How Much Does It Really Cost to Own a Car in Australia in 2025?

 

For many Australians, buying a car is one of the biggest financial decisions after purchasing a home. But what often gets overlooked is the ongoing cost of keeping that vehicle on the road. In 2025, with rising fuel prices, increased insurance premiums, and evolving technology, the true cost of car ownership is higher than most people expect.

In this post, we’ll break down the major expenses, highlight some hidden costs, and help you decide whether owning a car is still the right choice for your lifestyle.

The Upfront vs. Ongoing Costs

While the sticker price of a car grabs attention, ongoing costs make the bigger dent in the budget. Here’s what Aussies typically face:

  • Registration and CTP Insurance – mandatory yearly expenses that vary by state.

  • Stamp Duty – charged at the point of purchase, influenced by the car’s value.

  • Fuel or Charging – fluctuating petrol and diesel prices versus electricity costs for EVs.

  • Insurance Premiums – higher for younger drivers and those in metro areas.

  • Maintenance and Servicing – regular check-ups, parts replacement, and new tech-specific servicing.

Fuel and Energy in 2025

Petrol prices have been volatile, stretching the weekly household budget. Electric vehicles (EVs) offer cheaper running costs in some cases, especially if you charge at home during off-peak hours. However, public fast-charging can be pricier and adds up quickly for long-distance drivers.

Insurance and Servicing Costs

Car insurance in Australia has continued to rise with inflation and accident claim trends. On top of that, servicing has become more complex as cars integrate advanced driver-assistance systems and hybrid technology. EVs often need fewer moving parts serviced, but battery health checks and software updates are emerging expenses unique to electric cars.

Depreciation: The Silent Expense

The hidden giant of car ownership costs is depreciation. On average, new cars in Australia lose 40–50% of their value within five years. That means the resale value of your vehicle should be a major factor when choosing which car to buy.

Alternatives to Traditional Ownership

More Aussies are exploring alternatives, especially in urban areas where public transport and e-bikes are viable options. Car subscription services and car-sharing platforms are also growing, offering flexibility without the long-term financial burden.

The Bottom Line

Owning a car in Australia in 2025 is about much more than the initial purchase price. From insurance and fuel to servicing and depreciation, the total cost adds up quickly. Before making your next move, it’s worth exploring all options — whether that’s a fuel-efficient hatchback, a new EV, or even rethinking if full-time ownership is necessary.

For a deeper dive into the true cost of owning a car in Australia in 2025, check out this detailed guide: How Much Does It Really Cost to Own a Car in Australia in 2025.

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