Drivers put the brakes on car expenses as cost of living takes its toll
21 Jan 2026
Higher living costs have forced the majority – 57% – of Australian car owners to delay, reduce or cancel car-related expenses in the past year, a trend that could prove costly.
Our survey of 2,705 car owners found cash-strapped drivers had:
- Delayed or skipped a scheduled car service (49%);
- Postponed buying a new car (28%);
- Delayed or skipped repairs for minor damage e.g. cracked windscreen and dents (25%);
- Put off necessary car maintenance e.g. new tyres and brake pads (25%); and
- Reduced or cancelled non-compulsory car insurance (21%).
Which road users pumped the brakes the most on car-related expenses?
Cost of living pressures impacted more drivers proportionately in Victoria and Western Australia, with 60% cutting back on car expenses over the past year – the highest rate across the country.
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| Postponed, reduced or cancelled car expenses due to cost-of-living pressure | ||||||||
|---|---|---|---|---|---|---|---|---|
| AUS | NSW | VIC | QLD | SA | WA | ACT | TAS | |
| Yes | 57% | 57% | 60% | 54% | 56% | 60% | 49% | 59% |
Source: Canstar. National survey of 2,705 Australian car owners. NT data excluded due to low sample size.
Younger drivers tightened their belts more than older generations, with 69% of Gen Z and 67% of Millennials reducing car expenses, compared with 60% of Gen X and just 42% of Baby Boomers.
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| Postponed, reduced or cancelled car expenses due to cost-of-living pressures | ||||
|---|---|---|---|---|
| Gen Z | Millennials | Gen X | Baby Boomers | |
| Yes | 69% | 67% | 60% | 42% |
Source: Canstar. National survey of 2,705 Australian car owners.
Skipping routine maintenance can be costly for many reasons
Canstar data insights director, Sally Tindall, says, “When it comes to your car, safety has to be the number one priority, well above saving money, so servicing and maintenance has to be on the list of non-negotiables.”
“Delaying a scheduled service when your car seems perfectly fine might seem innocuous, but those regular check-ups can help identify safety issues and potentially prevent much bigger, more expensive costs down the track. Regular servicing can also extend the lifespan of your car and boost its resale value.
“Not taking proper care of your car also has the potential to impact your insurance. When you take out comprehensive insurance, the insurer expects you to keep your car in a roadworthy condition. This means replacing worn tyres and brakes, fixing defective lights, addressing rust and resolving any mechanical or electrical issues. If it’s not, then your provider could potentially deny your claim if it contributed to the accident.
“While some things are dangerous to skip, there are safe ways to cut down on costs. Checking your tyre pressure regularly, getting more than one quote for repairs and using a fuel app to get a good deal at the pump can make a difference.
“Shopping around for car insurance every time it comes up for renewal should also be a non-negotiable.
“Auto-renewing saves time, but it could see your loyalty being taken for a ride. Instead, use your renewal notice as your reminder to shop around to get at least two additional new customer quotes.
“Our research shows if someone opted for a Canstar 5-star rated policy, instead of an average-priced one, they could potentially save $692 on their annual comprehensive car insurance. That’s a saving of almost $700 – or around three new tyres – just from shopping around.”
Tips to keep car maintenance costs from spinning out of control
- Pump up (and rotate) your tyres: checking tyre pressure regularly can make sure you’re not wasting fuel by driving around on flat, unsafe tyres and increasing what’s known as the rolling resistance. It’s free at most petrol stations. Additionally, some tyre places offer a six-monthly rotation as part of their service, which is worth taking advantage of.
- Find a regular mechanic: A good mechanic is worth their weight in gold, so spend time asking friends and reading reviews to find one who is thorough but also cost-effective.
- Get at least two quotes for big repairs: For major repairs, get at least two quotes (ideally three) and ask for a breakdown of parts vs labour so you can see where the differences lie.
- Use your car insurance or roadside-assistance perks: Some insurers and motoring memberships offer discounts on servicing, parts, tyres or batteries. Be sure to compare the services to other options to ensure it’s a good offer.
- Use a fuel price app: Prices can vary significantly between petrol stations, in some cases by more than half a dollar per litre. NSW, ACT, WA and NT have government-run apps, while in Queensland, RACQ’s app can help you find a bowser that won’t fleece you blind (well, by not as much).
Survey findings
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| Car-related expenses postponed, reduced or cancelled due to cost-of-living pressures | Total |
|---|---|
| Delayed or skipped a scheduled car service | 49% |
| Postponed buying a new car | 28% |
| Delayed or skipped repairs for minor damage (e.g., cracked windscreen, dents, minor mechanical issues) | 25% |
| Put off necessary car maintenance (e.g., new tyres, brake pads, panel repairs, etc.) | 25% |
| Reduced or cancelled non-compulsory car insurance | 21% |
| Cancelled plans to buy a new car | 17% |
| Reduced the quality of petrol used (e.g., from premium fuel to 95) to cheaper fuel or reduced driving | 17% |
| Reduced budget for a new car purchase | 11% |
| Reduced or cancelled roadside assistance | 11% |
| Sell primary car or additional car and not replaced it | 5% |
Source: Canstar. National survey of 2,705 Australian car owners, of which 57% have postponed, reduced or cancelled car-related expenses due to cost-of-living pressures.
This article was reviewed by our Consumer Editor Meagan Lawrence before it was updated, as part of our fact-checking process.
