Owning a car in Sydney is a sizeable financial commitment, making it the most expensive city in Australia for car owners. The biggest expenses—car loans, fuel, and tolls—can add up quickly. If you’re financing a car, your weekly costs could be up to 56% higher than someone without a loan. So, what does it truly cost to run a car in Sydney, and how can you manage these expenses effectively?
What are the costs of running a car in Sydney?
Running a car in Sydney involves several recurring costs, some of them unavoidable, while others can be managed or minimised. Here’s a breakdown of the typical expenses you can expect:
| Per week | Per year | |
| Car loan payments | $185 | $9,644 |
| Fuel | $94 | $4,883 |
| Tolls | $83 | $4,305 |
| Insurance | $39 | $2,013 |
| Servicing and tyres | $34 | $1,790 |
| Registration, licensing and CTP | $25 | $1,297 |
| Roadside assistance | $2 | $121 |
| Total with car loan | $513 | $26,653 |
| Total without car loan | $328 | $17,009 |
Is owning a car in Sydney affordable?
Owning a car in Sydney can make a dent in your budget. According to the Australian Automobile Association (AAA), the average household in Sydney spends about $486 per week, or nearly $25,300 annually, on car-related expenses. This represents 15.5% of average household income. When compared to other cities, Brisbane is the least affordable, with car expenses taking up 17.0% of average income, while Melbourne sits at 16.5%
| City | Weekly Cost | Annual Cost | Percentage of income | |
| 1. | Sydney | $486 per week | $25,225 per year | 15.5% |
| 2. | Melbourne | $464 per week | $24,109 per year | 16.5% |
| 3. | Brisbane | $458 per week | $23,836 per year | 17.0% |
If you rely solely on your car and don’t use public transport, these costs could be even higher. The AAA statistics for the November 2022 quarter are based on a typical family scenario in Sydney, where the household has a car loan, incurs toll charges on 3 days of the week, and uses public transport on other days to manage expenses.
What are the biggest costs of owning a car in Sydney?
Owning a car in Sydney comes with several hefty expenses, with car loans topping the list. Taking out a car loan can increase the overall cost of ownership by as much as 55.5%, making it the largest expense for most car owners in the city. The financial burden of repaying a loan, combined with interest rates, takes a large slice of your weekly and annual budget.
Following car loans, fuel costs are the second-highest expense. With fuel prices at record highs and showing no signs of a decent fall, managing this cost becomes crucial for Sydney drivers. To help keep these expenses under control, you can use our fuel price calculator to find the lowest prices at stations near you.
Tolls are the third biggest cost for car owners in Sydney, closely behind fuel expenses. As toll prices increase with inflation and regular quarterly hikes, they could overtake fuel as the second-largest expense. For those who own their cars outright and don’t have a loan, tolls can quickly become the single, highest cost. It’s essential to stay informed about toll charges and consider alternative routes where possible to save money.
Understanding your registration and green slip costs in NSW
When registering a vehicle in New South Wales (NSW), there are several costs to consider. As of September 2024, the registration fee for a car, station wagon, or small bus is $79. A vehicle tax is applied on top, which averages around $295 for a medium-sized car, depending on the vehicle’s weight.
The cost of a green slip, or Compulsory Third Party (CTP) insurance, varies widely based on several factors, including the type of vehicle, your driving history, and your location. It’s important to understand how these prices are determined to ensure you’re not overpaying.
For instance, using the greenslips.com.au Calculator, we compared the cost of a green slip for a driver with a clean driving record against a driver with one demerit point. While a single demerit point can lead to a noticeable increase in green slip prices, not all insurers treat demerit points the same way, and price hikes can vary widely.
On average, the cost of a green slip in NSW is around $490. However, specific prices can differ based on the vehicle type. For example, a good driver in Sydney might pay approximately $439 to insure a Honda Accord but could face a cost of $701 for a Ford Ranger.
| Ford Ranger | Average | Honda Accord | Average | |
| Good driver | $674-$1,126 | $823 | $429-$733 | $513 |
| Driver with one demerit point | $846-$1,126 | $990 | $466-$733 | $622 |
Summary
Owning and running a car in Sydney involves several big costs, including car loans, fuel, tolls, insurance, and routine maintenance. Understanding these expenses and how they add up can help car owners better manage their budgets and find opportunities to save.
By comparing costs across different categories, such as green slips and registration fees, and using fuel price calculators and alternative routes to avoid tolls, Sydney drivers can take proactive steps to minimide their car-related expenses. With careful planning and smart financial choices, you can reduce the overall cost of car ownership and make it more manageable.
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