How much does a car really cost in Australia in 2026?

Buying a car is only part of the cost of having one on the road. Registration, insurance, fuel or charging, servicing, tyres, repairs and depreciation can all add to the total, along with loan repayments and fees if you finance the purchase.

So, how much does a car really cost to own in Australia? There isn’t one figure that applies to everyone. Your costs will depend on the car you choose, where you live, how far you drive and how you pay for it. This guide breaks down the main costs to help you build a more realistic car budget.

How much does it cost to own a car in Australia?

There is no single average running cost that will apply to every Australian driver. The amount you spend will depend on your vehicle, where you live, how far you drive and expenses such as insurance, registration, servicing, parking and tolls.

For context, the Australian Automobile Association estimated that a typical two-car household spent $448.11 a week on fuel, insurance, registration, servicing and tyres, tolls and roadside assistance in the June quarter of 2026. This figure excludes public transport costs, which are included in the AAA's total household transport cost of $459.96 per week. That’s approximately $23,302 a year. These figures are a benchmark rather than an estimate of what every household will spend.

Source: Australian Automobile Association Transport Affordability Index, Q2 2026. Figures relate to the AAA’s model household and exclude public transport costs. They will not reflect every household’s costs.

The best way to estimate your own annual cost is to add up the price of:

• Registration, CTP and other insurance;
• Fuel or electricity;
• Servicing, tyres and repairs;
• Parking and tolls;
• Depreciation; and
• Loan repayments and fees, if applicable.

How much does it cost to buy a car?

Money.com.au reports that the average car loan in its 2026 data is $36,419 across vehicle types. The average is $48,062 for new-car loans and $31,890 for used-car loans. These figures represent amounts borrowed, rather than the average purchase price of a car.

Common upfront costs of buying a car include:

• The purchase price or deposit;
• Stamp duty, which varies by state or territory and may depend on the car's value, type or emissions;
• Registration and transfer fees;
• A roadworthy or safety inspection where required;
• A pre-purchase mechanical inspection for a used car;
• Insurance from the day you take ownership; and
• Immediate work such as tyres, a service or replacing a second key.

If you’re buying a new car a useful tip is to ask for the drive-away price and check what it includes. If buying privately, your state government may have a free registration quote tool that can allow you to estimate the costs of registration and stamp duty before purchasing.

If you're buying a used car, particularly through a private sale, consider doing a Personal Property Securities Register (PPSR) search before you buy. A $2 PPSR vehicle search can tell you whether a security interest is registered against the car and may also show whether it has been recorded as stolen or written off. It does not tell you the amount of finance owing on the vehicle.

Related articles:

Should you buy a car that’s under finance?
Used car buying checklist

What is a Car Loan?

A car loan is finance used to help pay for a vehicle. You borrow an agreed amount and repay it over an agreed term, with interest and any applicable fees.

Car loans can differ between lenders, including whether the vehicle is used as security, the available loan amounts and terms, interest rates, fees and vehicle eligibility requirements. Comparing the total cost of different options, not just the regular repayment, can help you understand what you would pay over the life of the loan.

Money.com.au’s 2026 research found that 26% of Australians surveyed had used car finance for their most recent car purchase.

At Jacaranda Finance, we offer fixed-rate car loans from [CarLoanMin]-[CarLoanMax] with loan terms of 25 months-48 months.

What are the ongoing costs of owning a car?

The main ongoing costs of owning a car are vehicle registration, compulsory third party cover, insurance, fuel or charging, servicing, tyres, repairs and, if you accessed finance to purchase the vehicle, repayments and fees. Parking, tolls and roadside assistance may also be regular expenses.

Registration, licensing and CTP insurance

In Australia, there are some compulsory expenses in order to own and operate a vehicle on the road. This includes registration for the vehicle, maintaining a valid driver’s licence and having coverage under a compulsory third party (CTP) insurance.

The amount that you pay for each of these costs will depend on where you live within Australia. For example, in some states CTP may be included in the cost of registration, while in others it’s required to be arranged separately. The best way to determine the cost of registering your vehicle and maintaining a valid driver’s licence is to reference your state government’s website.

Car insurance

While CTP insurance is mandatory, it does not replace third party property or comprehensive insurance. Unlike CTP which is sometimes included in the cost of your vehicle registration, third party property and comprehensive car insurance are optional and need to be arranged directly with an insurer. If you’re financing a vehicle, check the loan conditions carefully, as the lender may require comprehensive insurance.

Third party property insurance is typically the most basic level of optional property insurance and will normally provide coverage for accidental damage caused to other people’s cars or property. On the other hand, comprehensive car insurance is usually the highest and most extensive level of optional insurance cover and may cover you for accidental damage to your own car (regardless of fault) as well as other people’s cars or property.

The price of insurance may be influenced by the vehicle, driver’s age and history, location, where the car is kept and the chosen excess. It’s important to compare options when selecting insurance to ensure that it fits comfortably into your budget while also providing you with the level of coverage you need.

Fuel or electricity

Your fuel cost depends on kilometres driven, the car’s fuel consumption and the current price per litre. Estimate your annual fuel cost with this formula:

Annual fuel cost = annual kilometres ÷ 100 x your car’s average fuel consumption (L/100km) x current price per litre

For example, 12,000 kilometres a year in a car using 7.5 L/100 km at $2.00 a litre would cost about $1,800 a year, or $34.62 a week. This is illustrative only; prices and consumption vary.

To calculate the average electricity cost for an electric vehicle, use kilometres driven, energy consumption in kWh/100 km and your charging price. Include public fast-charging if you expect to use it, rather than assuming every charge will be at a lower home electricity rate.

Servicing, tyres and repairs

Routine servicing helps keep a car safe and may protect a manufacturer’s warranty. The cost of a car service will depend on your car’s make, model age and kilometres. Tyres, batteries, brakes and other items will also wear down over time and require maintenance or replacing.

If you’re shopping for a new car, it could be worth considering something that offers capped-price servicing. This can make the cost and frequency of your services more predictable and give you time to plan ahead.

If you’re planning to shop second-hand, it’s a good idea to review the log book and arrange an independent inspection before agreeing to a deal.

Related articles:

The 10 most common car repairs in Australia
The 5 most expensive car repairs

Parking and tolls

Because they’re often small transactions, these costs can be easy to overlook. However, over time they can add up, particularly when you account for commuting, toll roads and places where paid parking is required.

Parking and toll costs can vary significantly by location and route. For example, Brisbane City Council currently lists an early-bird weekday rate of $28 at King George Square Car Park. In Sydney, toll costs vary according to the roads used, distance travelled and vehicle class, so it’s better to estimate regular journeys using the NSW Government’s toll calculator rather than relying on a single daily figure.

If parking or toll roads are part of your normal commute, include them in your weekly or monthly car budget rather than treating them as occasional expenses.

What is depreciation, and why should it be in your budget?

Depreciation is not a regular bill, so it's different from costs such as fuel, registration and servicing. However, it affects how much money you may recover when you eventually sell or trade in the vehicle.

The rate for depreciation is variable, and can be affected by a car’s make and model, age, kilometres, condition, demand and warranty. It’s heavily influenced by both the used car and new car markets and decides what your car is worth to the market at a given time.

Depreciation can be particularly significant in the first few years of owning a new car. In 2026 Canstar estimated that a new vehicle may lose 10-15% of its value immediately after purchasing it, and a further 10-15% over the following year.