What is the total cost of owning a car?

According to CarExpert, a cheap car is likely to set you back around $20,000. That makes it look like owning a car is no sweat but there's a long list of other costs to think about.

Based on the latest Transport Affordability Index published by the Australian Automobile Association (AAA), a typical household spent $24,932 a year on transport in the capital cities and $22,759 a year in the regional centres it tracks in the June quarter of 2026. That covers car loan repayments, fuel, insurance, registration, servicing, roadside assistance, tolls and public transport.

Compared with the March quarter, average annual costs fell by $144 (0.6%) in the capital cities, helped by lower fuel costs in some capitals and public transport incentives in Victoria and the ACT. They rose by $332 (1.5%) in the regional centres, mainly because of higher fuel costs. Sydney was the most expensive capital at $29,932 a year and Hobart the cheapest at $21,839.

Are you planning to buy a new car soon? Finder's Consumer Sentiment Tracker recorded 21% of respondents (n=1,059) will be shopping for a new ride this year.

The total cost of owning a car

To get the total cost of buying a car, you should factor in both the drive-away cost and car running costs. You should also consider depreciation costs. The charts below use figures from the AAA's 2023 index.

Figures from the Transport Affordability Index March Quarter 2023 by the Australian Automobile Association

Average cost of owning a car in Australia per year

Capital cities	Cost
Capital average	$24,262
Adelaide	$22,393
Brisbane	$27,188
Canberra	$23,262
Darwin	$22,107
Hobart	$21,245
Melbourne	$27,503
Perth	$22,667
Sydney	$27,730
Regional areas
Regional average	$20,404
Alice Springs	$21,691
Bunbury	$21,511
Geelong	$21,604
Launceston	$19,925
Mount Gambier	$20,258
Townsville	$19,239
Wagga Wagga	$18,603

In the June quarter of 2026, the AAA estimated a typical household's total transport costs at $479.45 a week in the capital cities and $437.68 a week in the regional centres it tracks. The weekly breakdown below uses figures from the AAA's 2023 index.

Figures from the Transport Affordability Index September Quarter 2023 by the Australian Automobile Association

Average weekly cost of owning a car

Upfront Costs	Capital Cities	Regional
Car loan payments	$188.87	$188.84
Registration, CTP & licensing	$31.68	$30.19
Car insurance	$42.67	$35.02
Total Upfront Cost	$263.22	$254.05
Running costs
Fuel	$100.29	$103.46
Servicing and tyres	$34.54	$32.56
Roadside assistance	$2.34	$2.32
Total Running Cost	$137.17	$138.34

The average car price in Australia for a brand-new vehicle is $61,949. This is based on the average car price of the top 5 selling motor vehicles in February 2024 released by the Federal Chamber of Automotive Industries.

Average price of top 5 cars based on sales

Car Model	Low	High	Midrange
Ford Ranger	$50,146	$98,722	$74,434
Toyota Hi-Lux	$33,688	$80,311	$57,000
Tesla Model 3	$58,900	$80,900	$69,900
Isuzu D Max	$42,836	$68,685	$55,761
Toyota RAV 4	$44,037	$61,266	$52,652
Average price of brand new car in 2024:			$61,949

Vehicle type and model

Prices can vary a lot depending on the car make and the model you buy. For example, a Ford Ranger, the most popular vehicle in Australia, comes at an entry-level price of $50,146 while the Tesla Model 3 comes at an entry-level price of $58,900. If you opt for add-ons on the interior or exterior, be ready to shed off a couple more of your cold hard cash too.

In the past, buying a used car may have seemed like the cheaper choice but that may not always be the case, depending on what options you're willing to consider.

New and used car prices are linked. When new cars are in short supply, used car prices tend to rise, and when new-car supply improves, used car prices tend to ease.

Mileage

This next parameter will not matter much if you're cashing in on a brand-new vehicle. However, it greatly affects price, performance and future maintenance costs if you're opting for a used car.

Lower mileage could jack up the price. It could also possibly lower car service costs compared to a used car with higher mileage.

Financing costs and interest

Where and when you take out a car loan affects how much you pay for how long. If you research your financing options well enough, you should be able to better negotiate financing terms.

Taxes and registration

The actual drive-away cost will always be significantly higher than the advertised car prices. Where you buy also impacts how much you pay for registration. For instance, stamp duty on cars in NSW would cost more than stamp duty on cars in QLD.

You'll also be required to pay for Compulsory Third Party (CTP) insurance to have your vehicle registered and ready for the road. Research ahead and compare car insurance to get the best deals.

Finder survey: Why don't Australians have comprehensive cover?

Recurring costs of owning a car

When you're planning to buy a new car, you need to remember that the true cost of owning a car goes far beyond driving it out of the dealership.

Overall, the AAA estimates that transport costs took up 15.5% of a typical household's income in the capital cities and 15.7% in the regional centres in the June quarter of 2026. It was the first time since the AAA began tracking regional centres in 2017 that the regional figure was higher, which shows that lower costs don't necessarily mean better affordability when household incomes are lower.

Here are some of the additional costs you should consider.

Petrol costs

Fuel is the second-biggest transport cost for a typical household after car loan repayments. In the June quarter of 2026, the AAA put the national average at $101.26 a week, or 22% of total household transport costs. Fuel prices can swing sharply from one quarter to the next, so leave some room in your budget.

Maintenance and repairs

In April, a Finder survey of 919 Aussies found that 2 in 5 skip on vehicle upkeep, while 1 in 4 admitted not being able to afford car service costs.

The more you drive, the higher the cost of maintenance. Can your current budget and living costs absorb this additional cost?

Car insurance

CTP is required for registration but if you want cover for damage to your own car, you'll need comprehensive car insurance. The total cost of your comprehensive policy will depend on your age, the car you drive, your address and whether you have been in an accident before.

Parking and toll fees

Account for toll and parking fees on your usual route. If you don't have a garage at home, you may have to rent parking space continuously.

Tips to save on the costs of owning a car

It's clear. Vehicle price is not the only car cost you should be thinking about if you're planning on buying a car.

Here are some ways to save on your next car purchase.

Buy secondhand

Keep in mind that a brand-new car may carry a steeper upfront cost but a secondhand car, depending on its condition, may entail higher running costs.

Buy an energy-efficient car

The upfront cost of buying an electric vehicle (EV) is steeper. However, car running costs may be significantly reduced over time.

The good news is that different states are pushing for wider EV ownership, and have come up with incentives for EV buyers. If owning an EV is an option for you, make sure to check out EV incentives where you live and take note of any conditions like price threshold as well.

Avoid unnecessary add ons

Always demand a cost breakdown. Keep an eye out for unnecessary add-ons so you can keep costs to a minimum.

Follow the car maintenance schedule

Don't skip out on your maintenance schedule. If you can't afford car maintenance and repairs, maybe you really can't afford the total cost of owning a car. If you miss periodic checks, you're only setting up yourself for more serious car trouble ahead.

Keep your car insured

Like any other insurance, the last thing you want is to file for an insurance claim. However, buying sensible car insurance coverage shields you from surprise expenses.

Drive safely

Learn energy-efficient driving techniques to save on energy costs and decrease the rate of wear and tear of your motor vehicle's engine and parts.

Can you afford a car in 2026?

Don't be duped by a car's advertised price. Shop around and always inquire about the drive-away cost of owning a car. Always think about what other options you have.

Set a budget for your next car purchase and work through car running costs into your regular budget. That new ride will definitely cost you extra and it pays for you to know how much you can really afford to spend on buying and running a car month after month.

Frequently asked questions

• How much does a car cost in Australia in 2024?

  Currently, the cheapest prices for a brand-new car are under $20,000.

  Based on the Top 5 cars according to February 2024 car sales volume, Aussies paid $61,949 on average for a brand-new car.

• How much does it cost to run a car in Australia?

  According to the AAA's June quarter 2026 Transport Affordability Index, a typical household spends $24,932 a year on transport in the capital cities and $22,759 a year in the regional centres it tracks.

  The total cost of owning and running a car factors in loan repayments and other costs such as tax and registration, car insurance, repairs and maintenance, and petrol.

• How much should I spend on a car based on salary in Australia?

  You should always factor in your capacity to pay for a new car based on how much you earn regularly and how much you can afford on top of other expenses. Other than that, you should also weigh the costs against other plans you may have that may need a substantial amount of money to pursue, like buying a house or putting up capital. Buying a car can set you back several months or years so think hard about what you'd want to prioritise.