There are benefits to downsizing your car, but it pays to thoroughly consider your personal circumstances before making the swap.
Just like with homes, many people decide to downsize their cars as their needs change over time.
Car running costs as well as lifestyle changes such as switching careers or moving residences are also reasons that households might consider downsizing one or more vehicles. For example, that large SUV might have been perfect when living regionally, but a move to a metropolitan area could make a hatchback more economical to run, and easier to drive and park.
Swapping to a smaller vehicle can have a host of benefits, with light or small cars often more fuel efficient without compromising on comfort or features. They can also be cheaper to maintain and service. According to RACV’s latest Car Running Costs Survey, the average monthly running costs for light cars, small cars and small SUVs is less than $1,100, while the average monthly running costs for medium cars, medium SUVs and large SUVs is over $1,300.