How the rise in car pooling apps can help you cut down on car costs

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on November 25th, 2021       

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Car expenses cost Australians a total of $117 billion a year. If you own a car you already know that there are times where you have to make a tight squeeze either on the car loan repayments or fuel costs to keep you moving. However, over the past few years, Australians have seen driving differently and look for alternative ways to cut down on costs.

How much are we currently forking out on our cars?

With the rise of carpooling services and the fall of the Australian automotive car making industry, a lot of changes are causing how we use and view cars. Research by Roy Morgan revealed that Australians annual transportation equal $117 billion (7%) of the country’s GDP. When this is further broken down, the average household spends $17,146 per annum on transport. People are constantly looking for alternative ways to save on a couple of bucks without compromising their vehicles which has in effect seen the rise of carpooling apps such as Uber which boasts 1 million millennial users in Australia alone.

The rise of the digital car

Aussies are now turning towards the digital sphere to save on car costs. If it is not the use of digital apps that help us catch a ride with friends for a small fee, we buy cars online to find a variety of car deals that align with our frugal budget.

34% of Australians are ready to buy cars entirely online. Most car buyers already access the internet to gather information on the type of car they are interested in. The prospects of the internet providing a straight forward process and cuts out the pressure of a salesperson drizzling a sales pitch down your ear to convince you in parting with a car you are not entirely sure of.

The digital space also provides prospectus buyers with a wider pool of prices to choose from that can beat the initial price they had in mind. However, it is important that you buy a car from a reputable online car seller and be vigilant when it comes to sharing your personal details.

Save on the number one everyday car cost

Fuel is the lifeblood of any countries economy and the thing that gets you from point A to point B. Depending on what type of fuel you ladle into your car you could end up paying an average of $20.64.

If you travel a great deal, then the cost of fuel is most likely to be the main thing that tops your car cost bill. However, 62% of Australians have their sights set on fixing a bigger issue that could destroy the country as we know it.

With the year on year increase of car sales in Australia, and more cars being introduced in Australia we could soon find ourselves facing a huge carbon emission issue which will change our natural habitat and possibly wipe out our coastal areas. Roy Morgan found that 62% of Australians wouldn’t mind paying more for a car that has ‘zero emissions’ compared to 38% who wouldn’t. Green cars might cost you initially, but in the long run, can save you on various costs.

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