Buying a new car is a huge thrill. After using a car loan calculator, securing your finance and picking out the make and model you want, getting the keys and taking your new ride out onto the open road is a feeling that’s hard to beat.
But then the bills start to come in. You’d budgeted for your loan repayments, of course, but then you get hit with a rego bill, insurance renewal and you have to take the car to the mechanic because of that weird noise or the warning light in the dashboard.
You quickly learn that the sticker price on a car is only the first fee. How much does it really cost to own a car in Australia?
Annual costs
Every car in Australia has to be registered annually to be legally driven. There’s no universal cost, with each state setting their own rates.
For example, in New South Wales you pay $79 rego fee, plus a vehicle tax depending on your car. This is somewhere between $255 and $1397 depending on the vehicle’s weight. A small city car is going to be a lot less than a ute or luxury SUV. Cars used for business purposes also cost more.
Western Australia also charges by weight, with a standard sedan costing $475.12 + admin fee.
Queensland’s fees depend on the number of cylinders in your car. Three or fewer and you’ll pay $646.70. More than nine and you’ll be charge $1170.10. Tasmania also charges by cylinder, with a drop after your first year. A three-cylinder car costs $612.42 then $578.18 for a renewal, plus taxes and fees of around $400. NT has a similar measurement, with 12-month rego ranging between $672.25 and $841.25 for four-cylinder cars.
Victoria does things differently, charging you depending on whether you live in a rural, out metro or metro area. 2025 costs range from $780.10 to $906.60 for personal vehicles. South Australia has a similar scheme, with ‘country’ and ‘metro’ rates.
Things cost a bit more in Canberra, with the average rego costing $1240 a year.
On top of that, you have insurance costs as well. This varies depending on your age, location and driving history. Queensland has the lowest average insurance, with Compare the Market stating that average annual fees are $1028.40. By contrast, the highest average is in NSW where it’s $1440.
Most drivers pay for some sort of roadside assistance, too. While you may get this through your mechanic or insurance, the current cost with NRMA is $258.88.
Ongoing costs
The biggest ongoing cost for a driver is found at the servo. According to Car Expert, the average Aussie household pays $5275 a year on fuel – a touch over $100 a week, making it one of the biggest expenses you’ll face with your new car.
Other than driving less, there’s only really one way to reduce this cost – go electric. The Electric Vehicle Council says that an EV owner is likely to pay only $500 a year if they drive 12,000 km or less.
And with Australia’s EV charging network growing quickly, it’s never been easier to have an electric car.
Other regular costs may include parking and tolls, especially if you have to pay when you drive into work.
Optional costs
Car upgrades can increase your auto spending, but these are completely optional. One of the most common choices is a personalised licence plate. The costs for this varies by state.
In Victoria, you’re likely to pay from $185 for a thinner plate while a custom plate (perhaps showing your support for your team) starts at $545. These are one-off costs and do not have annual repayments.
This is different in NSW, where you pay a transfer fee (from $107), a style cost (from $199) and then an annual cost (either $121 or $499 depending on the style of plate).
South Australia is the only other state to charge annual fees, with theirs starting at $235.
Unexpected costs
The cost of repairs and maintenance can have a huge impact on your expenses and is one of the main talking points when considering buying a new car or a used one.
Obviously a new car will cost more, but it’s unlikely to need any major repairs. Most come with a warranty as well, meaning you won’t have any huge out of pocket expenses in the first few years. Most makes offer five to seven years for warranty. MG and Mitsubishi are the best with 10 years, while Fiat and Ram are at the lower end at just three years.
If you’re buying a second-hand car within its warranty period, that should transfer to you but it’s worth checking the terms and conditions of the manufacturer.
When you drive a car that’s out of warranty, you can typically expect to pay $500-$1000 a year on issues that pop up. But if you’ve already budgeted to pay for new tyres that year and then your compressor fails and your air con stops working in summer, you’re looking at around $1500 just for that.
Car finances
Buying a new set of wheels is about more than just getting car financing. While many of your costs may stay the same, if you’re buying a bigger or more powerful car, your rego is likely to go up as will your fuel needs. Make sure you budget for all these changes so you’re not left stretched after the purchase.
