The Hidden Costs of Car Ownership
How To Avoid Hidden Costs
Owning a car in Australia often seems like a rite of passage or a necessity, especially in cities like Brisbane where public transport might not cover every route. However, the initial purchase price is just the tip of the iceberg. Many car owners are often surprised by the myriad of ongoing expenses that accumulate, often referred to as the 'hidden costs' of car ownership.
Understanding these costs is crucial to choosing how to finance your next car. Understanding all your options, including car subscriptions, could save you thousands of dollars a year.
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Unpacking the True Cost of a Car
Beyond the purchase price and repayments, several significant costs contribute to the overall expense of owning a vehicle in Australia including:
1. Depreciation
This is arguably the largest and most overlooked cost. A new car begins to lose value the moment it's driven off the lot. On average, a new car can depreciate by 15-20% in its first year and usually 50% or more over five years.
2. Registration and Government Fees
Every year, you’ll need to pay for registration, and compulsory third-party (CTP) insurance in most states (like Queensland). These fees vary by state and vehicle type but are a non-negotiable annual expense. Additionally, stamp duty is paid upon purchase, adding to the initial outlay.
3. Insurance
While CTP insurance covers personal injury to others in an accident, comprehensive car insurance is highly recommended to protect against damage to your own vehicle and property and any other cars or property. Premiums can vary significantly based on factors like your age, driving history, vehicle type, and location, often adding hundreds or even thousands of dollars to annual expenses.
4. Maintenance and Servicing
Regular servicing is essential to keep your car running safely and efficiently. These costs include routine checks, oil changes, tyre rotations, and replacement of wear-and-tear parts. Unexpected repairs due to breakdowns or accidents can also lead to substantial, unplanned expenses that could cost thousands and leave you stranded without a car for weeks.
5. Fuel
With fluctuating fuel prices, the cost of petrol or diesel can be a significant ongoing expense, particularly for those with long commutes or less fuel-efficient vehicles. The average Australian household spends a considerable amount on fuel each week. Considering a Hybrid car could slash your fuel costs.
6. Tyres
Tyres are a critical safety component that wear out over time. Replacing a full set of quality tyres can be a substantial expense, typically required every few years depending on driving habits and distance travelled.
7. Roadside Assistance
While not mandatory, many drivers opt for roadside assistance memberships for peace of mind, adding another recurring cost.
8. Cleaning and Detailing
Keeping your car clean, both inside and out, can incur costs, whether through regular car washes or professional detailing.
The Overall Impact
When all these factors are considered, the true cost of car ownership in Australia can be staggering. Recent data suggests the national average yearly cost of owning a car can be over $23,000, or approximately $440 per week, encompassing everything from depreciation to fuel and maintenance. This figure often far exceeds what many initially budget for.
How Car Subscriptions Offer a Smarter Alternative
For those looking to avoid most of these costs and simplify their vehicle expenses, a car subscription service like ClickMe Cars offers a compelling solution. Here's how it addresses the challenges of traditional car ownership:
Predictable Costs: With a car subscription, you pay a single, all-inclusive weekly fee. This covers registration, damage cover, scheduled maintenance, and roadside assistance. This means no unexpected repair bills, no annual registration shock, and no separate insurance premiums.
No Depreciation Worries: Since you don't own the vehicle, you are not affected by depreciation. You simply use the car for as long as you need it.
Flexibility: Car subscriptions typically offer flexible terms, allowing you to pause or cancel with short notice, or even swap vehicles to suit changing needs, without long-term contracts.
Reduced Upfront Costs: Unlike purchasing a car, which often requires a significant down payment, car subscriptions usually have minimal or no upfront fees.
No Hidden Expenses
By consolidating all major vehicle expenses into one transparent payment, ClickMe Cars provides a hassle-free and often more affordable way to access a car in Brisbane and across Australia, allowing you to enjoy the benefits of driving without the hidden financial burdens of ownership. Because no one likes a bad surprise when it comes to bills.
FAQs
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Yes, all our available cars are ready to go immediately.
Simply apply online or in person to get approved and start driving.
Our fastest approval type is Easy Path.
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A driver’s licence and a proof of address are the minimum documents required.
You can provide additional documents to potentially reduce your bond. Read more here.
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At any time, you can cancel with 1 week's notice.
If you need to cancel in the first 60 days, your access to the car is treated as a rental and rental rates apply.
Rental rates are higher than long term rates.
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Payments are required to be made in advance.
If you cannot make payment by the due date, please contact us.
You may be required to return the car for a short hold until your payments have been caught up.
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Our weekly km allowance is exactly that - an allowance - not a restriction.
When we assess your km, we calculate your usage as an average over the whole time you’ve had the car.
If you drive a lot this week and less next week, provided the average is equal to or less than your allowance, there are no extra charges.
If your average usage suggests that you drive more than your included km per week, you will be required to pay for additional km at the rate set out in your agreement.
We have discounted additional km packages available for super users.
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As a fully managed service, we take care of organising and paying car servicing and other maintenance such as tyres and brakes.
Please contact us to organise a complimentary service at a location close to you. You will need the car’s current odometer so our team can book the service.
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Firstly, ensure everyone is okay. If there are any injuries or anyone is in danger, call 000 immediately.
Once everyone is safe, call us and choose line 2. This is our 24 hour accident and breakdown line. We will be able to advise you on what to do next.
While at the scene, ensure you collect the other driver’s information such as driver’s licence number, phone number, email address and home address. Please also take photos of the accident.
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We encourage all customers to sign up for their own toll account directly with Linkt.
If you use a toll road without a toll account, we will receive a paper toll notice which we will nominate to you. A toll convenience fee will apply.
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Our cars can be used within our 150km zone
You must apply to leave the zone 2 weeks in advance.
If approved, you will need to provide your travel dates and pay a refundable travel bond.
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By default, our payments are weekly.
You can request to change your payments to weekly or fortnightly, provided that your payments are made in advance.
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Our Points buy cars have a minimum period of 60 days.
If you need a car for less than 60 days, we have short term rental cars available. You can find out more about short term rental cars here.
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¹ Personal customers can Points Buy any available car, but not the car they are driving. Business customers can Points Buy any available car in addition to the car they are driving.
² If you cancel within the first 60 days, short-term rental rates apply. Short-term rental rates are higher than long-term rate