What does it cost to buy and run a car?

New Cars

New cars generally cost around the same in Australia as in most European countries and up to twice as much as in the US, particularly imported cars, on which there’s an import tariff (reduced to 5 per cent from 1st January 2010). For example, a small hatchback costs from around $17,000 and a family car from around $33,000. In 2009 – as in most countries – there was a slump in new car sales and buyers could negotiate a good deal.

   A number of foreign manufacturers make or assemble cars in Australia, including Ford, Holden (General Motors), Mitsubishi, Nissan and Toyota, which comprise over 75 per cent of the new car market, although other Asian manufacturers are starting to establish a foothold. Ford and Holden models are among the most popular and consequently the cheapest for spares and repairs. Note, however, that local models are often different from those available in other countries, as manufacturers style their cars according to what the local market demands (Australians are proud of their home-grown models, particularly ‘classic’ Holdens).

Used Cars

If you want a reliable old car, it’s best to buy a Ford Falcon or Holden Commodore, which are engineered to survive Australia’s rough outback roads, and have strong six-cylinder engines and relatively inexpensive parts that are easy to obtain. Second-hand parts for most older Australian-made cars can be picked up cheaply from car breakers’ yards throughout the country. Estates and panel vans are popular among travellers, as you can put a mattress in the back. Imported cars (e.g. German and Japanese) are generally considered more reliable than Australian-built cars, although they’re also much more expensive. Expect to pay from $1,000 for an old ‘banger’ (which should, however, be mechanically reliable) and from around $5,000 for a decent second-hand car that should last a number of years.

   All used cars must be fitted with an immobiliser before transfer of ownership, if they don’t already have one. It’s important to contact the state Registry of Encumbered Vehicles/REV (13-3220, local rate), who can tell you whether a car is under finance or has been stolen or if there are any outstanding fines (e.g. parking) against it (when you buy a car, you assume responsibility for any outstanding fines). This is a free service and for just $12 you can obtain an REV Certificate proving that there are no charges outstanding. As an alternative to buying privately or from a dealer, it’s possible to buy at auction, although this isn’t recommended unless you’re an expert mechanic.

Cost of Petrol

In autumn 2009, fuel prices in urban areas were from around $1.05-1.20 per litre for regular unleaded petrol and around 5¢ a litre more for diesel and premium unleaded. Fuel prices vary from area to area, even within cities; in country and outback areas (where petrol stations are few and far between) and Tasmania, prices are around 10-15 cents higher than in cities (generally, the more remote the area, the dearer the fuel). Petrol is usually cheapest at supermarkets. You can check the lowest price in your area via the Motormouth website (www.motormouth.com.au). Many petrol stations also sell two-stroke petrol for boats, lawn-mowers, mopeds, etc.

   In recent years, there have been claims of price fixing by the major oil companies, particularly in 2008 when oil was around $150 a barrel. However, the big four companies, Ampol, BP, Mobil and Shell, are permitted to own and operate only 4 per cent of the stations carrying their name, where they can fix the prices. The remaining outlets are franchises, which buy petrol from oil companies at a wholesale price and set their own prices.

   Many cars in Australia have been converted to run on liquid petroleum gas (LPG) or propane, including most taxis and buses. Most petrol engines can be converted to use both petrol and LPG (they can be switched between them), although you lose around a third of your boot space to accommodate the gas tank. The advantage is that LPG costs from around 60 cents a litre, although there’s a loss of power of around 15 per cent. All urban areas and most large country towns have LPG outlets.

For more information see Living and Working in Australia by David Hampshire