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The Real Cost of Owning a Car in Australia

Buying a car is one thing. How about running one? Car ownership is a big deal for many Australians, for personal or for business use. To that end, it’s hardly surprising that there are so many different resources and financing options available for willing motorists.

However, many motorists simply don’t prepare themselves enough for the costs that can arise from regular driving. Owning a car can cost you money even if you don’t drive too often! With this in mind, let’s take a look at some of the costs you’re going to need to prepare for.

Fuelling Up


Before you worry about whether or not you can afford to run a car, it’s worth bearing in mind a few facts about fuel and vehicle usage.

  • Over 18 million different vehicles are registered to drive on Australia’s roads. That means only 6 million of us, on average, go without!

  • The average Australian will drive up to 16,000km each year. That’s a lot of fuel!

  • These costs, on average, reach around $72 per week for Australian car owners.


$72 may not seem too much, but that adds up to $3,744 per year. On a salary of $25,000, that’s a fair amount to be putting by for running costs. Remember, if your driving is for business purposes, you can claim the fuel cost as a tax deductible expense. Make sure you speak with your Accountant about it.

There are other things to consider, too!

Other Regular Costs


Buying a car outright means there are other expectations required of you, too. These, unfortunately, will also have a knock-on effect for your finances.

  • In addition to fuel costs, you will need to pay for regular servicing. Australian households can expect to pay between $25 and $30 per week on vehicle upkeep.

  • Licensing and registration costs – to keep your vehicle road legal – could cost you around $30 per week.

  • There’s insurance, too! Comprehensive coverage is optional but recommended. You may spend up to $25 per week on these costs.


Running costs for cars in Australia will vary from area to area. It is worth bearing in mind that servicing, fuel, insurance and toll road fees will likely be higher around city areas. Towards more rural areas, you will be looking at paying much less.

It is also worth noting, too, that your running costs will depend upon how much you use your car. However, again, you’ll still need to pay for licensing and insurance premiums!

Affording a Car


All in all, running a car year on year between two people can stretch into the thousands. However, there are ways in which you can spread the cost.

Car financing is a great way to cut down the pressure of having to buy your car outright. What’s more, other fees and factors may be taken into account with certain plans. This way, you can financially plan without having to panic.

If you’re keen to drive in Australia but are worried about the costs, we’re here to help! Call AutoCarLoans today on 1300 301 051 to speak to one of our expert brokers.

DISCLAIMER : The thoughts and opinions conveyed on this website are those of the authors only and are of a general nature. This does not constitute financial or general advice to you from Auto Loans Group. You should seek your own independent advice from a professional which is specific to your circumstances before considering any of the items referred to in this article, including finance, insurance, and car buying.