Rising car costs in 2023 - time to review your car loan?

The rising costs of living have been biting Aussies this year, with transportation, along with housing costs and groceries being 2023's biggest expenses.

Recent research from the Australian Automobile Association (AAA) shows that transport costs continue to increase for Aussies, with over 15% of household income being spent on this area.

The cost per household has risen a whopping $1,730 a year in the last 12 months.

Transport costs can include all operating costs to get your hot wheels on the road, along with public transport - but what about the basic bread and butter costs car owners face?

Fuel pricing is in focus

Fuel is a necessity to vehicle owners making up 23% of transport costs, but those prices have been eye watering. However, there has been some relief!

The AAA shows that fuel prices have been declining since the end of 2022 by almost $3 a week for Aussie households. The cities doing it toughest with the highest fuel prices are Hobart and Brisbane, with Perth coming in at the lowest prices.

It should be noted that tyre costs are taking grip too.

The weekly costs of serving and tyres have risen $3 a week in the last 12 months for households, with the highest prices being in the cities of Canberra and Perth, says the AAA.

The real rub? Car loan repayments

Car loan repayments are in a league of their own and have been subject to their own interest rate battles.

It’s no surprise that car loan repayments have increased by $35 a week per household in the last 12 months. The current average weekly car loan repayment is $183.30 and makes up 44.4% of a household transportation costs.

These types of costs needn’t dictate your buying experience. There are ways to tackle the problem.

Finding the right car loan for you can be stressful, but having the right resources makes it easier. Making sure you know all the facts can help you reach your financial goals faster. Compare some car loan options below to help find the right one for you!