How Much Does It Really Cost to Own a Car in Australia in 2025?

How Much Does It Really Cost to Own a Car in Australia in 2025?

Owning a car is considered a necessity for many Australians, but how much does it really cost to keep a vehicle running in 2025? While prices vary depending on vehicle type, driving habits, and location, the average Aussie car owner might be spending significantly more than expected each year. In this comprehensive breakdown, we look at all the key cost components of car ownership in Australia for 2025.

Table of Contents

1. Why Knowing the True Cost Matters
2. Purchase Price and Financing
3. Registration and Licensing
4. Insurance Costs
5. Fuel and Energy Costs
6. Maintenance and Repairs
7. Tyres and Wearables
8. Depreciation
9. Roadside Assistance
10. Tolls and Parking
11. Cleaning and Detailing
12. EV Ownership Costs
13. Subscription and Leasing
14. Used vs New Cost Comparison
15. Final Budgeting Tips

1. Why Knowing the True Cost Matters

Many Australians look only at the purchase price. But ongoing ownership expenses can stretch budgets and lead to financial strain. Understanding these hidden and recurring costs can help you:

• Make better purchase decisions
• Compare vehicles smartly
• Prepare for long-term financial planning

2. Purchase Price and Financing

Average Costs in 2025:

• New car: $40,000
• Used car: $22,000
• Luxury model: $70,000+

On-Road Costs:

• Stamp duty
• Dealer delivery
• Registration
• CTP insurance

Financing Insights:

• New car loans: ~6.5% interest
• Used car loans: ~9% interest
• Average loan term: 5 years
• Monthly repayment: $600–$950

Tip: A 20% deposit reduces your total interest and risk of negative equity.

3. Registration and Licensing

Annual Registration (State Averages):

• NSW: $724
• VIC: $865
• QLD: $730
• WA: $730
• SA: $660
• ACT: $825
• TAS: $710
• NT: $600

CTP Insurance:

Ranges from $300–$600 depending on your state and insurer.

Driver’s Licence Renewal:

• ~$150–$300 every 3–5 years

4. Insurance Costs

Types of Cover:

• CTP: Compulsory
• Third-Party Property: Covers others' property
• Third-Party Fire & Theft: Mid-range option
• Comprehensive: Full protection

Average Premiums (Annually):

• Hatchback: ~$950
• SUV: ~$1,200
• EV: ~$1,400
• Performance: $2,000+

Factors influencing cost include your age, driving history, suburb, and car value.

5. Fuel and Energy Costs

2025 Average Fuel Prices:

• Unleaded 91: $2.05/L
• Premium 98: $2.30/L
• Diesel: $2.15/L

Yearly Cost Based on Vehicle Type:

• Hatchback (6L/100km): ~$2,460
• SUV (9L/100km): ~$3,690
• Ute (11L/100km): ~$4,510

EV Charging:

• Home (off-peak): ~$0.25/kWh
• Public fast charger: ~$0.60/kWh
• EV avg. energy use: 18kWh/100km
• Annual charging: $900 (home) – $2,160 (public)

6. Maintenance and Repairs

Annual Estimates:

• New cars (under warranty): ~$300
• Out-of-warranty: $800–$1,200

Typical expenses include:

• Logbook servicing
• Oil changes
• Brake pads
• Filters, fluids
• Spark plugs
• Battery tests

Note: EVs usually have fewer servicing needs.

7. Tyres and Wearables

Typical Replacement Costs:

• Hatchback: $400–$600
• SUV: $800–$1,200
• Performance tyres: $1,500+
• Brake pads: $200–$500
• Battery (regular): $180–$400
• EV/Stop-Start battery: $1,000+

8. Depreciation

Often the biggest invisible cost.

3-Year Depreciation Estimates:

• Hatchback: ~45%
• SUV: ~40%
• Ute: ~30%
• Luxury: ~55%
• EV: ~45%

Example: A $40,000 car could be worth just $24,000 in three years.

Tip: Choose cars with strong resale value like Toyota, Subaru, or Mazda.

9. Roadside Assistance

Annual Cost:

$80–$180

Free for new cars for up to 5 years. Includes:

• Battery replacement
• Flat tyres
• Emergency fuel
• Lockout help
• Towing

10. Tolls and Parking

Tolls:

• Daily commuters: $1,000–$2,500/year

Parking:

• CBD: $25–$60/day
• Monthly: $300–$600
• Street/Suburban: Often free or limited time

11. Cleaning and Detailing

• DIY: $5–$10/wash
• Drive-thru wash: $15–$25
• Full detailing: $200–$400 (as needed)

Annual cleaning spend ranges from $150–$800+.

12. EV Ownership Costs

Additional EV benefits:

• Less mechanical wear
• Brake pads last longer due to regen braking
• Fewer fluids
• Lower service costs

Potential EV Costs:

• Wall charger: $1,200–$2,500
• Battery replacement: $10,000+ (after 8–10 years)
• Battery warranty (2025 norm): 8 years

Some states offer EV registration discounts and rebates.

13. Car Subscription and Leasing

Subscription:

• Includes rego, insurance, servicing
• Monthly: $800–$1,500
• Great for flexibility but costly long-term

Leasing:

• Novated leases (via employer)
• Tax effective
• 3–5 year terms
• Fixed running cost estimate per month

14. Used vs New Comparison

Tip: A 3-year-old vehicle is often the best sweet spot for value.

15. Final Budgeting Tips

Total Estimated Annual Ownership Cost (2025):

• Budget Hatchback: $8,500
• Mid-size SUV: $10,500
• Ute: $12,000
• Electric Vehicle: $9,000 (w/ home charging)
• Luxury Car: $15,000+

Smart Ways to Save:

• Buy ex-demo or late-model used
• Review insurance annually
• Opt for fuel-efficient models
• Perform regular maintenance
• Drive efficiently to save fuel

Conclusion:
Owning a car in Australia in 2025 comes with more than just the purchase price. By understanding all the associated expenses—from insurance to depreciation—you can make better financial choices, pick the right car for your lifestyle, and avoid budget blowouts.