Fuel prices in Australia are getting out of control, with prices in Sydney pushing towards (and sometimes over) $2 per litre.
Right now in Sydney, you’ll pay $1.839 per litre for E10 unleaded at Coles Express Woolloomooloo, while BP Edgecliff has Premium unleaded (P98) for a whopping $2.12 per litre… owch!
In Carbar’s second Future Finance and Mobility Report., we learn that petrol is costing the average family almost $2,000 per year. The annual study surveys a stratified sample of over 1,049 Australians over the age of 21 on auto and finance trends.
With prices these high, many will be considering the ongoing costs of their vehicle and as we’ve seen in the past, are likely to want to exit the big thirsty V8s and move to something more economical. There’s never been a better time to move to an electric vehicle, which allows you to remove your exposure to fluctuating fuel prices, instead of moving too much cheaper charging at fixed costs.
Whether your charging at home on your own power plan, or charging off solar (even better), you’ll experience significantly lower ongoing costs. Generally charging Electric Vehicles will cost around 1/3rd the cost of refuelling, but with these increased fuel prices, that gap widens.
“Clearly, rising petrol prices are encouraging more Australians to look into EVs. But with many EVs still costing Australians over $40,000 to own, this is some hesitancy. More affordable alternatives, like subscription products, are filling this gap. But we will start to see real momentum as EV prices start to fall and we grow further awareness in subscription as an alternative.
“We were also surprised to learn just how aware many Australians were about the cost of car depreciation, which ranked second to petrol in terms of the major cost of owning a car. You can lose thousands per year on deprecation, and it is one of the main reasons why we believe subscription is an affordable alternative to ownership, as it negates this loss.
“If our latest study is any indication, Australia’s auto sector is about to get significantly more crowded. Australians are happy to bundle subscriptions with other services. There’s also interest for Environmental NFPs to get involved in the sector. Mobility is becoming a service that anyone can offer. The energy sector has been an early mover in this regard, with several offering their own subscription products, but it will be interesting to see who is next.”carbar CEO and co-founder Des Hang
Some of the study’s key findings of the report include:
Cost of running a car
- Australians estimate they spend (or lose) up to $8926 annually on their car.
- The top costs include petrol ($1,991), depreciation on the value of the car ($1,758), car maintenance ($1,024), car insurance ($970), and registration ($925).
- These are followed by repairs ($846), car repayments ($781), parking ($329) and speeding, parking, and other driving infringements ($302).
- Nearly seven in ten (68%) car owners aged 21+ agree that the increase in the price of petrol in 2021 has put a lot of strain on their budget, with 36% strongly agreeing.
Intention to adopt an EV
- A third (33%), the equivalent of 5.9 million of these Australians, are likely to consider an electric vehicle in the next 2 years, with 12% (almost 2.2 million Australians) saying they are very likely to consider one.
- One in three (34%), the equivalent of 6.5 million Australians aged 21+, agree that the price of petrol and recent increases have made them more likely to consider buying an electric vehicle in the next 2 years.
- Seven in ten (71%), the equivalent of 4.2 million Australians, would consider taking out a subscription to an electric vehicle.
Accessing a car in 2022
- More than one in four (27%) Australians aged 21+ plan to buy a car in 2022, including 14% who plan to buy a new one and 15% who plan to buy a second hand one. Of those, 2% intend to buy both.
- However, one in four (24%), expect it to be somewhat or very difficult for them to access a car going into 2022, citing issues around affordability (66%), reliability of second-hand cars (28%), long wait times for delivery of new vehicles (21%) and not trusting car dealers (15%).
- The most preferred vehicle type for 2022 is a family car (e.g: SUV) (now 27% compared to 28% in 2021) and an economical car (e.g: low fuel costs to run) (now 22% compared to 26% in 2021), followed by an electric car (now 19% compared to 15% in 2021).
Growth and evolution of car subscription
- Almost half (48%) say they would consider a subscription with an electric vehicle organisation that is not a typical auto industry participant. This includes environmental not for profit organisations (26%) or energy retailers (25%) and telecommunications/internet providers (12%).
- While others would prefer a traditional manufacturer, including four in five (39%) who would consider an automotive manufacturer, one in five (22%) who would consider an online automotive retailer, and one in five (21%) who would consider Carsales (online marketplace).
Carbar is a mobility service that allows you to subscribe to vehicles, which can help solve the higher up-front cost of EVs. Starting from $139 per week, carbar’s car subscription is a different approach to vehicle usage, with the single fee replacing the cost of owning, maintaining and running a car such as depreciation, interest, registration, insurance, routine maintenance, roadside assist, mechanic faults, faulty and worn tyres and batteries.
The service now offers a decent range of electric vehicles, including the Nissan Leaf ($279pw), MG ZS EV ($296pw), Tesla Model 3 ($399pw), the Hyundai Kona EV ($387pw), the Kia Niro ($468pw) and Mini Hatch ($498 pw) to name a few.
If you’re on the fence and want to try an EV before committing to a purchase, this is also a great option to experience an EV at your home, before ordering online.
More at Carbar.