What is the true cost of owning a car?

A recent report by comparethemarket has shown that the average Sydney CBD worker spends up to $14,000 a year on their car. What is most surprising about the study is that this figure was for a modest Toyota Corolla and to add to that surprise, this study did not calculate the cost of the car’s depreciation.   

A separate study by the motoring lobby in Queensland (RACQ), calculated that a typical car’s depreciation is about $100 per week.

So how can you avoid this expense?

Probably the best alternative, is public transport. It can be cheap and convenient (if you live near a station) and it allows you to save on tolls, parking, petrol and wear and tear. However if you have a car sitting at home, you have a depreciating asset that you aren’t taking advantage of.

Another alternative, is to ditch the car and use ride-share or car rentals when you aren’t using public transport. An excellent option, however if you need a car for school drop offs, shopping etc. You will soon get sick of not having the freedom that your own car can give you.

For many people, the best way to reduce your car running expenses is to choose a car that is efficient on fuel, has lower servicing costs, weighs less or has less engine cylinders (for registration in some states) or most importantly has excellent resale value (lower depreciation).

However, this can be complicated and difficult to measure. For those people wanting certainty and transparency of the true cost of owning a car, a drivible subscription can be a true alternative to car ownership. Drivible has already worked out the expected depreciation and running costs and we package that into a simple and fixed monthly payment.