Return to main website
Call Us 1300 300 922
Contact Us
Mybudget
Saving for a car? Budget 30 percent extra.
By Tammy may


Hidden costs of car ownershipWhen it comes to buying a car, the ticket price is just the beginning. On-road costs and running expenses quickly add up. In this case study, we estimate the total first-year costs of car ownership for a fictional buyer called Sara. Sara is female, 25 years old, living in Victoria and about to become the owner of a used 2011 Barina worth $10,000. What else does Sara need to budget for?

On-road costs are going to set Sara back around $2,600: $195 for pre-purchase mechanical inspection, $695 for registration and compulsory third party insurance, $510 for transfer fees and stamp duty, and $1,250 for comprehensive insurance.

Annual running costs are going to be about $1,800 a year based on 15,000km of city driving: $1,350 on fuel, $262 on servicing, $150 on roadside assist membership and $100 on tyres.

If Sara needs a car loan (for say $8,000) the repayments will be around $2,100 a year (or $174/month based on $8,000 at 11% p.a. for five years).

All the little extras add up. Over and above the price of the car, Sara will be looking at around $6,600 in first-year costs. That’s why, if you’re saving for a car, I recommend you budget at least 30 percent extra. And always do your homework—each case differs and these figures are an estimate only.

We're here to help
Our clients say that we are ‘life changing.’ This could be your story too.
Let's Talk
Account modal exit cross