Fuel prices increases car ownership expenses in 2019

Car ownership has gotten more expensive this year according to RACV's annual Driving Your Dollars survey, which uncovers some of the hidden costs of buying a new vehicle.

RACV's data reveals that on average, Victorian motorists are paying $223.14 a week for their car, an extra $2.27 when compared to last year's average, translating to an approximate 1 per cent rise in costs.

Most costs associated with car ownership have increased, especially fuel which is slugging Victorians with on average an extra $126.26 a year.

RACV's Manager Vehicle Engineering Michael Case said the annual survey takes the mystery out of owning and operating a car and demonstrates the substantial costs of vehicle ownership.

"Running for 50 years, the Driving Your Dollars survey highlights the various costs associated with owning and operating a vehicle. The results remind drivers that a car continues to cost you, every week and every kilometre, and goes beyond your fuel fill-up."

A breakdown of this year's data also reveals that depreciation has the biggest impact, making up more than 40 per cent of overall costs.

While many people mistakenly presume fuel is the biggest individual cost, it in fact counts for the third largest cost in 2019 at 13.5 per cent, behind the significant expense of on-road costs which constitutes 23 per cent.

For the first time, RACV has launched on its website a Car-Culator tool for motorists to explore the charges drivers are likely to face for Victoria's most popular vehicles.

"The cost of owning a car doesn't end after the purchase price, with many people neglecting the impact depreciation, on-road costs and loan repayments have on the hip pocket. That's why we have developed a tool for drivers to see what Victoria's most popular cars will cost them per week to run and operate," said Michael.

"RACV is encouraging all drivers to use the Car-Culator, especially if they are in the market for a new car."

The Kia Rio is the most affordable car to own and run in Victoria, with the light hatchback recording the best result out of a field of 141 models in 14 categories, beating smaller cars from the micro segment, including its Picanto stablemate.

For more information and a breakdown of the results, visit www.racv.com.au/on-the-road/buying-a-car.html#operatingcosts

Written by RACV Corporate Communications (03) 9790 2572
July 22, 2019