New car trend costing Aussies
A growing car trend in Australia is costing Aussies big time, but a simple switch could save you thousands every year.
Australian drivers are addicted to big SUVs buying more than 450,000 in 2020 according to the Federal Chamber of Automotive Industries (FCAI).
That represents about half of all new cars purchased.
Plus more than 200,000 light commercial vehicles including dual-cab utes were purchased last year, often as a family vehicle.
By comparison Aussies only bought about 220,000 hatches, sedans, wagons and people-movers in 2020 - a drop of about 30 per cent compared to 2019.
SUVs are not only several thousand dollars more expensive than the hatch or sedan they are based on but they will generally cost you more in the long run to maintain and use daily.
New research from comparison website Finder shows some drivers could be spending up to $8000 pre year just to keep their car on the road.
The research analysed the cost of owning a vehicle taking into accounts items including petrol, insurance and rego - and there difference is shocking
Drivers of smaller cars could save more than $4500 a year compared to those using large SUVs.
Many states including NSW and Queensland charge registration costs based on weight, while South Australia and Victoria do not. Registering a V8 Jeep Grand Cherokee in NSW will cost you about double what it does in South Australia according to Finder.
Plus larger vehicles are heavier so will use more fuel, and the higher purchase price will generally mean increased insurance premiums.
You can lower these costs by shopping around according to Finder's personal finance expert, Taylor Blackburn, with some agencies offering some unique ways to lower costs.
"Some companies even let you install a device in your car to track how you're driving - drive safely and you might score yourself a better premium," he said.
Despite the obvious financial benefits of ditching the SUV for a hatch or a sedan sales of big SUVs are expected to grow in 2021.
Finding from surveys conducted by car subscription service Carbar showed that three in ten Aussies are planning on buying a car this year. And only five per cent are considering downsizing their vehicle.
This compares poorly to the 14 per cent which are on the hunt for a bigger vehicle.
Originally published as New car trend costing Aussies