Transport costs increase after surge in cost of car loan and toll payments

Melburnians are forking out more for transport than they were last year after being hit with a double-whammy of car and transport payments. This is how much households are spending on road transport every year.

Melburnians are forking out $12.60 more for transport than they were last year after an increase in the cost of car loan and toll payments.

A new report from the Australian Automobile Association reveals households spent an average of $386.84 a week moving around the city in the last quarter of 2018.

The study, known as the Transport Affordability Index, factors in fuel, registration, insurance, public transport fares and other charges to create a picture of how much people are spending.

RACV general manager of public policy Bryce Prosser said rising costs had become a major concern.

“Fuel is essential for many people, so price rises put household budgets under pressure,” he said.

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Fuel costs decreased at the end of 2018 but households paid more for tolls and car loan payments. Picture: David Caird

“In many cases, people living in outer suburbs have fewer choices when it comes to public transport so the only option they have is a car.

“We encourage motorists to top up rather than fill up when petrol prices are high … Regular searches for the cheapest fuel can save motorists hundreds of dollars a year.

The report also revealed some good news for motorists by highlighting a drop in weekly fuel costs compared to the rest of 2018.

Petrol prices plummeted to their lowest point in 12 months in December and stayed low for most of the summer holidays.

The average retail price for fuel was sitting at $1.26 per litre yesterday and is expected to continue falling for the rest of the week.

Families in Geelong are also now paying $298.81 a week in transport but remain the country’s most expensive region for car loan payments.

Finder.com.au’s personal finance expert, Kate Brown, said the family car was now a significant financial burden.

“That’s a huge chunk of a family’s take home pay that is spent on just getting from A to B,” she said.

“If you live in a public transport dead zone, or just really enjoy travelling in the comfort of your own car, there are other ways to reduce the cost.

“Carpooling, public transport, bike riding and walking are all cheaper options to running a motor vehicle, not to mention they are easier on the environment and better for traffic congestion.”