Five ways to cut car ownership costs in the city

If you’re a city driver, you can make serious savings on your car budget by sticking to some simple rules. The good news is that it’s not hard to slash costs to put more money in your wallet.

Always fill up at the cheapest outlet – and on a Wednesday

Apps like Petrol Spy or Fuel Radar can help you suss out where it’s cheapest to top up the tank.  Filling up on a Wednesday may also be the lowest cost choice, according to ACCC data. So how much can you really save and is it worth it? Well, if you pay $1.88 a litre to fill your car with 50 litres of petrol, versus $2 a litre, and you fill your car twice a week, you can save $12 a week or $624 a year, or probably more than the cost of your registration.

Commit to low-cost city parking

If you drive to meetings or leisure activities and don’t plan ahead, your total bill for off-street city parking can quickly edge towards the $80 mark. Pre-planning is key. Check out sites such as Wilson Parking - Sydney or Melbourne - before you start your journey.  For a more permanent solution, try a site like Parkhound.

If you’re a fulltime employee, your company may offer on-site or subsidised parking. Gig or freelance contracts can usually claim costs including car parking and look forward to some end of year tax concessions.

For those with no off-street parking who deal with the daily dilemma of parking near their city home, a residents’ sticker can save thousands in parking fees and angst. Many councils allow you to apply online.

Consider a hybrid vehicle

I literally halved my petrol costs when I bought a hybrid car, even though I drive mostly in the country. City drivers who aren’t using the accelerator heavily for highway driving can potentially save even more. An electric vehicle will also see you racking up the savings, but the higher initial outlay may mean it will take you a while to break even.

Forget loyalty to your insurance company

You may be surprised to know that spending years with your insurance company doesn’t get you the best prices. Make it a habit to review your car insurance annually and reap the savings. Some insurance companies even offer you a comparison tool online, or try services such as www.comparethemarket.com.au or www.iselect.com.au  If you live in the city and don’t drive much, you could also investigate insurance companies that base your rates more on driving habits than make, model and location or “drive less pay less” insurance. 

Move to a “green” apartment block

Thanks to sustainability concerns, new, “greener” apartment blocks like Melbourne’s Alexander Lombard Tower or Sydney’s Pavilions Residences are offering pay per use cars parked on site. With some city councils considering only approving buildings that don’t have lots of carparking, this option may become increasingly common for apartment dwellers and, with rising energy costs, increasingly appealing.