How to Reduce the Cost of Owning a Car or Using Public Transport
Whether you own a car or catch public transport, transport is one of the top expenses for Australian households.
When catching public transport, it takes longer, there can be delays and your plans for the day can get thrown out the window if there are any issues.
With a car, you have more control and usually, more time.
Since transport is such a huge topic, I have split this article into car ownership and tips for those who don’t own a car.
Disclosure: This post may contain affiliate links to products and services we use. Check out the full disclosure for more details.
Note: If you like freebies and discounts, check out how to get a $100 cash bonus from ING, $15 from Up Bank or have a look at the full list of freebies, offers and discounts for every state.
How to Save Money With Transport
Living without a car can save thousands every year.
Not paying for fuel every week, no registration or insurance to pay for and no unexpected maintenance or repair costs is fantastic.
There is a lack of freedom though.
Free and Cheap Transport Options
With the rising cost of fuel, free transport is appealing to many, even if it takes a little longer. Here are a few options.
Walking
If you can, then walking is easy and free. Make sure you have good shoes because bad shoes will cause damage to your body over time.
The more you walk, the more your body gets used to it and you can walk further without issues.
Walking is free and a great way to keep healthy physically and mentally.
Bike Riding
Great bike paths, good roads and a culture that has cyclists make it easier.
With a bike, you have the initial cost of buying it as well as some minimal maintenance costs.
The place where we purchased the bikes also offers the first service free.
When it comes to servicing, we like to learn how to do these things ourselves as it saves money.
Public Transport
Free public transport is available in some locations..
Check your location to see what options are available for free transport and plan your errands then if you can.
Otherwise, check out the cheapest options for how often you will use it.
For example, a month pass for someone who uses it every day usually works out much cheaper than paying daily or weekly.
If you have a concession card, you will likely get a discount. Plus, some offer free travel options for those with concession cards or who are carers.
Carpooling
Carpooling or bartering with friends and family where you do something for them and can get a lift or borrow their car is another free or almost free option.
It wears thin pretty quickly though unless you are alternating, so use it sparingly.
How to Make Owning a Car Cheaper
When you include the cost of buying the car, petrol, insurance, maintenance and replacing it later, cars are expensive.
Tips for Buying a Car
One of the most important parts of owning a car and saving money is choosing the right car to begin with.
Buying brand new means you lose thousands as soon as you drive it away but some people like the perceived reliability of a new car.
Perceived because some new cars are absolute duds and have constant issues but they have a warranty.
This doesn’t stop them from being hard to resell later or being a pain constantly needing to be fixed.
Do your research on any car. Check redbook.com.au for the car you want to buy to see how much it should be selling for so you don’t get ripped off.
Google the type of car and ‘issues’ to see what problems you can expect and genuine reviews.
Then for any car you want to look at, check if it has a full service history.
When doing a test drive make notes of any issues, check the tyres, wheel alignments etc. then use any issues to either negotiate lower or choose a different car.
Negotiate and be firm on what price you will pay.
The only cars I had issues with, I bought from car yards.
How to Save on Insurance
Owning a car comes with a long list of extra expenses. First is the insurance.
Get this as soon as you take ownership of the car!
Don’t risk driving around without it.
Be sure to read the fine print and go for agreed value instead of market value.
The difference is that agreed value means a value is selected for the car e.g $10,000 and that is what it is insured for the whole year.
Market value means the value can change depending on the market and you can get totally short-changed by your insurance company with it.
Instead of $10,000, they might place the market value at $7,000 and you lose $3,000!
Factors such as your driving history, age, postcode and who else will be driving all impact the cost of insurance. Be sure to compare prices and play around with the excess to see what the best price for you will be.
How to Save on Registration
Changing registration costs a fee as well as the annual fee and green slip/insurance.
If you have a pension card you might be eligible for a discount on your registration (the registration portion, not the green slip/insurance which is compulsory).
Paying annually is usually cheaper, but if you can’t pay annually you can opt for 3 to 6 months.
Be sure to register on time though because the fine for driving unregistered is not cheap.
Petrol
Prices are skyrocketing and it costs a fair bit to fill your car now, so you want to make sure you can reduce it.
Firstly, keeping your car well maintained, clean and the tyres inflated correctly helps your car use fuel more efficiently.
Remove anything from the car you don’t need so it isn’t weighed down and use the correct fuel for your car.
Check out petrol apps such as the 7/11 one where you can lock in petrol prices when you see them cheaper.
Or FuelMap which shows the cheapest prices in the area. Know which stations are cheaper in your area and plan your trips accordingly.
Do all your errands at once and avoid short, unnecessary trips.
Lastly, top up your tank when it is cheap instead of letting it run down to empty.
Half a tank of cheap fuel still saves you money.
Plus if you always wait until the car is empty, you will be forced to fill up at the next station which might not be the cheapest.
How to Reduce Car Maintenance Costs
Servicing your car is so important. Keeping it maintained and keeping the logbook helps for resale value but servicing helps well before that.
Ensuring your car is running smoothly and you can fix issues as they come up helps prevent major issues later.
The sooner a problem is found and done, the easier it is to fix.
Plus there are some things such as brake pads and timing belts that need changing at certain times and are dangerous if they aren’t.
You can learn to do a service yourself including basic oil changes.
Also, if you do have any issues with your car, Google it first.
Learn about cars, know what you are talking about and you can save yourself thousands.
That said, always get a professional for the big things and especially if you don’t know what you’re doing.
Find a mechanic you can trust (yes, they are out there.)
And check out these tips from a female mechanic in Sydney we’ve dealt with before.
They run courses for women to learn about their cars too!
How to Live Without A Car
Can you live without a car? If so, it could save you thousands.
Depending on where you live and your lifestyle, living without a car is possible.
Get a bike, walk, use public transport, try rideshare options like Uber/Taxify and Ola or try carshare such as Ubercarshare.
Look at your options and decide what is best for you.
How to Make Money With Your Car
If you’ve got a car, you can make money with it but you need to check with your insurer or possibly change insurance.
The first option most people think of is being a driver, but not everyone wants to do that and it’s not the only option.
Uber Carshare
Test them out first if you want to see what it’s like. Then, if you are comfortable with it, list your car.
You choose the price and you don’t have to have it available for others all the time.
Many people who use Uber Carshare make $300 a month and they guarantee $2,000 a year!
Uber, Ola, Shebah, Taxify
You will make less than minimum wage but it’s flexible. On average, drivers I have spoken to said it works out to be $8 to $10hr after all their expenses.
Evenings are busier as are weekends but you need to like people. Shebah is a female-only option if you prefer that.
Deliveries
Instead of driving people around you could deliver food through Ubereats, Menulog and similar.
Both of these options make more than being a driver according to my research and speaking with drivers.
Car Wrap
If you have a relatively modern car, some businesses will pay to have a car wrap on your car promoting their business.
It isn’t as popular as it used to be but it can work if you have the right business and agreement.
Or if you have your own business, put your business on the car.
How do you make and save money with transport?
For more ways to make and save money follow us on social media:
The Thrifty Issue Facebook Page
The Thrifty Issue Facebook Group
The Thrifty Issue Instagram
