The price of transport in Perth is costing families around $16,652 every year according to the AAA’s (Australian Automobile Association) most recent Transport Affordability Index, with car loan repayments making the biggest dent in household budgets.
The report revealed that Perth household’s are forking over 10% of their earnings each year in transport costs - making them the fourth biggest spenders in the country.
In an interview with Perth Now, Will Golsby, the General Manager of Corporate Affairs at RAC, compared the high figure families were paying out in transport costs to other expenses.
“To put that into context, household expenses for electricity and gas make up around 1 to 3 per cent,” he said.
The report indicated that almost 40% of transport costs for families came from car loan repayments, with a typical family making payments of $123.69 a week (or $6,431 each year).
According to the Mozo database, car loan rates range from as low as 4.47% up to 15.99% which suggests there’s plenty of opportunity for families to save.
“What these numbers show us is that families really could make considerable savings on their weekly car repayments if they’re willing to make the switch from their current lender to a lower rate,” said Mozo Product Data Manager Peter Marshall.
While the cost of transport may be putting a strain on the budgets of many families, the report found that Perth still remains the most affordable city to purchase car insurance. A family with two cars pays just $14.09 each week for car insurance, which is less than half of what a similar family in Melbourne ($30.99) or Sydney ($28.29) forks out.
In fact, the AAA’s report found that when the average income is taken into account, Perth is actually the most affordable city in Australia for transport costs.
That will be of little solace for many commuters though, as figures in the report revealed that Perth is the second most expensive city in the country (after Sydney) when it comes to the cost of public transport, with households paying around $55 each week.
Commuting to work on the train or bus also just got more expensive in Perth after transport fares were hiked on July 1, with estimates suggesting that public transport users can expect an $80 a year increase in fares.
Drivers weren’t spared the pain of July 1 price hikes either after the Western Australian Government increased vehicle licence charges by 5.5% - a move which disappointed Mr Golsby who called for a cap on registration and licence costs.
“Registration in WA has increased every year from $255.32 in 2013-14 to $334.51 in 2016-17, not including compulsory third party or the additional $99 Catastrophic Injury Support Scheme insurance,” he said.
Are you tired of making expensive car loan repayments on your own vehicle? Don’t be afraid to make the switch by heading over to the Mozo car loans comparison hub to compare over 170 offers.