whether that flexibility leads to actual changes is another matter, of course.

Felix the Cat Felix the Cat 3:04 pm 09 Jan 12

Interesting that people feel they’re qualified to comment on my financial affairs even though none of you know me or what I earn or what my expenses are. Amazing.

My OP was more about the “system” rather than my personal financial affairs. A few people read my original (and subsequent) post and understood what I was getting at but most just jumped on the “me too” bandwagon and just accused me of financial mismanagement.

As far as the staff of the Motor Registry having to process rego payments quarterly or half yearly they are getting paid to work regardless so there is no extra cost there. They don’t get paid to only process say 10,000 rego renewals per year.

There is no actual cost for car rego, so it’s all profit for the govt (as has been discussed numerous times on this forum previously car rego just goes into the big pot of govt money called consolidated revenue, it doesn’t actually go specifically towards roads or any other transport infastructure)

Having a user pays system would be much fairer based on the kms you travel, perhaps they could add say 20c per litre to the price of petrol to cover it. Or, as someone else suggested a weekly/fortnightly payment system would be handy too.

Bluey Bluey 2:35 pm 09 Jan 12

I thought this topic was about the Blue rego stickers for 2013 lol.

Suck it up, just paid 12 months for my hatchback $830.

Dont like it move to Quangers.

Madman Madman 8:33 am 09 Jan 12

Not to mention the additional costs that processing your rego twice a year puts on the ACT Gov such as:
Credit card processing fee, postage and envelopes(as you’ve said), the cost of an extra sticker over the year (which the replacement cost is charged at $20), and the cost of the staff having to process additional requests.

I think it’s quite fair to charge the extra fees then absorb it and everyone else having to pay higher rego fees for the year. Because that’s what will happen if they remove those fees, your rego costs will be an additional $30 a year……

gasman gasman 8:30 am 09 Jan 12

Whiile I understand the OP’s point about the extra cost of 6 months rego, compared to 12 months, this is just chicken-feed compared to the true total annual cost of running a car.

Estimates vary from $5000 to $9000 per year of total costs of having a car for the average user. This includes rego, insurance, depreciation, interest, fuel, maintenance etc. Does not include parking fees or fines.

This equates to between $13 to $24 per day. Every day.

AG Canberra AG Canberra 7:34 am 09 Jan 12

Rego/CTP is just about the only ACT Gov charge that can not be paid fortnightly/monthly. As soon as one of the parties in our toy assembly propose this I will vote for them.

Rego is the only payment that can’t be arranged via regular direct debit. Why?

The Antichrist The Antichrist 9:47 pm 08 Jan 12

Mysteryman said :

They said they would eliminate the extra cost to 3 and 6 month registrations, not remove the option

thanks for clearing that up. 🙂

Frustrated said :

Paying $1000 p/a for a 1700kg Falcon is more than outrageous

It sure is – we don’t even pay that much for a 2700kg Landcruiser ! Paying $560 p.a for CTP for this sort of vehicle is pretty good in comparison to other jurisdictions.

JC JC 9:24 pm 08 Jan 12

Frustrated said :

I’ll have a whinge, Due to the TPI, ACT vehicle registration is friggin joke.

Paying $1000 p/a for a 1700kg Falcon is more than outrageous.

Too right, the actual rego component for the average car is only around $250-$300pa which is not unreasonable. What is unreasonable is paying $526 for insurance regardless of your driving history.

JC JC 9:20 pm 08 Jan 12

basketcase said :

“If you pay your rego twice a year instead of once, they have to pay staff to process it twice as often…”

That’s codswallop. just goes into a computer and an extra buck for the postage and printing.

You are of course assuming that everyone is paying on the internet. Go to a gov shopfront one day and you will see there are still a heap of people paying in person. So if people were to pay twice as often by paying every 6 months then there is an additional staff cost there.

And of course if the gov were to make it cheaper to pay on the net your would then have someone else whinging how they being disadvantaged and ripped off for paying in person, but alas guess you think it is all some gov conspiracy to keep the poor poor.

damien haas damien haas 9:01 pm 08 Jan 12

actually you wont be able to look at car rego stickers for much longer. i heard andrew cappie wood mention they would be phased out, at a combined community councils meeting last year. they have already been phased out in WA. i dont know if a date has been set or official decision made yet though.

damien haas damien haas 8:59 pm 08 Jan 12

clarification – they will abolish the admin fee – not the ability to register cars for a three month period.

as a member of a few local car clubs, i can assure you there are thousands of cars in Canberra that get 6 months rego a year – for the summer only when the car shows are on. many cars then sit in garages after easter until sep/oct.

wander around ‘marques in the park’ or ‘terribly british’ day and look at the rego stickers.

it is a good option and i’m glad we have it. i just dont understand how anyone can argue that paying a fee for a service – processing the rego and mailing your sticker to you 4 times a year because you CHOOSE to pay four times – is unfair.

Frustrated Frustrated 8:32 pm 08 Jan 12

I’ll have a whinge, Due to the TPI, ACT vehicle registration is friggin joke.

Paying $1000 p/a for a 1700kg Falcon is more than outrageous.

If you do the comparison with other states, Canberrans are being ripped off blind as usual.

The fact that NRMA/IAG were they only company who took up the offer of providing the TPI, shows what a disaster the ACT Govt with that decision to off the TPI to market. NRMA have the market and charge whatever the hell they like.

Mysteryman Mysteryman 8:29 pm 08 Jan 12

The Antichrist said :

damien haas said :

the liberals announced they planned to abolish this when (if) they come to office

why would they bother doing this ? Having the option to pay for less than 12 months is a great option for those that have more than 1 vehicle and where that vehicle is only used for 3 or 6 months ?

Forcing punters to pay 12 months in every case, is just going to result in more, not less, unregistered vehicles on our roads. Not something that the Liberal Party should be pushing for I would have thought ? The RAPID scheme has already made huge inroads into reducing the number of unregistered shitheaps off our roads……why reduce the effectiveness of this scheme ?

Felix – reducing those lareg annual rego fees is exactly what the 3 and 6 month options allow – even with that small admin fee tacked on top. This flexibility is a great option. I have no sympathy for punters who give themselves a large rego bill around Xmas, its ludicrous. 1 renewal for 6 months is all it takes to fix that problem…….

They said they would eliminate the extra cost to 3 and 6 month registrations, not remove the option.

BiffLoman BiffLoman 8:23 pm 08 Jan 12

I’ll happily register my car for 12 months, BiffLoman, once you transfer the funds for me to do so. Unfotunately I have had quite a few unexpected bills to pay recently that I hadn’t budgeted for so don’t have the money to do it myself.

Send you money, Felix? I don’t think so. You can barely handle your bills as it is!

MrPC MrPC 7:34 pm 08 Jan 12

I just renewed my NSW car rego for 6 months for much the same reasons, a week ago. I can assure you it cost me more than $31 more. Further, with the compulsory pink slip every 12 months, where the mechanic will always find $200-$500 of work that must be done, it will cost quite a lot more when I renew in 6 months if I elect to renew for 12 months.

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