Cost of Running a Car in Sydney – Australian Credit & Finance

  • Posted 28 Jan

Cost of Running a Car in Sydney – Australian Credit & Finance

When buying a car in Sydney, don’t just look at the list price – that’s just one factor in the overall cost. In order to figure out just how much you’re going to have to pay for your car in total, the running costs are just as significant.

Most of the costs you’ll already be expecting, while others may not have come into your calculations at all. But it’s not just about the type of running cost, but also which factors cause these to fluctuate considerably.

Consider Car Model and Type

The model and type of car you buy has a significant impact on how much you’ll end up paying over time. According to the RACV, a medium car will cost around $200 per week to run, for example.

Compare this to the average 4WD Ute, which costs $250/week. Over a whole year, this makes quite a difference.

The model you decide to drive is also important. Consider this NRMA study of average running costs in Sydney – the difference between a Mitsubishi Mirage and a Mercedes Benz C63 is drastic. The fancy name may be impressive, but is it worth the additional expense?

Fuel Consumption

For many Australians, fuel makes up a large percentage of our monthly bills. Compared to other cities, Sydney is particularly expensive. Before you decide to buy that beautiful sports car, remember that you’ll be paying over the odds compared to a similarly sized family vehicle. Economy over looks it’s the most cost-effective way to go.

Loan Repayment

Unless you buy a car outright, you’re going to have to make a loan repayment on a regular basis. More important than whether you can afford the monthly payments, is whether you’re getting a good deal.

Australian Credit and Finance offer loans that are structured to offer you the most competitive rates in the market combined with monthly repayments that fit with your needs and budget. Contact us for more information.

Service and Repairs

Your car may have a low sticker price, but that doesn’t mean the upkeep will be equally cheap. You can probably guess that newer luxury cars use more expensive parts and will land you with significant repair bills at some point.

However, what most people overlook is that older second-hand models may be just as expensive, if not more so.

The reason for this is that as a car ages, the parts become harder and harder to source. This makes it more costly to get a hold of required parts, and so imports become a common (and expensive) necessity.

Car Depreciation

This is one ‘virtual’ running cost that many people fail to consider when purchasing a new vehicle. Car depreciation is the value that a car loses over time. Perhaps contrary to assumption, this figure can vary significantly depending on the car you’ve purchased.

The amount by which your car depreciates has an adverse effect when it comes to selling it. If you’re planning on keeping your car for many years, this may not be a relevant consideration.

Keep in mind that the percentage lost on a yearly basis does not have any bearing on car quality, but simply reflects the current market conditions.


Every vehicle on the road requires insurance, no exceptions. You should always keep insurance at the forefront of your calculations, as estimates can vary by a great deal depending on the model you choose.

To estimate how much you’re likely to pay, consider the following criteria for your chosen vehicle:

  • Safety Rating
  • Crash Rating
  • Collision Damage Levels
  • Average Repairs

More expensive vehicles will also require higher insurance premiums, as parts and repair costs are not cheap. If you would like more information, please see our dedicated car insurance guide.

If you need advice on the cost differences between types of vehicles or financing to make your purchase possible, the team at Australian Credit and Finance is ready to help.

We have a wealth of experience on what works depending on your budget and needs – we can help you secure a loan that offers both competitive interest rates and affordable monthly payments. Get in touch with us today.

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