Australia is the seventh most expensive country to buy and run a car, according to new data from Compare the Market, which ranks 26 different countries for ownership expenses.
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The rankings are based on nine different average annual expense factors, fuel costs at the time of writing and licensing fees.
Australia comes in at seven with a score of 6.67/10.
When comparing annual spending categories between 2023 and 2024, almost all had increased, reflecting the growing cost of living pressure on Australian motorists.
The biggest year-on-year increase in annual average spending for Australia was refueling, which had an AU$211 increase to $2685 a year.
The nation was in the top ten highest average spending countries for a number of categories including insurance ($1182), inspections ($233), maintenance and repairs ($1001) and fuel ($2684).
In 2023, Australia was ranked the 11th most expensive country for car ownership. In one year the nation rose four places in the list of 26 countries.
The top three most expensive countries in 2024 are Norway, Germany and the USA.
Norway replaced Denmark as the most expensive, while the USA replaced Finland in third.
Germany maintained second place.
Meanwhile, the cheapest three countries to own a car are Argentina, Russia and Colombia.
Twenty-two countries had a decrease, while only four saw an increase in average annual maintenance costs. Germany had the fifth biggest decrease, with average car maintenance spending dropping $2132 in one year.
Rising costs in multiple aspects of maintenance and servicing has led owners to skip repairs altogether or spend less due to unaffordability. This has led the average spend drop in most countries.
Compare the Market's executive general manager of general insurance Adrian Taylor said that this could see drivers potentially void their car insurance.
"Car insurance may not cover repairs and replacement to your car if it is deemed to be caused by a mechanical failure from wear and tear or poor maintenance," Mr Taylor said.
"This is because mechanical failure is preventable event and failing to keep your car roadworthy can means that you have not upheld the conditions for cover to be provided. Make sure you check the Product Disclosure Statement and Target Market Determination for details on exclusions and your duties as a car owner."
