Is Australia really the cheapest country to own a car?
Read this before trusting the next ‘expert’ survey that comes your way.
Considering how much new and used car prices are rising at the moment you might be surprised to find out a recent UK study has found Australia is the most affordable country to own a car.
It’s a comforting headline, but is it true? Really, it depends on how you choose to construct your research.
For example, one survey by UK website scrapcarcomparison.co.uk based its findings on a comparison of 40 countries where cost data was readily available for earnings, car price, insurance, repair and fuel. The results ultimately revealed the percentage of each country’s average yearly salary (per person) required to purchase and run a new car.
Australians, the survey found, were required to spend just under half the average yearly salary (49.48%) to own and run a car, with the USA in second place.
The other side
So, is Australia really a car-buying Nirvana? The Australian Automobile Association, of which the RACV is a member, publishes a quarterly report - the Transport Affordability Index - that indicates there might be trouble in paradise.
The reports latest findings for the second quarter of 2021 reveal that average Australian household spending on transport costs are at their highest level since research first began five years ago, rising to almost $361 per week.