RAC survey reveals cars are more expensive to own and run

A new RAC survey has revealed the best value-for-money vehicles on the market, as consumers face increasing costs to own and operate their vehicles in Western Australia.

RAC’s 2019 Vehicle Operating Costs survey assessed more than 140 cars across 14 categories to determine the total weekly costs of owning and running these vehicles in WA.

The results – taking into account the costs of fuel, insurance, servicing, registration, interest on loan repayments, licence fees and vehicle depreciation – reveal it’s getting more expensive, with the average weekly cost now $215.85, an increase of $3.62 a week or nearly $190 a year since 2018.

This year, the Kia Rio S was named the cheapest vehicle overall to own and operate in WA, setting customers back $105.99 per week. While it isn’t the most affordable car to purchase, it’s considerably cheaper to service and insure.

RAC Manager Vehicles and Fuel Alex Forrest said you can save money in the long-run by considering all expenses when purchasing a new car, and not just the drive away price.

“Rising fuel prices are partly to blame for the increase in car running costs across the board this year, but there are other expenses consumers can save on with a little research,” Mr Forrest said. 

“Depreciation is the single biggest expense, making up more than 40 per cent of car ownership costs. But this is often overlooked by customers shopping for a new car.

“Servicing and tyre prices can vary significantly. It’s wise to include these in your annual car maintenance budget, as the combined costs of fuel, servicing and tyres make up 23 per cent of your vehicle running costs.”

For the first time, a hybrid vehicle claimed top spot in the ‘Medium’ car category; the Toyota Camry Ascent Hybrid will cost you $176.43 per week to buy and operate.

“As hybrid vehicles become more affordable, they are becoming increasingly relevant for consumers looking to save money in the long-term,” Mr Forrest said.

“They may still be more expensive to purchase initially, but their petrol-electric hybrid technology can boost fuel economy by as much as 40 per cent, making them considerably cheaper to run.”

This year’s most expensive car to own and operate was the Tesla Model X Electric – coming in at $497.06 per week. In the electric category, the cheapest was the Hyundai Ioniq Electric at $187.38 per week. 

The top three cheapest cars to service and fuel were all electric vehicles.

2019 Vehicle Operating Costs – Category Winners

To see the full survey results, visit the RAC website or see our latest edition of Horizons magazine.