www.ariescarrental.com.au

1. Costs of Buying & Maintaining a Car in Australia
Aries Car Rental
166 Adelaide Terrace East Perth 6004
08 9325 4110
info@ariescarrental.com.au
www.ariescarrental.com.au

2. Cars have been perceived as one of the most cost-effective and very useful breakthroughs in technology. As of August 2014, reports show that the new car sales in Australia have reached $91,391, which is about $7,000 less than their highest record. Unlike other island countries, it is relatively compact.
Both locals and tourists can already venture across the Land Down Under on a car. Almost every state is connected by roads, making it easier to travel. Despite the travel and access benefits of a car, some people tend to lessen their usage of their vehicles because of the expenses.
With so many cars running around the country, roads have become more congested. Fuel prices continue to increase, making it less likely for people to spend money maintaining their cars. Surveys show that this technology ranks second to houses as the priciest item they will ever buy.
Why Cars Cost More in Australia
Many people wonder how come cars bought in Australia cost more than the ones in the United States.
The Australian and the American dollar value are quite rated evenly, yet the difference in pricing is almost double or triple. The exchange rate of the Australian dollar to the American dollar is just $0.91.
Experts explain that the US market buys more cars, meaning they receive bigger discount for bulk order. They purchase about 30 million vehicles, while Australians buy just about a million cars. Plus, the taxes and the cost of shipping goods down south is relatively higher.

3. Rough Breakdown of Expenses
Purchasing a car in Australia, whether brand-new or pre-owned, usually costs more than how much the estimate is. Buyers need to pay tons of taxes, including a tax on the purchase price. This comes as a surprise, as sellers would often exclude it on their asking price.
Used cars require sellers to provide buyers with REVS or Register of Encumbered Vehicles, which states their right to deal the vehicle. In cases of unavailability of the REVS, it can be bought for $12. This is to prevent previous financiers from claiming possession of the car if it is not yet fully paid. After buying the car, new owners must register the vehicle. In New South Wales, the current fee for registration transfer is $24. They must also secure a Stamp Duty. In the same state, it costs around $300 to $3100, depending on the value of the car.
Then the Motor Vehicle Tax currently costs $177 for medium cars, while it is $205 for larger ones.
Car insurance is compulsory in Australia as well. In Western Australia, this currently costs about $300 per year. If the car costs more than $57,009, including the Stamp Duty, the buyers are required to pay a Luxury Car Tax. There is no tax involved, however, if it was bought from a private individual.
As of January 2014, the Australian Institute of Petroleum reported a six cents increase in the national average price of unleaded petrol. It is currently priced at 158.1 cents per litre, and still subject to increase within the year. According to the authorities, this is the steepest it has gone since 2004.

4. With these expenses, some locals may just prefer public vehicles or hiring rental cars instead. After all, car rental companies have long been known for maintaining their fleet and providing reasonable prices. If that will be the trend, expect the car rental industry to remain the trusted providers for years to come.
Sources:
http://www.ariescarrental.com.au/
http://www.autoblog.com/2011/02/18/why-cars-can-cost-3x-as-much-in-australia- despite-currency-parit/
http://www.abc.net.au/news/2014-01-07/petrol-price-soars-more-pain-at-the-pump- ahead/5187686
http://www.livingin-australia.com/buying-a-car/