The True Cost of Driving in Western Australia in 2025

Most Perth drivers think about fuel prices every time they visit a servo, but fuel represents only one slice of the total cost of car ownership. When you add up registration, insurance, servicing, tyres, and depreciation, the annual cost of running a typical mid-size car in Western Australia in 2025 is surprisingly large. Understanding the full picture helps you make better decisions about which car to own, how much to drive, and where to focus your cost-cutting efforts.

The annual cost at a glance

The following estimates are for a typical mid-size petrol passenger car (e.g., Toyota Camry, Mazda 6, or Hyundai Sonata) driven approximately 15,000 km per year in the Perth metro area. Values are approximate 2025 figures based on WA-specific costs.

Cost category	Annual estimate (AUD)	Per km
Fuel	$3,240 – $4,050	21.6 – 27 c/km
Registration (incl. CTP)	$900 – $1,300	6 – 8.7 c/km
Comprehensive insurance	$1,000 – $2,200	6.7 – 14.7 c/km
Servicing and maintenance	$600 – $1,200	4 – 8 c/km
Tyres	$400 – $800	2.7 – 5.3 c/km
Depreciation	$2,500 – $6,000	16.7 – 40 c/km
Parking and tolls	$400 – $2,400	Variable
Total (approx.)	$9,040 – $17,950	60 – 120 c/km

The wide range reflects the difference between a modest, older car with basic insurance and a newer vehicle with full comprehensive cover. Most Perth owners of an average family car spend between $11,000 and $14,000 per year to run their vehicle.

Fuel costs

Assuming 15,000 km per year at an average fuel consumption of 9 litres per 100 km (typical for a mid-size petrol car), and an average ULP 91 price of 180 cents per litre in 2025, annual fuel spend comes to approximately $2,430. For a larger SUV consuming 12 L/100 km, that rises to $3,240. Diesel drivers running an economical 6 L/100 km wagon would spend around $1,710 at comparable diesel prices.

Fuel is the most visible running cost because it recurs weekly, but it typically accounts for only 25 to 35% of total driving costs. Strategies for reducing fuel spend include timing fill-ups to the low point of Perth's weekly price cycle, using price comparison tools like EconomicWatch, and smooth driving habits that improve fuel economy.

Registration and licensing

WA vehicle registration fees include the Department of Transport licence plate fee, the Compulsory Third Party (CTP) insurance premium, and in some cases a motor vehicle licence fee. In 2025, typical combined registration costs for a mid-size passenger car in WA are:

• Small car (under 975 kg): approximately $300 to $450 per year all-inclusive
• Mid-size car (975 kg to 1,400 kg): approximately $450 to $700 per year
• Large SUV or ute (over 1,600 kg): approximately $700 to $1,100 per year

CTP insurance in WA is included in registration and covers bodily injury to others in a collision. It does not cover damage to vehicles or property, which is where comprehensive or third-party property insurance is needed.

Insurance

Comprehensive car insurance in WA varies enormously based on the driver's age, suburb, claims history, and the vehicle's value and model. Rough 2025 ranges:

• Driver aged 25+ with clean record, north-of-river suburb, 5-year-old mid-size car: $1,000 to $1,400/year
• Driver aged 18-24: add $600 to $1,200 on top of base rates
• New luxury SUV or European performance car: $1,800 to $3,500/year
• Third-party property only (no cover for your own car): $300 to $600/year

Insurance is the second largest cost after depreciation for most owners. Shopping around each renewal can save $200 to $600 per year. EV insurance is also gradually becoming more competitive as more cars enter the market.

Servicing and maintenance

Regular servicing for a modern Japanese or Korean car runs approximately $150 to $350 per service, typically required every 10,000 to 15,000 km or 12 months. Over a full year, most drivers spend $400 to $900 on scheduled servicing. Adding unexpected repairs (a brake job, battery replacement, or alternator failure) pushes the typical annual maintenance spend to $800 to $1,400.

European vehicles (BMW, Mercedes, VW, Audi) tend to have significantly higher servicing costs due to parts pricing and dealer labour rates. A typical annual service for an out-of-warranty European car in Perth can cost $600 to $1,200 per visit.

Tyres

A set of four tyres for a mid-size sedan costs between $600 and $1,400 in WA, depending on brand and size. With typical tyre life of 40,000 to 60,000 km, the annualised cost is approximately $200 to $500 per year, plus wheel alignment ($80 to $120) and balancing. SUVs and performance vehicles with larger or low-profile tyres face higher tyre costs.

Depreciation

Depreciation is the largest single cost of car ownership, yet it is the most overlooked because it is not a direct cash payment. A new car typically loses 15 to 25% of its value in the first year and roughly 50 to 60% over five years. On a $35,000 purchase:

• Year 1: lose approximately $7,000 to $8,750
• Year 2: lose approximately $3,500 to $5,250
• Years 3-5: lose $3,000 to $5,000 collectively

Buying a two-to-three-year-old used car versus new is the single most effective way to reduce total cost of ownership. The first owner absorbs the steepest depreciation curve and you get the same car for significantly less money.

Parking and tolls

Perth has no road tolls as of 2025, unlike Sydney or Melbourne. However, CBD parking costs are significant: a full business day in a council car park in central Perth costs $20 to $45. Monthly parking permits range from $120 to $350 per month. Daily public parking across inner-ring suburbs costs $4 to $15 per day. Not all Perth drivers pay parking costs (many drive to free suburban carparks) but for those working in or near the CBD, parking adds $1,500 to $8,000 per year to total driving costs.

How to reduce your total driving costs

• Fuel: Use EconomicWatch to buy petrol at the weekly low on Tuesdays. This alone saves $300 to $600 per year.
• Insurance: Compare quotes annually. Bundle home and contents for multi-policy discounts. Increase excess to lower premiums if you have good reserves.
• Depreciation: Buy a 2 to 3 year old car rather than new. Focus on high- reliability brands (Toyota, Mazda, Honda) that hold value better.
• Maintenance: Service on schedule using a reputable independent mechanic rather than a dealer to save 20 to 40% on labour rates.
• Parking: Use free Park & Ride facilities or residential streets on the CBD fringe when commuting into Perth, rather than expensive commercial carparks.
• Drive efficiently: Smooth acceleration and braking, maintaining tyre pressure, and removing roof racks when not in use can improve fuel economy by 5 to 15%.