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Buying a car is more than just paying the purchase price. In Australia, car ownership comes with ongoing costs that can easily exceed the value of the vehicle itself over time.

Understanding these expenses helps you plan better, avoid financial stress, and choose the right car for your lifestyle.

This guide explains every major cost you will face during a car’s lifetime — with realistic Australian cost estimates.

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1. Purchase & Setup Costs (Year 0)

Estimated Cost:

• Used car: $8,000 – $25,000
• New car: $25,000 – $60,000+

Additional setup costs:

• Stamp duty: $300 – $3,000
• Registration & plates: $700 – $1,200
• Initial insurance: $800 – $2,000

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2. Fuel Costs (Biggest Ongoing Expense)

Average Australian driver: ~15,000 km per year

• Petrol car: $2,000 – $3,200 per year
• Diesel car: $1,800 – $2,800 per year
• Hybrid: $1,200 – $1,800 per year
• EV charging: $600 – $1,200 per year

10-year fuel cost:
➡ $12,000 – $30,000

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3. Insurance (Annual)

• Comprehensive insurance: $900 – $2,500 per year
• Third-party only: $350 – $600 per year

10-year insurance cost:
➡ $9,000 – $20,000

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4. Servicing & Routine Maintenance

Includes oil changes, filters, brakes, fluids, and inspections.

• Minor service: $250 – $400
• Major service: $450 – $900

Average yearly maintenance:
➡ $800 – $1,500

10-year cost:
➡ $8,000 – $15,000

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5. Tyres (Every 3–5 Years)

• Set of 4 tyres: $700 – $1,800
• Wheel alignment & balancing: $100 – $150

10-year tyre cost:
➡ $2,000 – $4,000

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6. Repairs & Wear-and-Tear (Ages 5–10)

Common repairs include:

• Battery replacement: $200 – $500
• Suspension repairs: $800 – $2,000
• Cooling or electrical issues: $500 – $3,000

Estimated 10-year repair cost:
➡ $5,000 – $12,000

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7. Registration, Roadworthy & Inspections

• Annual registration: $700 – $1,000
• Roadworthy checks (when selling): $150 – $250

10-year total:
➡ $7,000 – $10,000

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8. Parking, Tolls & Daily Extras

• City parking & tolls: $500 – $2,500 per year

10-year cost:
➡ $5,000 – $20,000

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9. Cleaning & Presentation

• Car washes & detailing: $300 – $800 per year

10-year cost:
➡ $3,000 – $8,000

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10. Depreciation (Hidden but Massive Cost)

• New cars lose 40–60% of value in 5 years
• Luxury vehicles depreciate fastest
• Reliable used cars lose value slower

Typical 10-year depreciation:
➡ $10,000 – $35,000

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🔢 Total Estimated Cost of Car Ownership (10 Years)

Expense Type	Estimated Cost
Fuel	$12,000 – $30,000
Insurance	$9,000 – $20,000
Maintenance & Repairs	$13,000 – $27,000
Registration & Fees	$7,000 – $10,000
Tyres	$2,000 – $4,000
Parking & Extras	$5,000 – $20,000
Depreciation	$10,000 – $35,000

👉 Total 10-Year Cost:

$58,000 – $146,000 (excluding purchase price)