RACV report names Victoria’s most affordable new cars

A family buy a car at a dealership.

Research from RACV has this week revealed Victoria’s most affordable new cars - or at least the ones least likely to burn a hole in your pocket.

The Victorian insurance provider’s survey showed that MG’s MG3 light hatchback is the most affordable new car to own in the state. 

First released in 2008, the MG3 hatchback has had regular updates over the past ten years. Now RACV’s research shows that the hatchback costs, on average, around $625.50 to run each month. The average monthly cost for all light cars in Victoria was around $738.43.

The average takes into account the initial purchase price, car loan repayments, registration costs, car insurance, auto club membership, petrol and EV charging costs, tyres and servicing and general repairs. All of these costs were averaged over a five-year time period.

Cost to run new cars in Victoria

Following the small cars trend, the next most affordable cars to own in Victoria were also hatchbacks. RACV found that the average monthly running costs for the Kia Picanto S and the Kia Rio S light hatchbacks were around $662.93 and $705.71 respectively.

After hatchbacks, small cars and small SUVs were the least expensive to run in Victoria, according to RACV. The average monthly cost to run all small cars in Victoria came out at around $903.44, while the average cost to run a small SUV was around $917.60.

The Hyundai Venue and the Kia Cerato S 2.0 were the most affordable small car and small SUV to run in the state. Monthly running costs averaged at around $793.23 for the Hyundai and $802.25 for the Kia.

On the other end of the scale, RACV found that terrain vehicles were the most expensive to run. The average monthly running costs for all terrain vehicles was around $1,634.29. At $1,367.32 per month, the Mitsubishi Pajero Sport GLX 2.4 had the priciest average running costs in Victoria. 

Comparing car insurance in Victoria

Breaking down the average costs, RACV’s head of communications and engagement, Andrew Scannell said the up-front purchase price was most often the biggest cost.

“Registration, insurance and club membership make up about 15% to 20%, while fuel takes a 10% to 15% slice,” Scannell said. He added that servicing costs make up between 3% and 7% and tyres just 3% of overall running costs.

One way to keep car costs down is to shop around for the most competitively priced comprehensive car insurance. Head to Mozo’s compare comprehensive car insurance in Victoria page to see what deals are available right now. Or check out the offers below.

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