The Cost of Owning a Car in Australia (2026)

The cost is ownership, not the sticker price

The AAA's Transport Affordability Index puts the typical capital-city household at about $24,363 a year just to run its cars, and loan repayments are the largest line, ahead of fuel and insurance. Servicing sits on top: a log book service ($400) is the minimum to keep a new-car warranty intact.

That is the number buyers never see on the window sticker, and it is why a cheap car with dear running costs can be the more expensive choice.

The repairs that write a car off

Most repairs are survivable. The ones that total a car are the driveline: an engine rebuild ($11,300), a gearbox rebuild ($4,250), or on an EV a ev battery replacement ($14,000) that can approach the value of the whole vehicle. Past a certain age, the repair quote is the write-off notice.

Panel, paint and the cost of a prang

Smash repairs are their own economy. A panel beating ($7,800) depends entirely on what is bent behind the panel, and a full car respray ($5,500) to match factory colour is a skilled, slow job. Both routinely clear the insurance excess and then some.

The fees at each end of ownership

Buying and selling carries its own tax. A roadworthy or safety inspection to transfer rego, and for anything brought in from overseas an vehicle import compliance cost ($8,250) before it can be registered at all. They are small against the car, but they are unavoidable.