Four in Ten Australians Skip Car Services Due to High Living Costs: Research

A Melbourne resident tries to starts his car in Melbourne, Australia, on July 19, 2020. Darrian Traynor/Getty Images

The cost of living crunch has forced Australian households to give up on many necessities, with car maintenance and repairs now making it into the list of slashed common expenses.

According to new research by financial comparison website Finder, over four in ten Australians (45 percent) could not afford to keep their vehicles in good shape.

Specifically, 25 percent of the surveyed respondents had to skip car maintenance services. In comparison, eight percent let scratches or physical damage go unrepaired as they were unable to pay the fees.

Around five percent could not replace bald tyres, while four percent had to put up with damaged windscreens due to financial issues.

However, the impact of rising living costs goes beyond missing maintenance or repair sessions, as 27 percent of the respondents said they would drive less in the next six months.

James Martin, an insurance expert at Finder, said car ownership had become a burden for many Australians.

“It’s becoming increasingly expensive to own a car. And with the cost of living sky-high, something’s got to give,” he said.

“From bald tyres to billowing smoke–Aussie roads are crowded with cars that might struggle to pass a roadworthy inspection.”

Experts Advise Against Skipping Car Services

While the insurance expert said he was aware that a car was one of the most significant expenses after housing for Australian households, Martin advised motorists not to skip their service sessions.

“From registration to insurance to spare parts, it can feel like the car becomes a never-ending money pit,” he said.

“But the cost of letting a car become unroadworthy can be far greater than these upfront payments.”

Echoing the sentiment, RACV (Royal Automobile Club of Victoria) General Manager Automotive Services Jackie Pedersen encouraged people to maintain their cars to the level recommended by their mechanic or dealership.

“Not only will this keep your car running correctly, but it will also ensure that you use less fuel, which saves you money and will help to keep you, your passengers and other road users safe on the roads,” Pedersen told The Epoch Times.

Cars from Victoria enter the southern New South Wales (NSW) border city of Albury, in Victoria, Australia, on July 7, 2020. William West/AFP via Getty Images

The general manager also said that regular maintenance could reduce the risk of major faults or issues that would be more costly to fix and help prevent motorists from being involved in an accident or getting stuck roadside.

“By having your car serviced according to the owner’s manual, you can ensure things like oil and fluid levels are correct, tyres are inflated to the manufacturer’s recommended pressure range, and wheels are appropriately aligned,” Pedersen said.

“Looking after your tyres will not only reduce your fuel consumption, it will extend tyre life and improve handling.”

Inflation Falls in March Quarter

Finder’s data comes as Australia saw a drop in inflation in the March quarter, bringing much-needed relief to Australians struggling with living costs.

According to the Australian Bureau of Statistics, the annual consumer price index rose seven percent in the three months to March, down from 7.8 percent in the previous quarter.

On a quarterly basis, inflation rose by 1.4 percent, down from 1.9 percent in the December quarter.

The main drivers of price growth were new dwelling construction (up 12.7 percent), domestic travel (up 25 percent) and electricity (up 15.5 percent).

Medical and hospital services (up 4.2 percent), tertiary education (up 9.7 percent), gas and other household fuels (up 14.3 percent), and domestic holiday travel and accommodation (up 4.7 percent) were other significant contributors to inflation during the period.

Meanwhile, lower petrol prices and discounts on furniture, appliances and clothes resulted in a decline in goods annual inflation following two years of steady increases, from 9.5 percent to 7.6 percent.

In contrast, services annual inflation experienced the largest annual rise since 2001, growing by 6.1 percent compared to the 5.5 percent increase in the previous year.

The rise was attributed to higher prices for holiday travel, medical services, rents and restaurant meals. While tight vacancy rates pushed rent up by another 1.6 percent in the March quarter, the cost of new home building continued to moderate.