Average hidden costs on a $45k car
+$6,200
Stamp duty, rego, CTP, insurance, dealer fees — before you drive away
Dealer finance premium
+$2,800
Extra interest over 5 years vs a bank loan, on a 2% rate difference
When EV typically breaks even
7–9 years
vs the cheapest petrol/hybrid alternative, at 15,000km/yr AU average
True cost per day (5yr average)
$40–$85
All-in: repayments, fuel, insurance, rego, maintenance, depreciation
Frequently asked questions
EV, hybrid, or petrol — which should I buy in Australia in 2026?
It depends on your km, budget, and access to home charging. For most people driving 12,000–18,000km/yr: a hybrid is the safest 5-year financial choice if you can't charge at home. An EV wins over 10+ years if you drive more and can charge overnight. Petrol is cheapest upfront but most expensive to run. Use the comparison tool with your actual numbers — the answer changes significantly based on your situation.
How much should I put down on a car loan in Australia?
The more you put down, the less interest you pay and the smaller your monthly repayment. A 20% deposit is a useful rule of thumb. Less than 10% and you risk being "upside down" early in the loan — owing more than the car is worth if you need to sell. Check your loan-to-value position in the car loan calculator by adjusting the deposit field.
Should I use a novated lease or car loan?
If your employer offers a novated lease and the car qualifies for the FBT exemption (EVs under ~$89k), it's usually the better deal — you pay from pre-tax income, reducing your taxable salary. For standard cars, the FBT cost often negates the salary packaging benefit. Car loans are simpler and give you outright ownership. Compare the after-tax cost: a novated lease benefit is roughly your marginal tax rate × annual repayments.
What is a good interest rate for a car loan in Australia?
As of 2026, competitive bank car loan rates sit around 6–8% p.a. (comparison rate). Credit unions and online lenders sometimes offer 5.5–7%. Dealer finance typically runs 9–13%. A secured car loan (where the car is the security) is usually cheaper than an unsecured personal loan. Always compare the comparison rate — not just the advertised rate — as it includes fees.
How does car depreciation work?
Most new cars lose 15–20% of their value in the first year, then 10–15% per year thereafter. After 5 years a car is typically worth 35–50% of its purchase price. EVs have historically depreciated faster in Australia as newer models with better range arrive — but this is changing. Buying a 2–3-year-old car lets someone else absorb the steepest depreciation.
Is it worth getting an extended warranty?
Dealers make significant margin on extended warranties and often push them hard at signing. Most new cars come with 5–7 year manufacturer warranties. For EVs, the battery is typically warranted separately (8 years/160,000km is common). Extended warranties can have many exclusions — read the fine print carefully before paying $2,000–4,000. The money is often better kept as a maintenance reserve.