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‘Just didn’t add up’: Could you survive without a car?
By Emily Chantiri
A saving of $4000 in one year was enough to convince Jarrod Purchase that he did not need a car.
After selling his car, Purchase found he could manage his transportation needs by cycling, using his motorbike, public transport, Ubers and the occasional hire car.
Sydneysider Clare Megahey has been without a car since selling hers a few years ago.Credit: Dion Georgopoulos
“The $25,000 I received from selling my car is sitting in my offset account, earning $1500 per annum. The costs of buying a car, plus servicing, parking, registration and insurance just didn’t add up when I had other ways to get around. Also, I’m renting my car space for $50 per week.”
What surprised him the most was how little he needed a car.
“I wanted to see if by not having a car whether I’d be inconvenienced. I live in a highly connected area in Melbourne; it’s cheaper to not have a car. The motorbike is the easiest to get around, although cycling is my favourite mode, and public transport has been quite reliable.”
The only time Purchase feels slightly inconvenienced is when he has a large supermarket shop or weekends away.
Sydneysider Clare Megahey has also been without a car since selling hers a few years ago.
Megahey started exploring second-hand car options when she returned from overseas in 2020. When the lockdowns began, she found she didn’t need the car.
“In 2019, I sold my car when I moved overseas for almost a year. I planned on getting a car when I got back to Australia, but realised I didn’t need one. Since then, I’ve been getting around quite well without one.”
She has been able to walk or catch public transport to most places she regularly frequents.
“I lived close to public transport and across the road from my grocery store, gym and post office, as well as walking distance from a fantastic park and beach. Once the lockdowns lifted, I was going into work more often, but as my office was located in the Sydney CBD, I go to work by bus.”
What’s driving up car values?
The price of new cars has risen as much as 20 per cent since the pandemic, according to GoAuto. The increases are attributed to rising prices of raw materials, labour costs, logistics and in some cases, changes in models, including grades and equipment.
GoAutomedia founder John Mellor said the average price of used cars increased from about $23,000 pre-COVID to more than $40,000.
“This was due to the shortage of new cars coming from assembly plants. Buyers kept their cars for longer and this created a shortage of used cars. Market forces kicked in, and car values increased,” he said.
Mellor added that new cars were arriving again, with various brands already discounting some models.
“As new cars enter the market; the supply of used cars from trade-ins will increase and used car prices should fall off the back of that increased availability. ”
He said the pundits believed the 2025 car market would look more like the pre-COVID market of 2019.
Average costs to run a car
The Australian Automobile Association (AAA) Transport Affordability Index, released in September 2023, found the typical weekly household transport cost in capital cities was $431. In regional households it was $395. Only 5 per cent of this amount was spent on public transport.
The remaining costs of running a car comprised car loans at 43.7 per cent, fuel at 23.6 per cent, and tolls at 11.3 per cent.
Other average car running expenses included car insurance, servicing, tyres and registration fees. Each cost Australians $30-$40 a week.
For Megahey, the money she has saved from not owning a car is going towards future travel.
“I found that I could no longer justify making a big investment on a car. I’d rather save the money or use it to travel. Since selling my car, I’ve always made living near public transport a priority,” she said.
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