What are the costs of running a car in Sydney?

Sydney and Melbourne are the most expensive cities in Australia to run a car. The top 3 costs for a vehicle owner are car loans, fuel and insurance. If you have a loan, you could spend $211 or 69% more every week than someone without a car loan. We look at all the costs of running a car in Sydney.

Is owning a car in Sydney affordable?

Sydney is one of the least affordable cities to own a car. The Australian Automobile Association (AAA) says households in Sydney pay the most in Australia, spending $564 a week on getting around. Melbourne follows closely behind at $562 per week.

Transport takes up 16.3% of a Sydneysider’s average income, which is lower than Melbourne but more than Brisbane.

Hobart, at 18.9% of average income, is the least affordable city for owning a car.

Note, if a household doesn’t use public transport, these figures increase. AAA affordability statistics for December quarter 2024 are based on a notional family. They have a car loan, pay tolls 3 days, and take public transport on other days to save money.

What are the highest costs of owning a car?

The highest costs of owning a car in Sydney are:

1. Car loans – Car loans inflate the total cost of owning a car in Sydney by 69%.
2. Fuel – Fuel continues to be expensive. Use our fuel price calculator to find the cheapest possible fuel prices near you.
3. Motor insurance – This is comprehensive or third party property insurance, not CTP green slip insurance.

What are the costs of running a car in Sydney?

The costs of running a car include car loan payments, fuel, motor insurance, tolls, servicing and tyres, registration/licensing and green slip, and roadside assistance.

 *These totals don’t include $50 public transport cost.

Some of these costs are your choice and some, like registration/licensing and green slip, are mandatory.

How much does it cost to register a car?

Registration is a relatively small contributor to the cost of owning a car in Sydney. Registration in NSW currently costs (at March 2025):

• $79 for a car, station wagon or small bus, and
• Vehicle tax paid on the weight of the vehicle, starting from $266.

Register your car. 

How much is my green slip?

The rolling 12-month average cost of a green slip in NSW is $599.

The cost of your green slip in NSW is variable and depends on you, type of vehicle and your driving history. Find out more about how green slip prices are set. 

We used the greenslips.com.au Calculator to calculate the cost of a green slip for a good driver and a driver with one demerit point. 

In Sydney in March 2025, our good driver spends around $514 to insure a Honda Accord and $781 for a Ford Ranger. The driver with one demerit point could spend around 30% more.

Note, it is usually more expensive to register and insure a ute or light goods vehicle than a motor car.

Calculate your green slip now.