Cars continue to become more affordable

Mozo

Monday 10 September 2012

A lot has been made about the supposedly high cost of vehicle ownership in recent years, but just how expensive is it to keep a car on the road?

Media outlets are sometimes accused of scaremongering and distorting the facts to suggest that the average Aussie driver is being priced out of the market.

In fairness, statistics show that petrol prices have been sky-high recently, with CommSec analysts confirming that rates at the pump hit a four-month high last week.

Although the Australian Associated Press reports that fuel is set to drop by up to two cents a litre in the next fortnight, it is obvious that many motorists are seeing their finances being stretched to the limit at the moment.

Of course, fuel costs are just one factor for drivers to worry about.

Repairs can be expensive and car insurance premiums can often be excessive – particularly for people with a blemished driving licence.

This is why it is so important for Aussies to compare insurance quotes online, as there is every chance that they will find a far cheaper policy somewhere.

Although the situation seems very bleak for the nation's drivers on the face of it, leaders at Allianz Insurance have suggested that the initial cost of buying a vehicle is falling all the time.

Speaking to the News Limited Network, the organisation argued that new car affordability is the best for 35 years.

The firm used the Falcon family sedan as an example – finding that in 1960 it took an average family 60 weeks to save enough cash to pay for the vehicle, whereas it takes half the time nowadays.

Australian Automobile Association spokesman Richard Temperly stated that the strength of the Australian dollar has forced prices down, as car dealerships are able to import new models far more cheaply than in the past.

"While car affordability has been higher in the past, it is currently at a level that has not been seen since 1989," he was quoted as saying.

"If the dollar remains strong – and it has been the dominant factor on prices of new cars – I can't see prices spiking up any time soon," Mr Temperly added.

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Cars continue to become more affordable
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