Is it time to give up the car?
The costs of running a vehicle may no longer stack up once you're in retirement.
For many older Australians, a car represents independence. It can make shopping, medical appointments, and visits to family easier, particularly in areas with limited public transport.
But if you are on a fixed or limited income, it is worth asking whether that convenience still justifies the expense.
The purchase price is only the beginning. Car owners must budget for registration, compulsory and optional insurance, fuel, servicing, tyres, repairs, and roadside assistance. A financed vehicle also attracts interest, while every car generally loses value over time.
A 2025 analysis by the RACQ illustrates the scale of the commitment. Based on conventional finance over five years and 15,000 kilometres a year, the average total cost of a light passenger car was about $979 a month, or $11,749 annually.
A small car or SUV averaged about $1,039 a month. These estimates include finance, registration, insurance, fuel, servicing and tyres, although actual costs depend on the vehicle and circumstances.
An older, fully paid-off car may cost considerably less. However, insurance and registration remain payable even if it rarely leaves the garage.
Repairs can also become less predictable as a vehicle ages. Before replacing an old car, consider whether the new vehicle’s repayments and depreciation would outweigh any savings in fuel and maintenance.
Anyone buying privately should check the registration and obtain a search from the Personal Property Securities Register. The Australian Government’s Moneysmart service says the $2 search can reveal whether a vehicle has money owing on it or has been reported stolen or written off.
If you are buying a vehicle privately, remember that you are not entitled to the same warranty and consumer protections that are available through a licensed dealer.
For some seniors, public transport combined with occasional taxi or rideshare journeys can be substantially cheaper. The calculation will depend heavily on where you live, the accessibility of local services and how often you travel.
There is no single answer for everyone. A person in regional Australia may have few realistic alternatives to driving, while someone near reliable urban transport could save thousands of dollars by selling the car – especially in places where it is cheap or free for seniors.
Try keeping a travel diary for a month. Record every journey, then estimate what the same trips would cost by public transport, taxi, or rideshare.
Compare that figure with the car’s full annual cost, including registration, insurance, maintenance, and depreciation, not just petrol.
Money matters, but so do safety, mobility, and social connection. The best choice is the one that keeps you financially secure without leaving you isolated or unable to reach essential services.
Disclaimer: This article and any links provided are for general information only and should not be taken as constituting professional advice. National Seniors Australia is not a financial adviser. You should consider seeking independent legal, financial, taxation, or other advice to check how any information provided relates to your unique circumstances.
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National Seniors Australia Ltd ABN 89 050 523 003, AR 282736, is an authorised representative of AWP Australia Pty Ltd, ABN 52 097 227 177, AFSL 245631, trading as Allianz Global Assistance (AGA), and acts as AGA's agent and not as your agent. nib Travel Services (Australia) Pty Ltd (nib), ABN 81 115 932 173, AFSL 308461 acts as third party administrator on behalf of AGA, managing claims, complaints, enquiries and sales. This is general advice only. Before you buy, you should consider whether the product is appropriate for you, the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and Target Market Determination (TMD) is available from us. This insurance is underwritten by Pacific International Insurance Pty Ltd, ABN 83 169 311 193, AFSL 523921.
