Technology · June 23, 2022

Cost of a car: Australians do without cars

As Aussies feel the pressure on the cost of living, more and more people are making a change that saves thousands a year.

For married Sydneysiders Miguel and Fayme, there was an obvious money saver who could help; park her car.

“In the beginning, my wife and I always used our work cars, so we were still shielded from the cost of four wheels,” Miguel told news.com.au.

“When we left our jobs two years ago, I decided to keep mine – we had it for a year or two, but then we put some numbers together and realized it wasn’t profitable because I don’t really like it that much.” have often used.

“I read a statistic that says cars are parked 80 percent of the time — so I said to my wife, ‘Let’s put our money where our mouths are and give it a try’.”

The couple sold their vehicle, bringing with them a subscription to GoGet – a ridesharing service where customers rent cars for set periods of time, with a tiered membership system that offers users varying levels of accessibility.

Miguel and Fayme started their rental car journey by signing up for the “GoFrequent” tier — which cost $30 a month including fuel.

Many of the couple’s friends and co-workers balked at the idea of ​​not having a car full-time — until the savings started rolling in.

“We were easily saving $10,000 a year – Rego alone used to be $1,000, insurance was another $1,000 – fuel was about $5,000…it was amazing,” said Miguel.

“My brother-in-law gave up his car and my wife’s sister gave up her car as well.

“I think it’s amazing that the used car market has gone up – there’s a huge demand for it and it doesn’t make sense – we haven’t looked back to be honest.”

Miguel and Fayme aren’t the only ones switching to rental cars.

According to data shared by GoGet with news.com.au, the company has seen a 15 per cent increase in usage since the start of the pandemic, with a 57 per cent rise in fuel prices and a 30 per cent rise in the price of used cars, customers move away from the traditional ownership model.

“We’re seeing people carpooling in record numbers,” said Tom Davey, CEO of GoGet.

“Despite the impact of Omicron, the past six months have seen a 15 percent increase in usage and May, normally a quieter month, was another record for new GoGet members, up as much as 30 percent.”

For people looking to enter the housing market, not owning a car could also result in huge savings on asking prices.

“When carshare is installed in a residential building, developers can build and sell homes without unnecessary, expensive and polluting parking,” Mr Davey said.

“Each parking space adds about $50,000 to $100,000 to the cost of an apartment.”

Miguel said he views his GoGet subscription in the same light as other regular monthly transactions like Spotify and streaming service fees.

“Do you buy DVDs, do you buy CDs? Of course not. I see a car the same way – it gets me from A to B and I just pay my subscription fee as usual,” he said.

“You just have to be able to plan well in advance – that’s the most important thing.

“You can’t always get a raise, but you can lower your cost of living.”

Originally posted when Aussies traded their cars for ridesharing subscriptions and the savings are staggering