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You may stress about fuel prices, but when it comes to the other costs of running a car, many of us are happily in denial. That’s until you find out that you can save up to $200 a week to run your car. That’s enough extra cash in one year to take a luxury trip!
Ask five friends how much it costs to run their cars each week – including insurance, rego, service and repairs – and most won’t know. To give them (and you) a hand, NRMA has released the Vehicle Operating Costs Survey for 2006. |
According to the Survey, Australia’s most popular cars have soared to an average cost of $260 per week, with an increase of 10% in costs for popular makes like the Holden Commodore and Ford Falcon.
The huge differences in weekly operating costs between similar vehicles is astounding. For example, in the large SUV class, the Nissan Patrol Ti 4.8-litre six cylinder proved to be the most expensive in its class (and overall). However, if you owned a Nissan Patrol ST three-litre turbo, also a large SUV, you’d save a whopping $124.80 a week in running costs, or almost $6500 a year.
Overall, the cheapest car to run was the Kia Rio JB. The most expensive in its light class category is the Mazda2 Genki 1.5-litre hatchback, which costs $40 a week more. Add this up over a year, particularly if you’re on a tight budget, and the result could surprise you. To find out more about how the Survey works and what it covers, see box (below right). And if you don’t see your vehicle listed here, go to NRMA Motoring and click on ‘Operating costs’.
While fuel costs are on the increase and certainly take an unwelcome chunk out of your budget, there are a few other things you need to consider when it comes to running your car. These include:
Sale price
If you see a bargain price for a new car, it can mean some trade-offs. So, watch out for lower equipment levels and/or a lower ANCAP (Australasian New Car Assessment Program) safety rating. Beware of other pitfalls, too, such as a discounted sale price. You may be looking for a V6 but be lured into buying a discounted V8. But if it’s discounted because of rising fuel costs, it will ultimately end up costing you more.
Runout models can be a bargain too, but just remember they may not be as easy to replace. Also, if you exclude features like aircon to save money, it may make it harder to sell later on.
“A lot of people might look at the Toyota Prius hybrid as an alternative to the big six-cylinders, and obviously it has lower fuel consumption figures,” says David Carr of NRMA Motoring Information Services (MIS).
“But what a lot of people don’t factor in is that they’re paying more for the car to start with, and that can offset some of the advantages of lower fuel costs because you have to pay more upfront.”
Cost of insurance
Be mindful of your comprehensive insurance costs. For example, if you plan for an under 25 year old to use the vehicle, you can be hit with a dramatic increase in premiums. In addition, if your car has a low security rating or is parked on the street (rather than securely garaged), your insurance costs could be higher.
“Insurance can influence the cost of ownership dramatically,” says David. “Sometimes it’s very expensive for a particular make and model.”
To make sure you don’t get hit with any hidden surprises, get a detailed quote upfront.
Manufacturer’s service costs
How many services per year does the manufacturer recommend? Most only require one service per year, which helps to reduce costs and is more convenient. If your manufacturer recommends two or more services a year, make sure you find out why.
“You need to get a handle on the services and repairs,” says David. “What are the manufacturer’s recommendations for routine maintenance like changing filters, and what are the intervals for expensive things like timing belts, which can cost up to $600–$700?”
Fuel efficiency
The Survey also found that fuel costs in the past 12 months have increased by 27%; that’s an extra $7 per week in fuel if you drive a light car and an extra $17 per week for a large SUV. If you run a six-cylinder family vehicle, that’s $55 a week just in fuel.
One of the surprise results was the Falcon SR LPG four-door sedan at $197.57 a week (WOL*), the cheapest to run in the large car class. However, being a dedicated LPG vehicle with no petrol backup, it’s a better choice for urban drivers than regional drivers who may have limited LPG access, or only have service stations with high flow filling pumps. These are designed for trucks and are almost impossible to use with cars.
Also, try to avoid vehicles that require PULP, as it costs more and may not be available at all locations. Plan to buy your fuel at the low point of the cycle (usually a Tuesday) and do it regularly. Get into the habit of filling the tank before you drop below half full if you can. That way you won’t be forced to fill up when the price is high. To find the cheapest petrol in your area, visit NRMA Petrol Watch. But beware, some credit cards may attract a surcharge, which will add to the cost of filling up.
Availability of service and maintenance providers
Do you have to drive across town every time you need a service, or can you have your vehicle serviced locally? It can be inconvenient and costly to travel across town, particularly if there is a delay. Also, ask yourself if there is enough competition so you can shop around for the best price.
Depreciation
Accessories and/or modifications can actually decrease the resale value of your new car, or render it illegal or uninsurable, so before you go ahead and make any modifications, ask yourself what the 19-inch wheels or modified exhaust will really cost you. Also, is the car you have chosen a fashion statement? If it is, it may date quickly, particularly if it’s say bright pink or has a retro look.
Cost of tyres
Some manufactures promote space saver tyres and run flats saying they’ll save you space, but they may not save you money. You can’t use space savers over any distance, so you’ll have to replace it with a full-sized tyre almost immediately. There’s also the safety factors to consider with the use of space savers over certain distances.
Low profile tyres look great but can easily be damaged and expensive to replace, and run flats aren’t always repairable if punctured, so a nail in the tyre can really hurt the hip pocket.
A full-sized spare, however, can be used to extend the life of your tyres if used in the regular rotation of tyres.
If you are in the market for a new car, here’s a few things to keep in mind while you’re looking.
So before you buy your next new car, use NRMA’s Vehicle Operating Costs Survey in conjunction with advice about the suitability and performance from NRMA Technical Advice and you’ll have everything you need to make the right choice. The Survey is available at NRMA's Motoring and for NRMA Technical Advice, call 1300 655 443.
NRMA Vehicle Operating Costs Survey |
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NRMA’s Vehicle Operating Costs Survey is the largest of its type freely available in Australia, and covers capital costs; depreciation (the biggest vehicle cost, making up more than half a vehicle’s weekly costs); cost of funds (the loss of return on the capital used to buy the vehicle); fixed costs (rego, CTP insurance, comprehensive insurance and NRMA membership); and operating costs (fuel, tyres, services and repairs). David Carr of MIS used a sophisticated Motoring Costs Calculator to get the weekly running costs of over 450 vehicles in eight classes: four-cylinder light, small and medium; larger six-cylinder; people movers; and SUV compact, medium and large. He used in-depth analysis to produce weekly fuel costs, weekly running costs, a WOL cent-per-kilometre cost and WOL weekly running cost. (WOL stands for ‘Whole of Life’ and is based on one ownership cycle of five years, assuming the vehicle travels the national average distance of 15,000km per annum.) The Survey also includes a handy table that details changes in running costs for every five-cent difference in fuel prices (based on average Sydney fuel prices) for each class of car. For example, for a large SUV, a five-cent change in fuel prices will change the cost of running the car by 0.97 cents per kilometre, or $2.81 a week, and in a light car it’s a difference of 0.38 cents per kilometre, or $1.10 a week. Visit NRMA Motoring to find the operating costs for your vehicle. From October 1, you can go to My NRMA for a more specific evaluation if your car is less than five years old. Simply type in the make and year of your car, plus its average fuel price to find out how much it costs to run. |
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Mark Saving per week: $65 Age: 39 Single, no children Drives: Subaru Impreza RS 2.5L/small car Cost per week (WOL): $199.22 |
| Bruna Saving per week: $10 Age: 40 Married, two children Drives: Honda Jazz/light car Cost per week (WOL): $123.39 |
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Kate Saving per week: $24 Age: 43 Married, three children Drives: Toyota Prado GXL 2003/medium SUV Cost per week (WOL): $263.60 |
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