🚗 How Much Does It Really Cost to Own a Car in Australia (2025)?
Introduction: Why Understanding Ownership Costs Matters
Buying a car is a major milestone—but the actual cost of owning a car in Australia goes far beyond the driveaway price. Australians often underestimate the ongoing expenses that come with vehicle ownership. From insurance premiums and fuel to maintenance, registration, and depreciation, the costs can add up quickly.
In 2025, with rising fuel prices, new emission laws, evolving car tech, and shifting insurance premiums, it's more important than ever to understand the yearly cost of car ownership in Australia.
This comprehensive guide breaks down all the essential expenses Aussie motorists should consider before buying or budgeting for a car.
1. 🚘 The Upfront Costs: Purchase Price & On-Road Fees
1.1 Purchase Price
Whether you're buying new or used, the purchase price is your biggest initial outlay. In 2025:
New car average price: ~$43,000 AUD (source: Drive market data)
Used car average price: ~$28,000 AUD
Premium brands and electric vehicles can exceed $70,000+, while budget-friendly hatchbacks start around $20,000.
1.2 On-Road Costs (Stamp Duty, Registration, CTP)
On-road costs can add 10–15% to your final bill. These include:
Stamp duty: Varies by state; ~3-6% of car value.
Registration (Rego): ~$600 to $1200 per year, depending on your vehicle type and state.
Compulsory Third Party (CTP) Insurance: ~$300–$600 annually.
2. ⛽ Fuel Costs – The Ongoing Drain
2.1 Fuel Type Matters
2025 petrol prices average around $2.10/litre. Your choice of engine affects your weekly fuel bill:
| Engine Type | Fuel Price/Litre | Efficiency (L/100km) | Weekly Cost (500km) |
|---|---|---|---|
| Petrol | $2.10 | 8.5 | ~$89.25 |
| Diesel | $2.00 | 6.5 | ~$65.00 |
| Hybrid | $2.10 (Petrol) | 4.5 | ~$47.25 |
| Plug-in Hybrid | Mixed | 2.0–4.5 | ~$25–$50 |
| Electric | $0.30/kWh | 18 kWh/100km | ~$27.00 |
That’s a yearly fuel cost range of:
Petrol: ~$4,600
Hybrid: ~$2,400
Electric: ~$1,400 (based on home charging)
3. 🛠 Maintenance & Servicing
Annual maintenance costs can vary depending on vehicle age, type, and usage.
| Car Type | Average Annual Maintenance |
|---|---|
| Small Hatchback | $500–$800 |
| SUV | $800–$1,200 |
| EV | $300–$600 (fewer moving parts) |
| Luxury Car | $1,500+ |
Key Maintenance Items
Tyres: $400–$1000 every 3–5 years
Battery (EV): Covered by 8-year warranty typically
Fluids, filters, belts: $100–$400 annually
Brake pads: ~$300–$800 per axle
4. 🧾 Insurance Premiums in 2025
Insurance in Australia is highly variable. Average premiums (comprehensive):
| Driver Profile | Annual Premium |
|---|---|
| Young Driver (18–25) | $1,800–$3,000 |
| Experienced Driver | $1,100–$1,800 |
| EV Owner | Slightly lower due to fewer claims |
Tip: Use telematics or pay-as-you-drive options in 2025 to cut insurance bills.
5. 🪪 Car Registration & Taxes
Registration fees depend on the state and car type:
NSW: ~$900 (CTP + rego)
QLD: ~$1,000
VIC: ~$850
Luxury Car Tax (LCT) still applies to vehicles over the $76,950 threshold, even in 2025.
6. 📉 Depreciation – The Hidden Cost
Depreciation is often the biggest cost over 5 years.
| Vehicle Type | 5-Year Depreciation (%) | Avg. Value Lost |
|---|---|---|
| Petrol Sedan | 50–60% | $20,000–$25,000 |
| EV | 40–50% | $18,000–$22,000 |
| Luxury Car | 60–70% | $35,000+ |
| Toyota/Lexus/Mazda | 30–40% (great retention) | $12,000–$18,000 |
Tip: Buying used (3–4 years old) can dramatically reduce depreciation impact.
7. 🔌 EV Charging & Ownership Costs
For EV owners, costs are different:
Home charging: ~$1.50–$2.00 per 100km
Public fast charging: ~$0.60–$0.75 per kWh
Annual charging cost: ~$1,200 for 15,000km
Other benefits:
Lower maintenance
Fewer servicing items
Eligible for registration discounts in some states (WA, ACT)
8. 🎒 Extra Costs You Might Overlook
8.1 Roadside Assistance
~$80–$200 per year depending on provider
Some new cars include 3–5 years free coverage
8.2 Car Accessories
Dash cam: $150–$400
Floor mats, cargo trays, sunshades: $100–$500
Tinted windows: ~$300
8.3 Toll Roads
Sydney, Melbourne, Brisbane toll roads can add ~$20–$50/week depending on commute
9. 🧮 Annual Cost Summary (Typical Owner – 2025)
| Category | Average Annual Cost |
|---|---|
| Fuel (petrol) | $4,600 |
| Insurance | $1,500 |
| Registration & CTP | $900 |
| Maintenance | $800 |
| Depreciation | $4,500 |
| Toll roads | $1,200 |
| Misc. Accessories | $300 |
| Total | ~$13,800/year |
That’s $1,150 per month just to own and run an average petrol vehicle in Australia in 2025.
10. 💡 How to Save on Ownership Costs
✅ Buy a near-new used car (2–4 years old)
✅ Opt for fuel-efficient or hybrid vehicles
✅ Compare insurance annually
✅ Maintain your car regularly
✅ Use toll-free routes where possible
✅ Consider EVs if driving 15,000km+/year
Conclusion: Is It Worth It?
Owning a car in Australia in 2025 is a significant financial commitment. Whether you're eyeing a fuel-efficient hatchback, a family SUV, or a tech-laden EV, understanding the full cost of ownership helps avoid financial strain.
If you're not driving regularly or live in an urban area, alternatives like car subscriptions, ride-share, or even EV leases might be worth considering.
Ultimately, smart planning and informed decisions can turn car ownership from a financial burden into a practical, enjoyable part of your lifestyle.
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