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Owning a Car in Sydney Australia - A Case Study

Updated on December 14, 2014

Price Comparison

I will begin by choosing the model of the car and the different manufacturers that offers them. In this, they have a dedicated page that deals with the cost owning a car based on a certain criteria. But for this case study, it will include additional factors that are relevant to the overall cost of owning a car in Australia. You can refer to the list below for the list and the details of these factors. The information given in these articles where consolidated from the years of experience and vehicle owner feedback and testimonials.

Cost Factors in Owning a Car

When buying a new car, the price is always inconsideration versus the overall cost of owning it. Let us get a run down on the factors that contributes to the overall cost of having a vehicle in Australia.

  1. Car Registration
  2. Compulsory Third-Party Insurance
  3. Comprehensive Car Insurance (if applicable)
  4. Mechanical Repairs and Maintenance
  5. Delivery Cost (if applicable)
  6. Government Fee and Taxes
  7. Fuel Consumption
  8. Value Depreciation after 5 years or 15,000 of mileage

These are some of the factors to consider when buying and owning a car. Car registration involves fees that are mandated by each region in Australia. New South Wales presents the highest car registration fees in all of Australia. This also includes additional government fees and taxes whichever are applicable for your chosen model. Taxes in New South Wales for vehicles are also the highest in Australia. If you think that buying a car in another region of the country to get some form of discount will not work because interstate transfer fees are required for the vehicle to be registered in another state.

Insurances for the vehicle is another another great factor every car buyer and owner should consider. In Australia, every vehicle owner is required to have their vehicle covered with a Compulsory Third Party (CTP) Insurance. The cost for this insurance is based on a strict guideline from the Australian Government. They ultimately decide on the prices of the CTP insurance. Other from this mandated insurance, some vehicles are also required to have another car insurance which will add to the vehicle cost. These insurances are often good for only one year. Annual renewal of the insurance is required that goes along with the vehicle registration. For the cheapest possible CTP insurance, this information website will be able to help owners save time and money. Saving money out of your car insurance will help you compensate for the additional expenses needed for you car.

Operational and Maintenance costs are needed to ensure that the vehicle is running in its best condition. Fuel, spare parts, and repair costs encompasses this factor. Considering that the prices for this items and services are constantly going up, it is safe to say that cost of owning a car can be difficult to maintain.

When it comes to selling your car and to bring back what little money it can, price depreciation is also part of this concept that we are trying to determine. Does the selling price of a car used in 5 years accounts for the brand new price? This is the question everyone wants to know the answer to but ultimately cars do not bring back the same investment that you put into it. They depreciate in rates that would be difficult to cope up with the price that we want when the time comes to sell it. The best thing to do is to keep the car in top shape and make it attractive to buyers that would love to buy you car for the price that you want. Then again this will incur another set of expenses that you will have to weigh down if it will be profitable when selling the car.

As for penalty payments due to traffic violations, this again will be added to your operational expenses. It would be best to avoid having violations because this will mean that you will have to pay more for the CTP insurance of your vehicle. Follow the rules and keep it safe when driving.



In owning a car, every owner should be ready to spent a little more money to get the comfort and benefits of having a car in your garage. Owning a car in Australia incurs costs in many ways and weighing the overall amount should be carefully thought of before deciding buying the car you need. Aside from these factors, driving your vehicle in the right manner will also help in the long run. You will be able to save gas and maintenance services fees. Drive within the limits of your vehicle and it will payoff in time. You will be able to avoid accidents as well that will add to you expenses when it happens even if you are insured.

Always consider the additional expenses of owning a car in Australia. The basic analogy is that if you own an expensive car that means you will have to spend more to maintain it and keep it running on the roads of Australia.

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