Pick the cheapest car to run
While you might think you should go for the cheapest car on the lot, a higher up-front cost will be balanced out by an efficient, money-saving vehicle. For this reason, take the time to investigate the running costs of cars you’re interested in before taking the plunge.
Taking into consideration the standing cost – i.e., price of the car and associated administration – and running costs, the average weekly spend on a car in Australia is $207.842. This is a huge amount of money to be spending each week.
A survey of the average overall cost of different cars revealed that micro cars are, overall, the cheapest to own and that expenses increased with the size of the vehicle. In particular, a new Suzuki Celerio was revealed to have a weekly cost of $100.78, less than half of the average. So, selecting a smaller car can reliably help you save on your vehicle spending.2
Consider your insurance payments
It is always tempting to choose a second-hand car from a financial perspective. Older, used cars will cost you considerably less than a new vehicle in terms of the upfront purchase price, but may actually cost you more in the long run on account of insurance and other maintenance costs associated with age.
In New South Wales, a car older than five years will be required to undergo inspections to ensure its roadworthiness3. Meanwhile, older cars are also at greater risk of suffering from complications, and thus cost more to insure. An old car will cost $165.24 more to insure than a new one in NSW, the greatest difference in any Australian state5.
Find the right finance
A new car will have greater long-term benefits for your finances, provided you choose the right one. Also integral to your vehicle spending is the way you finance your car.
Bank of Heritage Isle offer a highly competitive fixed rate of 7.19% p.a. (7.19% p.a. comparison rate*) for our standard car loans. Because we care about our environment, you can save even more when you buy an eco-friendly car by choosing our Green Loan option, with a rate of 6.49% p.a. 5. (6.49%p.a. comparison rate*) Sustainable vehicles are becoming cheaper to run, with Toyota Camry’s hybrid option costing $7.08 per week less to run when compared to the petrol-only Camry.