The average vehicle on Australian roads is older than ever. And yet, new car sales figures continue to break records year after year.
Do Australians prefer to hold onto cars until they conk out? Or are we a nation of new vehicles?
The truth lies somewhere in between. Whether you’re emotionally attached to your old Holden Commodore, eagerly awaiting the latest model EV, or upgrading to make space for a growing family, your driving decisions are personal.
For some people, holding onto an older car makes sense. For others, upgrading to a newer model on a novated lease could be a smart financial move. So, how do you know when it’s the right time to upgrade your car? Let’s look at the telltale signs that could help you decide.
Signs it’s time to upgrade your car
While sentimental attachment is understandable, clinging to a car that’s past its prime could cost you more – and risk your safety. Here are some indicators that it’s time to consider an upgrade.
Repair bills are piling up
Repeated breakdowns. Costly repairs. Constantly worrying that your car won’t start. Paying a premium for imported or hard-to-find parts.
Maintenance costs for older cars tend to snowball. Not only are the repairs themselves expensive, but the downtime, stress and inconvenience are also disruptive.
If your car has spent more time in the mechanic’s workshop than on the road in the last few months, it might be time to put it out to pasture.
Fuel costs too much
We’ve all heard of the mythical car that “runs on the smell of an oily rag”. The truth is that older vehicles tend to be less fuel-efficient than newer models. One study found that efficiency improved 35.4% between 2002 and 2022, and 101.5% between 1975 and 2022.
With petrol prices rising and rising, even a small performance difference could make a significant dent in your budget. Not to mention the drastic decrease in fuel costs that comes with EVs and plug-in hybrids.
Upgrading to a newer car, especially an EV or fuel-efficient model, could add up to big savings over time.
You need better safety features
Vehicle safety technology has come a long way in the last decade. Features like automatic emergency braking, lane departure warnings, reversing cameras and blind-spot monitoring are standard in many newer models but often missing in older cars.
If safety is a priority for you and your family, upgrading your car could provide some much-needed peace of mind.
Your lifestyle is changing
Lifestyle changes will often determine the right time to upgrade your car. Whether it’s a growing family, a longer daily commute, or a new job requiring more travel, your current car simply might not be suitable anymore.
Upgrading to something with more space, safety and comfort can make life a whole lot easier.
Depreciation is hitting hard
Every car loses value over time. We all know that. But a car’s value will drop steeply once it hits a certain age (or odometer reading), leaving you with little to trade in or resell.
The timing varies depending on make, model and condition. The best idea is to monitor the price of cars like yours in the classifieds.
Upgrading before the value plummets can help you get a better resale or trade-in price and transition to a newer car without a major financial gap.
Age is not just a number
The average passenger car in Australia is over 11 years old. Compared to other countries with similar GDP per capita, that’s getting a little long in the tooth.
- UK: 8.9 years
- Austria: 8.7 years
- Belgium: 9.5 years
- Germany: 10.1 years
- Sweden: 10.4 years
All these countries have made concerted efforts to decrease vehicle emissions in recent years. This isn’t about competing. It’s about cleaning up the air.
The bottom line: When is the right time to upgrade your car?
Upgrading at the right time could save you money on repairs, maintenance and fuel costs. It could also provide a safer and more enjoyable driving experience.
That said, some sought-after cars actually appreciate in value once they become vintage. Many Australians also choose to hold onto their cars for kids who are approaching driving age.
Ultimately, there’s no single “right time to upgrade your car”. Everyone’s situation is different.
However, if you’re putting off a much-needed upgrade because you’re worried about the hassle, cost or complexity, then you might consider upgrading your car with a novated lease.
How novated leasing makes upgrading easier
A novated lease is a car financing option that allows employees to lease a vehicle using a portion of their before-tax salary. You (the employee) make an agreement with your employer and a leasing company (like Fleetcare) to finance a new or used car through simple, regular, tax-effective payments.
Simplify all your car payments
Novated leasing bundles your car-related costs – including finance payments, registration, fuel or charging, insurance, servicing and maintenance – into one regular payment each pay. Everything is managed for you, so you don’t have to juggle multiple bills.
Because some of the payments come from your before-tax salary, a novated lease could reduce your taxable income. This could mean more of your paycheck lands in your pocket, unlike traditional car loans, which you pay from after-tax income.
Keep your car reliable
Most Australians choose a new or near-new car on a novated lease.This means you could be driving a more reliable car with fewer maintenance headaches. It reduces the risk of unexpected breakdowns, saving you time and stress.
Ready to upgrade your car? Fleetcare can help.
With a Fleetcare Novated Lease, you could enjoy the benefits of a newer, safer, more environmentally-friendly car while potentially saving money and simplifying your payments.
It’s the smarter way to upgrade your car – no stress, no hassle, just better driving.
Contact Fleetcare today to find out how we could help you drive away in a new vehicle, with everything bundled into one simple package.