Sydney families forking out $3,000 extra a year for transport

When it comes to the car costs you associate with hitting your wallet the hardest, the price of petrol and tolls are probably the most likely to come to mind, but new figures from the Australian Automobile Association (AAA) have revealed car loan repayments to be the biggest drain on family budgets.

And if property prices weren’t bad enough, it’s households in the harbour city that were shown to be forking out the most in transport costs each year according to the AAA’s quarterly Transport Affordability Index.

The report showed that Sydney households pay $22,349 on average each year for transport costs - $3,043 more than the second most expensive city Melbourne and $7,348 more than the cheapest capital city Hobart.

Michael Bradley, CEO of the AAA, said that a number of factors were taken into consideration to showcase the amount of financial pressure Aussie households face when it comes to transport costs, including registration, car insurance and tolls.

“The increases we have seen over the quarter are largely attributable to increases in government fees and charges. It really highlights that transport is a significant and unavoidable cost to households and needs to be considered by all levels of government when formulating policies,” he said.

REVEALED: Aussies urged to save on car loans as providers drive rates down

AAA revealed that car loan costs rose across the country in the September quarter thanks to an $400 increase in new car prices, with the average car loan repayment for a Sydney family rising to $123.10 a week, or roughly 30% of the entire average weekly transport budget.

Aside from car loan repayments, the report showed that Sydneysiders are also being hit hard by the amount they fork out each week for tolls (around $80 a week), followed by petrol costs ($62 a week).  

According to the Mozo database, car loan rates range from as low as 5.34% up to 11.49%, which highlights the potential for families to save by switching to a cheaper rate.

Are you looking for a way to trim the fat off your own weekly transport budget? Plug in your current loan details into Mozo’s car loan comparison calculator and see how much you could save.

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Last updated 14 June 2024 Important disclosures and comparison rate warning*
  • Used Car Loan

    Fixed, Secured, No vehicle age limit

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

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    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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  • New Car Loan - Special

    Home Owner Discount, Including Demo, Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.24% p.a.
    7.36% p.a.based on $30,000
    over 5 years

    Low variable car loan rate for purchasing new and demo vehicles from dealers. Personalised loan amounts between $5,000 and $150,000. Flexible repayment options. Choose between the 3 to 7 year loan terms. Good credit history. Stable employment history and Australian citizenship or PR required.

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 6.24% would cost $35,880.27 including fees.

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  • Car Loan

    Up to 7 years old, Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.49% p.a.
    6.84% p.a.based on $30,000
    over 5 years

    Purchase or refinance a new or used car, caravan or motorbike, up to 7 years old. Fixed rate with terms from 1 to 7 years. Make additional payments and free redraw. No early payout penalties. No monthly fees. Quick start application in less than 5 minutes online.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.49% would cost $35,460.64 including fees.

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  • Better Car Loan Special Offer

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.24% p.a.
    6.65% p.a.based on $30,000
    over 5 years

    Get a fixed rate car loan for amounts over $20,000 with Police Credit Union. Make additional repayments at any time without penalty. Free online redraw. Available for new and used cars. Can also be used for motorcycles, boats, caravans, trailers or any registrable vehicle.

    Repayment terms from 1 year to 5 years. Representative example: a 5 year $30,000 loan at 6.24% would cost $35,295.27 including fees.

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  • New Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured new car loan of up to $75,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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