[VIC] You're Better off if You Renew Your Rego for 6m Instead of 12m

TanedaR on 07/07/2023 - 04:36
Last edited 07/07/2023 - 04:57

It's 4:30am and it's perfect time to do some maths and see how I will be better off. :)

12m rego = $876.90
6m rego = $441.05
https://www.vicroads.vic.gov.au/website-terms/card-payment-f…

Price difference = $441.05 * 2-$876.90=$5.20
$876.90/2=$438.45
If you lock that into a 6m term deposit say 4%p.a., interest you receive will be = $438.45 * 0.04/2=$8.77

$8.77-$5.20=$3.57 <— you will be $3.57 better off at least.

All you need to do is to register an online account with VIC Roads and change your renewal interval online.
You may also choose to receive your renewal notice by email so you will never miss it. Cheers.

Automotive

Comments

  • TanedaR on 07/07/2023 - 04:38
    +8

    I believe VIC Roads is criminal to charge nearly $900 for 12m rego and charge $2.60 per payment just for a shorter renewal period.
    So I am trying to find a way to maximize my benefit.
    This is OZB, every cent counts. :D

  • holdenmg on 07/07/2023 - 05:16
    +7

    You are assuming that if you renew for 6 months that in six months you can renew for $441.05 (and no more).

    Plus you won't even have the Minimum for a Term Deposit.

    You can probably "invest" your money in the Plenti Flex Market for 6 months, but even then Inflation will probably win because your money will buy less in 6 months than today.

    • TanedaR on 07/07/2023 - 05:20
      +3

      In VIC they only increase rego fee once a year on 1 July.

      I'm with Suncorp bank, there is no minimum requirement to open a flexirate, and 6m is 4.8%p.a. as of today.

      Inflation is irrelevant. It's 12m rego vs 6m rego. You either pay today or 6m later.

      • holdenmg on 07/07/2023 - 05:36

        So if you renew now (in July) that takes you through to January 2024.

        Are you not better Renewing in January 2024 for 12 months to beat the increase you may cop in on July 1, 2024 if you just renew for 6 months?

        • TanedaR on 07/07/2023 - 05:50

          You can't do 6m then 12m.
          Only options are 12m, 2x6m or 4x3m.
          Can't change your interval within the same financial year after you pay your first instalment Unfortunately.

          • holdenmg on 07/07/2023 - 06:00

            @TanedaR: Seems inflex and not OzB friendly.

          • Broke-Ken on 07/07/2023 - 12:54

            @TanedaR: This is not the case in my experience, unless they have changed things.

            When they started to offer 6m rego, I deliberately switched my rego to 6 month and then switch back to 12 months, so that my rego and insurance renewals don't come in at the same time!

  • Colin2905 on 07/07/2023 - 07:01
    +8

    $8.77-$5.20=$3.57 <— you will be $3.57 better off at least.

    Less tax on the interest at your marginal rate, and the 2% Medicare levy.

  • Euphemistic on 07/07/2023 - 07:18
    +23

    Paying once a year is worth $3.57 of my time.

  • Neoika on 07/07/2023 - 07:44

    You may have to do pink slip for each rego for old cars and pay more CTP insurance. States may be different on these.

    • geekcohen on 07/07/2023 - 08:25
      +5

      Not required in VIC.

  • DoctorCalculon on 07/07/2023 - 08:21
    +2

    All this trouble to save a measly $3.57?
    Let me ask you, how much do you value your time?

    • Stopback on 07/07/2023 - 08:57

      1 min. Saved 3.57.

      So do you make 3k a day?

      • poboy on 07/07/2023 - 09:08

        Advice taken. Complete saving opportunity 1,000 times.

      • mboy on 07/07/2023 - 13:11
        +2

        Ok, the fastest life-admin person in the world couldn't do it in 60 seconds. I love a good money saving tip, but this ain't it.

    • wetsandwich on 07/07/2023 - 15:15
      +1

      Sir, this is an Ozbargain.

  • geekcohen on 07/07/2023 - 08:27
    +1

    Depends on how you like to budget. If you can afford the whole lot, pay it. If not, do 6 months. My wife and I do 6 months for our cars just to help with the budget.

  • Derrick Crane on 07/07/2023 - 09:13

    Income tax on $8.77 at marginal rate needs taking into account.

  • Shadowsfury on 07/07/2023 - 09:14

    I do quarterly - used to be yearly for ages

    • jv on 07/07/2023 - 09:46

      Daily is best…

  • jv on 07/07/2023 - 09:44

    It's 4:30am and it's perfect time to do some maths

    What about the TAX you need to pay?

    Maths isn't enough, you need to do accounting too…

  • ULT on 07/07/2023 - 10:26
    +1

    Good effort with the math OP, but its simply not worth the saving for me to switch to higher frequencies of payment as it will eat up my time for other things. I love to get all that crap done once yearly, insurance, car rego, rates etc. When its all out of mind I can focus on the things that matter, reminders to pay for things are the worst and mentally its more exhausting to deal with (the simple fact that its just a money sink is annoying and id rather deal with it quickly). If im going to lose money anyway Id rather get slapped once a year vs twice.

  • Kremleen on 07/07/2023 - 10:29

    Vicroads charges you almost $20 for a renewal letter if you ever need a hard copy (I needed one because I purchased a car with long rego so I didn't actually have a physical proof of registration

  • Gunnar on 07/07/2023 - 12:25
    +1

    I'll contently pay your rego fees if you want to pay my Sydney toll bills

  • BrunoBear on 07/07/2023 - 12:45
    +3

    The main advantage of paying shorter rego is in the event of an accident and the car is a writeoff, you will lose less money. (I think insurance policies state that they get to keep any remaining rego value in these cases)

  • justgooddeals on 07/07/2023 - 16:50

    Forget to pay rego in 6 months time to save $3.57.

    Get pulled up by lovely boys in blue and pays $$$$$$$$. Priceless

    • geekcohen on 10/07/2023 - 07:02

      Get pulled up by lovely boys in blue and pays $$$$$$$$. Priceless

      Whilst being recorded for Highway Patrol. "Why didn't you pay your rego? Because OzBargain Community said don't"

  • Drifta on 07/07/2023 - 23:32

    You'll be even better off if you do 3 monthly.

    Also not sure if you can setup a direct debit. If so even better and less admin

    Not to mention cash flow benefits and yes most insurance companies keep rego if car is written off

    To be honest, plenty of benefits to do it in shorter intervals.

    • geekcohen on 10/07/2023 - 07:02

      Also not sure if you can setup a direct debit. If so even better and less admin

      I don't believe that is an option for Registration, its all manual payment or setting up something automatic for BPAY, but that is still risky.

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