Save
Do you really need a car?
Owning a car costs the average Australian $7,232 every year – but with the average owner also indicating they spend less than four hours a week driving, it raises the question: “Do we really need it?”
Do you really need a car?
Owning a car costs the average Australian $7,232 every year – but with the average owner also indicating they spend less than four hours a week driving, it raises the question: “Do we really need it?”
Research commissioned by car-sharing service Popcar has revealed that more than half of Australians (52 per cent) consider car ownership a financial burden, and are consequently worried about the financial pressure of running a car.
Dr Parvinder Kler, director of the Sustainable Energy Policy Cluster at Griffith University, said the research showed that many Australians feel a heavy financial burden with the car upkeep and would prefer to save the worry and money associated with car ownership.
“But it’s often a habit that is hard to break,” he conceded.
“Australians chose car ownership for the freedom and convenience to get around – from the grocery shopping to driving to work.”
Eight in 10 Australians purchased a car for the convenience of getting around easily, despite only using their car for less than four hours per week.
“In reality, Australians are wasting a lot of money on their cars when comparing the cost against how short the amount of time that people spend driving their cars,” Dr Kler said.
He considered another factor that puts some people under financial pressure “is not realising the ongoing, long-term costs of owning a car before purchasing one”.
According to the research results, more than one in three Australians do not consider the long-term costs of owning and maintaining a car before purchasing one, which could in turn be impacting on their disposable income.
The research director said this is “easily done with the high and fluctuating price of fuel or unexpected maintenance costs for instance”.
Three in four (75 per cent) of the respondents surveyed said they want to be able to put more money into saving for the future or going on a holiday (70 per cent).
“Getting rid of your car is the easiest and fastest way to make some noticeably big savings on a yearly and even daily basis,” Dr Kler offered.
“There are many alternatives to traditional car ownership, which are convenient and cheaper, but there is still work to be done to change the concept of car ownership.”
The research revealed that the most common car trips are for grocery shopping (71 per cent), commuting to work (50 per cent), or socialising with friends and family (43 per cent).
Twenty-five per cent of respondents also perceived car ownership to be a sign of success, an attitude more prevalent among older Australians.
About the author
About the author
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more
Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more
Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
