Emily Wade considers alternatives to running her car because it’s draining her hip pocket

The cost of owning a car can run into the thousands. But for many of us, having our own transport is essential. Here’s how to get savvy and save cash.

Emily Wade describes her car as a “money pit” that is draining cash from her pocket every week.

The 27-year-old has almost paid off her 2015 Toyota Yaris, which has set her back more than $17,000 plus loan costs, alongside being hit with daily charges to get from A to B.

“I spend $40 per week on petrol, I had to buy new tyres recently which were $500 because I use it so much and there’s then registration and insurance,” she said.

“I’ve thought about getting rid of it because it’s just too much money. Sometimes I don’t go out as much as I would like so I don’t have to spend money on petrol.”

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While cars are a depreciating asset and fall in value every year, many of us cannot go without one.

New independent research commissioned by car-sharing company Popcar surveyed 1000 Australians and found only 65 per cent of people consider the long-term costs of owning a vehicle before they purchase it.

Emily Wade, 27, has owned a car for four years and uses it every day for work but describes it as a “money pit”. Picture: David Swift.

And one in two people spend less than two hours a week in their car but annual costs can quickly run into thousands of dollars a year.

The Australian Securities and Investments Commission’s MoneySmart’s senior executive leader, Laura Higgins, said for many people there were lots of transport options other than using your own car.

“When you look at the day-to-day costs of running a car and ongoing costs it can add up so quickly,” she said.

“You need to look at insurance, repair and maintenance costs, those things people often don’t factor in on top of the registration costs.

“For many people public transport is great, and if you need a car for the weekend to do some running around car sharing are things people should consider.”

PopCar director Anthony Welsh said its service, which had a one-off joining fee starting from $10 and monthly charges of up to $19.90, gave drivers an alternative to hire a car only when it was needed.

“The costs with owning a car keep going up: fuel, registration and insurance, there are always price movements in one direction,” he said.

“There’s so much wastage. For a majority of people the car is something that gets very little usage.

“No-one gets rich by owning a car — we give people an alternative to that. You can still do all the things that comes with owning a car but you don’t have to endure the costs.”

Other popular car-sharing companies include GoGet, Flexicar and Car Next Door.

@sophieelsworth

Originally published as Emily Wade considers alternatives to running her car because it’s draining her hip pocket