The Real Cost of Owning a Car in Sydney
When knowing a car, it’s important to understand all of the expenses associated with it. A car is essential for many of us, whether driving it to work or getting children to school. This freedom however comes with a cost and Australians are feeling the pressure of it. While cars can be expensive not just to buy, they are just as expensive to run too. Australian households are spending more than ever to keep their cars on the road. Whether toll ways, maintenance costs or insurance, what is the real cost of owning a car in Australia, in particular Sydney? Read on to find out.
According to the first Transport Affordability Index conducted by the Australian Automobile Associations, Sydney households face the highest transports cost of any other Australia city. This is in dollar terms and percentage of a household income. According to the study, a two-car household faces transport costs of $419 weekly or $21,788 annually versus $346 in Melbourne ($18,096 annually) and $376 in Brisbane ($19,500 annually). Road tolls contribute heavily to this weekly transport cost in the three most expensive cities listed above. Without tolls even, they would still top the list.
Sydney cost to own a car
In Sydney, the higher costs associated with owning a car are related to registration, tolls and Compulsory Third Party insurance. This is required by law to cover anyone who may be injured due to the driver’s fault. Prices are also going up as the Federal Government continues to increase fuel prices to accommodate for road work. However, according to the study, just one out of every four dollars raised from fuel taxes actually goes to the road.
Ultimately, congestion has worsened in the area and is expected to get even worse. While most Australians know that transport is expensive, they may be surprised to know just how expensive it really is for their bottom line.
Upfront Costs of Owning a Vehicle
Stamp Duty is the percentage of the purchase price of a vehicle, whether new or used, that is paid to the state or territory government. It varies in the state that the buyer lives in. Comprehensive or Third Party Property insurance policies are not required, but help drivers save money if they are in an accident and should be included in the total cost of maintaining a vehicle.
Petrol is one of the biggest expenses associated with your vehicle. Fuel consumption will vary on each driver, however with the rising cost of fuel, it is expected that this accounts for a large part of the cost to operate your vehicle regularly.
Servicing a vehicle is another expense. While new car generally get complimentary oil changes, other repairs come out of the buyer’s pocket.
Ultimately, saving more money off the top of the cost of a vehicle will help you to pay for annual costs of operating the vehicle. If you need the vehicle now and don’t have time to save, consider a personal loan that can help you make the purchase now. Fixed Rate personal loan allows you to budget for a certain monthly payment for a term period.
By understanding all of the costs of operating a vehicle, you can properly budget so that these costs don’t make paying your bills too difficult for you and your family.