Co-author of the HILDA study, Roger Wilkins, said the decline in licence take-up at younger ages was a marked drop, which suggests higher costs and entry requirements putting downward pressure on the numbers of drivers.
“I think mostly the decline has been in the major cities where there are transport alternatives,” he said. “Things like Uber have lowered the cost of alternatives to driving your own car,” he said.
According to a finder.com.au analysis, a $25,000 car owned outright will cost $5,396 a year in running costs, fuel and depreciation. That is $104 a week. The same car with a five-year loan costs $11,270 a year or $217 a week, equating to more than $56,000 over five years.
Financial planner and Wealthful founder, Chris Bates, said many young people had to choose between car or home ownership. Bates also suggested buyers struggling to get into the housing market could sell their cars to increase their deposit.
“The cost of having a nice car might be not buying your first home,” he said.
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