Australia is a car culture, so if you don’t already have your own vehicle, it’s highly likely you’re considering buying one. Australians love the freedom that cars offer, but as valuable as they are in a country as big as ours is, there’s no getting around it: Car ownership is expensive.
Purchasing a brand-new car will run you at least $15,000 for just a basic model hatchback with used cars varying wildly in price. But even once you find a model with a sticker price within your budget, the costs don’t end. Dealer delivery fees, mandatory government stamp duty, extras and accessories – these all go on top of the price you see on the windshield.
These costs add up
It doesn’t even end there – once you’ve actually purchased the car and taken the keys, you need to start dealing with the ongoing costs of ownership. This is far more than just petrol. While the most visible and regular cost attached to car ownership, fuel is a comparatively minor expense, making up as little as 13.5 per cent of the total bill.
Where money is really lost is on depreciation – the decrease in the value of your car over time because of wear and tear and replacement by newer models – which takes out 40% of your weekly costs by itself. Insurance and registration are also far more significant than people think, accounting for a quarter of costs together with dealer delivery, stamp duty and club membership. Factor in biannual servicing and new tyres every few years, as well as interest if you took out a loan to purchase the vehicle, and you’re looking at a long and expensive commitment.
Together, these expenses can push the weekly running costs of your car into the hundreds of dollars. Even a budget-friendly Toyota Corolla can cost more than $200 a week to keep running, on top of all of the non-refundable start-up fees like loan application fees.
How to cut your costs
There are all sorts of tips and tricks people try to save on owning a car. Whether it’s downgrading from comprehensive to third-party insurance or switching to a more fuel-efficient car, these moves can have an impact on how much drivers can spend every week on their car, but they fail to address some of the more significant costs of ownership.
Some of the largest expenses – such as depreciation – are fixed, leaving drivers little room to manoeuvre. Additionally, these money-saving tricks can sometimes leave drivers financially worse off. Consider how much more a crash would cost you without comprehensive insurance: possibly a lot more than you’d save having cut it in the first place.
The smarter way to save
So how do you reduce these costs? Carbar offers a way. Our vehicle subscription service allows you to condense all of these expenses – registration, insurance, servicing, roadside assistance and more – into a single, easy to manage weekly fee. Not only will you never have to worry about a renewal notice again or have to stress about shopping around for the best deal on insurance, you’ll most likely save on your average running costs. For as little as $109 a week, you could be behind the wheel of a late model vehicle from top manufacturers including Jeep, Jaguar and Holden.
Subscribe today and join the Carbar revolution. Enjoy a zero-compromise way to drive and transform the way you travel.
To learn more about car subscription, browse our range of vehicles or join for free, visit carbar.com.au today.
