Ditching your wheels could provide a surprise boost to your household budget.
Recent research from comparison website comparethemarket.com.au has shown that the average CBD worker who drives to the office spends up to $14,000 a year.
The study used a base Toyota Corolla priced from about $26,000 and worked out the yearly repayments, insurance, registration, servicing and roadside assistance costs. But the study also worked out the annual cost of petrol, tolls and parking associated with the use of the vehicle.
On average drivers in Sydney paid the most with a total yearly expense of $14,051. This was followed by Melbourne ($13,252), Brisbane ($12,442), Adelaide ($11,576) and Perth ($11,548).
Comparethemarket’s money expert, Rod Attrill, believes that the cost of owning a car can exceed half its actual value in just one year.
“When you consider that a brand-new Toyota Corolla costs about $26,000, keeping your car running can siphon about half of that amount in just a year for those who regularly drive in the city,” says Attrill.
“Almost a quarter of our car expenses are in petrol and car insurance, so it’s crucial consumers take a good hard look at how they can save in these areas.”
Sydney and Melbourne both suffered from higher comprehensive insurance costs paying more than $1000 a year. The other capital cities paid about $400 less a year to insure their vehicle.
Sydney drivers are slugged the most for tolls with the average cost north of $2000 a year, or about $40 a week. And with new toll roads coming online in the next few years Sydney drivers will only pay more.
Adelaide and Perth drivers both benefited from a lack of toll roads in their cities.
However, Adelaide residents are hit with the highest on-street parking rates at close to $1000, while Sydney and Melbourne divers paid about $750. This is based on the driver parking for an average of two hours a week on the street in the CBD.
Perth motorists paid the most in registration with an average cost of $919. Melbourne was the next highest ($835), followed by Sydney ($822).
The Western capital was also the most expensive to maintain and service a car with an average cost of $837. The cheapest was Adelaide at only $599.
Petrol expenses were stable across the country with the average cost of about $1900 a year.
One area not analysed by the survey is depreciation, which can severely impact the value of a car in the first few years of ownership. Last year Queensland’s main motoring body (RACQ) revealed that depreciation could add up to $100 a week to the cost of owning a vehicle.
Originally published as The surprising cost of driving to work