Most people look at the sticker price and the fuel economy. That's about 40% of the real cost. Here's where the other 60% goes, and why the cheapest car to buy is almost never the cheapest car to own.
The Full Cost Breakdown
Every cost of car ownership, ranked by how much it actually hurts your wallet.
| Cost | Small Car | Mid SUV | Ute | EV |
|---|---|---|---|---|
| Depreciation/yr | $3,500 | $5,500 | $4,800 | $6,500 |
| Fuel/Electricity | $1,600 | $2,200 | $2,800 | $700 |
| Insurance | $1,300 | $1,700 | $2,100 | $2,200 |
| Servicing | $400 | $600 | $800 | $350 |
| Registration | $750 | $750 | $800 | $350 |
| Tyres (amortised) | $250 | $350 | $400 | $450 |
| Total per year | $7,800 | $11,100 | $11,700 | $10,550 |
A mid-size SUV costs roughly $213 per week to own. That's including depreciation. Most people only budget for fuel and insurance, which is about $75/week. The other $138 is invisible costs eating your money.
Depreciation: The Cost Nobody Talks About
Your car loses value every single day. On a $50,000 car, you're losing roughly $20-25 per day in depreciation for the first 3 years. That's more than fuel costs for most people.
The best way to minimise it? Buy a car that holds value well (Toyota, Suzuki, Subaru) or buy used and let someone else eat the first-year drop. Our depreciation guide has the full breakdown by brand.
Fuel Costs by Car Type (15,000 km/year)
| Car | L/100km | Cost/yr | Cost/week |
|---|---|---|---|
| Tesla Model 3 (electric) | 14kWh | $630 | $12 |
| Toyota Yaris Cross Hybrid | 3.8L | $1,083 | $21 |
| Toyota Corolla Hybrid | 4.2L | $1,197 | $23 |
| Toyota RAV4 Hybrid | 4.8L | $1,368 | $26 |
| Mazda CX-5 (petrol) | 7.0L | $1,995 | $38 |
| Ford Ranger (diesel) | 7.4L | $2,055 | $40 |
| Toyota LandCruiser 300 | 8.9L | $2,470 | $48 |
The difference between a Yaris Cross Hybrid and a LandCruiser is $1,387 per year in fuel alone. Over 5 years that's nearly $7,000. Buy the car that matches your actual needs, not your ego.
Insurance: The Age Tax
Your age is the single biggest factor in insurance cost. Same car, same postcode:
- 18-24 years old: $2,200-4,000/yr
- 25-29 years old: $1,500-2,500/yr
- 30-49 years old: $1,200-2,000/yr
- 50+ years old: $1,000-1,600/yr
Young drivers pay 2-3x what older drivers pay for the same car. If you're under 25, picking a cheaper, lower-powered car saves a fortune on insurance, not just on the purchase price.
Servicing: Capped vs Uncapped
Toyota, Mazda, Kia, and Hyundai all offer capped-price servicing. You know exactly what each service costs upfront. European brands? Good luck. A BMW or Mercedes service can be $500 for a basic check or $2,500 if something needs replacing.
| Brand | Avg Service Cost/yr | Capped? |
|---|---|---|
| Toyota | $350-450 | Yes |
| Mazda | $400-500 | Yes |
| Kia | $400-500 | Yes |
| Tesla (EV) | $300-400 | No scheduled services |
| BMW | $800-1,800 | No (after warranty) |
| Mercedes | $900-2,000 | No (after warranty) |
The $300/Week Rule
A good rule of thumb: your total car cost (loan payment + fuel + insurance + servicing + rego) shouldn't exceed 15% of your take-home pay. On a $70,000 salary (about $1,100/week take-home), that's roughly $165/week or $715/month for everything.
That budget gets you a $30-35k car with a small deposit on finance, plus running costs. Going above this means you're spending money you could be putting towards a house deposit, investments, or just living.
Compare the true running costs of any car on CarSorted's comparison tool. We calculate fuel, insurance, servicing, and depreciation for every car in our database.
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Disclaimer: All information in this article was believed to be correct at the time of publishing (3 April 2026). Prices are manufacturer recommended retail prices (RRP) and may vary by state, dealer, and options. Specifications, government incentives, and rebates can change without notice. Always verify details with the manufacturer or relevant authority before making a purchase decision. Running cost estimates are based on average Australian driving conditions at 15,000 km/year. All opinions are editorial and independent. CarSorted does not accept payment for recommendations or rankings.
Published by CarSorted Editorial Team · 3 April 2026
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