The True Cost of Car Ownership in 2023: Buying vs. Subscribing

The True Cost of Car Ownership in 2023: Buying vs. Subscribing

Having your own car is fantastic as it offers a great deal of freedom. Though typically, it is more expensive than people realise.

The latest RACV Vehicle Running Costs survey shines a light on the true costs of car ownership. Let’s look at how the RACV report compares to the Drively subscription option.

The Real Cost of Car Ownership

The RACV numbers include fuel, insurance, registration, depreciation, maintenance, and other miscellaneous expenses. Here are some of the cheapest cars in their respective categories:

1. Small Car – MG3: $746 per month

2. Medium Car – Mazda 3: $915 per month

3. Medium SUV – Honda CRV: $1,161 per month

4. Electric Vehicle – MG ZS: $1,172 per month
   

This monthly cost looks alright, but remember, you need to fork out the money upfront to buy the car, pay all the government fees, take all the risk, and then commit to owning the car for 5 years to reach this level. Any changes in those five years and your real monthly cost will likely go up substantially.

Subscribing to a Car: A Different Approach

In recent years, car subscription services such as Drively have emerged as a flexible alternative to traditional ownership. The main benefits here are of course that you don’t have the initial outlay, credit impact or financial risk of buying a car in the traditional way.

For instance, subscribing to a Drively BMW X1 for $219 per week offers a stark contrast to the hefty annual expenses highlighted by RACV:

• Monthly Subscription Cost: $942
  

• Inclusions: Virtually everything including purchase price, depreciation, insurance, registration, maintenance, tyres, and roadside assistance

• Exclusions: Fuel & Tolls

Conclusion

If you want the cheapest possible car ownership, buy a brand new cheap car and run it to the ground. You will need to commit to it for at least five years, fork out the full price upfront (avoiding finance as far as possible) and then at the end of the day – you’re still driving a cheap car. Along the way, you’ll have to deal with servicing the car and repairing it when it breaks. If you’re lucky, this goes alright but you may run into trouble and face hefty repair bills.

In contrast, subscribing to a car from Drively for a modest monthly fee presents a cost-effective, flexible alternative that tend to work better with modern lifestyles where things do tend to change. No upfront outlay, no credit impact, no financial risk and most importantly – no headaches!

At Drively, we’re passionate about offering people a modern alternative to the outdated way most people own their cars. Get in touch today and see if we might have something that suits your needs.