The rising cost of living in Australia is forcing most car owners to defer or reduce vehicle maintenance – some even forgo essential repairs altogether.
New research from Canstar shows 57 per cent of Australian households have delayed, reduced or eliminated their car spending in 2025.
Nearly half of the 2,700 car owners surveyed admitted to either postponing or skipping a scheduled car service, while 28 percent have put off buying a brand new model – and 17 percent have scrapped plans to buy a new car entirely.
Worryingly, a quarter of respondents reported neglecting necessary repairs to their vehicle, including safety items such as brake pads and tires.
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Generation Z and Millennials were the worst offenders at 69 and 67 percent respectively, with 60 percent of Generation
Although the baby boomer generation was the demographic with the lowest numbers, the study still found that 42 percent had made similar calls regarding their own vehicle.
Across the country, drivers in Victoria and Western Australia are feeling the cost of living pressures the most, with 60 per cent of respondents in those states admitting they are canceling, reducing or postponing car expenses.
Meanwhile, drivers from Tasmania, New South Wales, South Australia and Queensland recorded 59 per cent, 57 per cent, 56 per cent and 54 per cent respectively.
Those in the Australian Capital Territory were in the minority – but only narrowly – with 49 per cent having to make these financial decisions.
“When it comes to your car, safety must come first, well ahead of saving, so maintenance and servicing must be on the list of non-negotiables,” said Sally Tindall, director of data insights at Canstar.
“Postponing a scheduled service when your car appears to be perfectly fine may seem harmless, but these regular checks can help identify safety problems and potentially avoid much larger and more expensive costs down the road,” she said.
“Regular maintenance can also extend the life of your car and increase its resale value.”
Owners also found other ways to reduce their spending: 17 percent reduced the quality of fuel they put in their car – or simply reduced the amount of driving they did each week.
A total of 21 per cent of Australians suffering from the crisis reduced or canceled their non-compulsory car insurance in the past 12 months, while five per cent sold their own car and did not replace it.
According to the Consumer Price Index (CPI), inflation in Australia rose from 3.4 to 3.8 percent in the 12 months to December 2025.
However, the Australian Automobile Association’s Transport Affordability Index indicates Australian households spend 15.6 per cent of their income on transport costs – an average of $452 per week, an increase of almost $100 in just five years.
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