How much does it cost to run a car in Australia per year?

For a typical $35,000 car driven 15,000 km a year, total running costs are roughly $9,000-$10,000 per year once you include fuel (around $3,120), registration and CTP (around $850), insurance (around $1,200), servicing (around $700) and depreciation (around $5,250). That works out to about $175-$190 a week. Industry running-cost data from motoring bodies like the RACV and NRMA puts mid-size and SUV vehicles in a similar range.

What is the biggest cost of car ownership?

Depreciation is usually the single biggest cost of owning a car, especially in the first few years. A new car can lose around 15% of its value each year early on, which for a $35,000 car is over $5,000 a year — often more than fuel, rego, insurance and servicing combined. Because it is not a cash bill you pay each month, depreciation is the cost most people overlook.

How can I reduce my car running costs?

Buy a car that holds its value and a few years old to skip the steepest depreciation, drive fewer kilometres or switch some trips to public transport, shop around on insurance and rego, keep up with servicing to avoid major repairs, and choose a fuel-efficient or electric model. For work-related driving, a novated lease or claiming car expenses can also lower your effective cost.

Vehicle Running Cost Calculator

Work out the true annual cost of owning and running a car in Australia — fuel, rego, insurance, servicing and depreciation — plus cost per week and per kilometre.

Last verified: 5 May 2026

How much does it really cost to run a car?

Running a car costs far more than fuel. For a $35,000 car driven 15,000 km a year, total running costs come to roughly $9,000-$10,000 per year — about $180 a week — once you add registration, insurance, servicing and, the big one, depreciation. Source: indicative; consistent with industry running-cost data from motoring bodies such as the RACV and NRMA.

Worked example. $60/week fuel = $3,120/year. Add rego $850, insurance $1,200 and servicing $700 = $5,870 in cash costs. Then depreciation at 15% of $35,000 = $5,250 — more than fuel and everything else — for a total of about $11,120/year, or $214/week and around 74c/km over 15,000 km.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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