The Hidden Costs of Car Ownership
How To Avoid Hidden Costs
Owning a car in Australia often seems like a rite of passage or a necessity, especially in cities like Brisbane where public transport might not cover every route.
However, the initial purchase price is just the tip of the iceberg. Many car owners are often surprised by the myriad of ongoing expenses that accumulate, often referred to as the 'hidden costs' of car ownership.
Understanding these costs is crucial to choosing how to finance your next car. Understanding all your options, including car subscriptions, could save you thousands of dollars a year.
Watch Our Explainer Video
Unpacking the True Cost of a Car
Beyond the purchase price and repayments, several significant costs contribute to the overall expense of owning a vehicle in Australia including:
1. Depreciation
This is arguably the largest and most overlooked cost. A new car begins to lose value the moment it's driven off the lot. On average, a new car can depreciate by 15-20% in its first year and usually 50% or more over five years.
2. Registration and Government Fees
Every year, you’ll need to pay for registration, and compulsory third-party (CTP) insurance in most states (like Queensland). These fees vary by state and vehicle type but are a non-negotiable annual expense. Additionally, stamp duty is paid upon purchase, adding to the initial outlay.
3. Insurance
While CTP insurance covers personal injury to others in an accident, comprehensive car insurance is highly recommended to protect against damage to your own vehicle and property and any other cars or property. Premiums can vary significantly based on factors like your age, driving history, vehicle type, and location, often adding hundreds or even thousands of dollars to annual expenses.
4. Maintenance and Servicing
Regular servicing is essential to keep your car running safely and efficiently. These costs include routine checks, oil changes, tyre rotations, and replacement of wear-and-tear parts. Unexpected repairs due to breakdowns or accidents can also lead to substantial, unplanned expenses that could cost thousands and leave you stranded without a car for weeks.
5. Fuel
With fluctuating fuel prices, the cost of petrol or diesel can be a significant ongoing expense, particularly for those with long commutes or less fuel-efficient vehicles. The average Australian household spends a considerable amount on fuel each week. Considering a Hybrid car could slash your fuel costs.
6. Tyres
Tyres are a critical safety component that wear out over time. Replacing a full set of quality tyres can be a substantial expense, typically required every few years depending on driving habits and distance travelled.
7. Roadside Assistance
While not mandatory, many drivers opt for roadside assistance memberships for peace of mind, adding another recurring cost.
8. Cleaning and Detailing
Keeping your car clean, both inside and out, can incur costs, whether through regular car washes or professional detailing.
The Overall
Impact
When all these factors are considered, the true cost of car ownership in Australia can be staggering. Recent data suggests the national average yearly cost of owning a car can be over $23,000, or approximately $440 per week, encompassing everything from depreciation to fuel and maintenance. This figure often far exceeds what many initially budget for.
How Car Subscriptions Offer a Smarter Alternative
For those looking to avoid most of these costs and simplify their vehicle expenses, a car subscription service like ClickMe Cars offers a compelling solution. Here's how it addresses the challenges of traditional car ownership:
Predictable Costs: With a car subscription, you pay a single, all-inclusive weekly fee. This covers registration, damage cover, scheduled maintenance, and roadside assistance. This means no unexpected repair bills, no annual registration shock, and no separate insurance premiums.
No Depreciation Worries: Since you don't own the vehicle, you are not affected by depreciation. You simply use the car for as long as you need it.
Flexibility: Car subscriptions typically offer flexible terms, allowing you to pause or cancel with short notice, or even swap vehicles to suit changing needs, without long-term contracts.
Reduced Upfront Costs: Unlike purchasing a car, which often requires a significant down payment, car subscriptions usually have minimal or no upfront fees.
No Hidden Expenses
By consolidating all major vehicle expenses into one transparent payment, ClickMe Cars provides a hassle-free and often more affordable way to access a car in Brisbane and across Australia, allowing you to enjoy the benefits of driving without the hidden financial burdens of ownership. Because no one likes a bad surprise when it comes to bills.
FAQs
Can I get a car same day?
Yes, all our available cars are ready to go immediately.
Simply apply online or in person to get approved and start driving.
Our fastest approval type is Easy Path.
I have a licence and proof of address - what else do I need?
A driver’s licence and a proof of address are the minimum documents required.
You can provide additional documents to potentially reduce your bond.
Can I return the car within 60 days?
At any time, you can cancel with 1 week's notice.
If you need to cancel in the first 60 days, your access to the car is treated as a rental and rental rates apply.
Rental rates are higher than long term rates.
I can't afford payment this week - do I have to return the car?
Payments are required to be made in advance.
If you cannot make payment by the due date, please contact us.
You may be required to return the car for a short hold until your payments have been caught up.
Can I drive additional km?
Our weekly km allowance is exactly that - an allowance - not a restriction.
When we assess your km, we calculate your usage as an average over the whole time you’ve had the car.
If you drive a lot this week and less next week, provided the average is equal to or less than your allowance, there are no extra charges.
If your average usage suggests that you drive more than your included km per week, you will be required to pay for additional km at the rate set out in your agreement.
We have discounted additional km packages available for super users.
What if the car needs a service?
As a fully managed service, we take care of organising and paying car servicing and other maintenance such as tyres and brakes.
Please contact us to organise a complimentary service at a location close to you.
You will need the car’s current odometer so our team can book the service.
If I have an accident, what do I do?
Firstly, ensure everyone is okay.
If there are any injuries or anyone is in danger, call 000 immediately.
Once everyone is safe, call us to report the accident.
Our 24 hour accident and breakdown line will be able to advise you on what to do next.
While at the scene, ensure you collect the other driver’s information such as driver’s licence number, phone number, email address and home address.
Please also take photos of the accident.
Can I get my own toll account?
We encourage all customers to sign up for their own toll account directly with Linkt.
If you use a toll road without a toll account, we will receive a paper toll notice which we will nominate to you. A toll convenience fee will apply.
How do I apply to leave the 150km zone?
Our cars can be used within our 150km zone.
You must apply to leave the zone 2 weeks in advance.
If approved, you will need to provide your travel dates and pay a refundable travel bond.
Can I pay monthly or fortnightly?
By default, our payments are weekly.
You can request to change your payments to weekly or fortnightly, provided that your payments are made in advance.
Can I use the car for towing?
Yes - depending on the car you subscribe to.
Some cars can be fitted with a tow package, enabling towing capabilities up to the weight limit set by the manufacturer.
Our tow package is are $19/wk, and there may be an additional hardware cost.
Features And
Benefits
Flexible access to a car
You’re never locked in. You can cancel at any time with 1 weeks’ notice.²
You can also swap cars at any time. A car swap fee applies.
Fully managed
We organise and pay for all maintenance including servicing, tyres, and brakes and pay for registration too.
If there are any mechanical faults that aren’t the driver’s fault, we will pay for the repairs.
Always on the Road Guarantee
If the car stops working due to an unforeseeable mechanical issue, we will get it fixed or provide a replacement car in the interim.
No credit check application pathways
We have two application pathways for you to choose.
Easy Path only requires a proof of address and a current driver’s license. With this option, you can be on the road same day.
Documents Path requires a proof of address, a current driver’s license, recent payslips, and bank transactions. This option can lower the refundable bond amount depending on strength of application, but takes 1 day longer than Easy Path.
Things To
Know
Weekly payments in advance
All cars are prepaid.
This means that when you pay your weekly invoice, you are paying for the week ahead.
Refundable bond
The bond is paid upon pick up of a car and is refundable if you cancel your agreement and return the car clean, refuelled, without additional km and without new damage (fair wear and. tear excluded)
60 day minimum
All long term access agreements have a 60 day minimum.
You can cancel your agreement during the 60 day minimum, however, more expensive short term rates apply.²
600km included weekly
All cars come with 600km/wk included.
If you need additional km, packages are available upon request at an additional cost.
No rideshare
Due to our insurance coverage, we unfortunately can not permit our cars to be used for rideshare purposes.
That means no Uber, Didi and similar platforms.
Food delivery is allowed, but please be mindful of your weekly included kms.
Additional drivers
Any additional drivers need to provide their licence and be approved to drive.
A small additional driver fee applies.
Our Reviews
