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Why the real cost of your car isn’t the price tag

When it comes to choosing a car, most of us focus on the obvious question: “How much does it cost to buy?”

But the smarter question, the one that could save you thousands, is this:
“How much will this car cost me to keep on the road?”

Because when you add up repairs, servicing, registration, insurance and the inevitable breakdown or two, the real cost of owning a car goes well beyond the purchase price. And the difference between brands (and choices like ownership vs subscription) is bigger than you might think.

What most people don’t see coming: repair costs over time

A major study by Consumer Reports (2023) found that repair and maintenance costs can easily outpace what people expect especially after the 5-year mark, when warranties run out and older vehicles become more vulnerable to costly repairs. You can find out more about your running costs in this report by The Australian Automobile Association.

Supporting this, data compiled by Clunker Junker revealed that:

  • Luxury brands like Land Rover can cost up to $19,700 (AUD) in maintenance and repairs over 10 years.
  • Porsche owners aren’t far behind, averaging around $18,000 (AUD).
  • In comparison, mainstream brands like Toyota, Hyundai, and Tesla typically cost $5,000–$6,500 over the same period.

This is the part of car ownership that often gets overlooked… until it’s too late.

Why this matters

If you’re like most drivers, your goal isn’t just to own a car. You want:

  • Reliable transport that doesn’t leave you stranded.
  • Predictable costs that won’t blow up your budget.
  • The freedom to drive without the stress of ‘what if something goes wrong?’

The catch? Traditional ownership comes with unpredictable risks. Whether it’s a $3,000 gearbox failure or a $2,500 service on a European model, these are the costs that hurt, especially when they land out of nowhere.

As Laura Harewood, Chief Revenue Officer at Karmo, puts it:

“What we hear time and time again from customers is that it’s not depreciation that causes stress, it’s the fear of that next big repair bill. It’s the unexpected costs, the downtime, the hassle. That’s where subscription takes the weight off.”

How car subscription helps you avoid these hidden costs

This is why car subscription has become such a popular alternative for drivers who want flexibility without the headaches of ownership.

At Karmo, your weekly subscription includes:

  • Registration
  • Servicing and scheduled maintenance
  • Cost of new vehicle
  • Repairs (including unexpected ones)
  • Insurance
  • Roadside assistance

If the car breaks down, needs a service, or requires repairs – it’s not your problem to fix. You stay on the road without the stress or surprise bills.

That means:

  • No large lump sums for repairs.
  • No chasing mechanics or insurance providers.
  • No worrying about what happens when your warranty ends.

Smart choices are about more than sticker price

Sure, the purchase price might look cheaper upfront. But when you consider what happens over the next 5 or 10 years – the services, the repairs, the breakdowns – ownership often costs far more than anticipated.

With subscription, the costs are:

  • Transparent
  • Predictable
  • Flexible to suit your life stage or business needs

At the end of the day, the smartest car decision isn’t just about what you drive today; it’s about what it costs you tomorrow.

Want to drive smarter? Discover how car subscription can work for you

At Karmo, we’re making access to new care more affordable and hassle free. We provide car subscriptions in Adelaide, Brisbane, Perth, Melbourne and Sydney.

Authors

  • Samuel Merigala is a digital marketing specialist with experience spanning SaaS, automotive, and mobility sectors. With a Master of Business from The University of Queensland, Sam specialises in growth marketing strategy, content development, and data-driven campaign execution across Australian markets.

    Connect with Samuel on LinkedIn

  • Laura Harewood brings over 25 years of automotive and fleet management expertise to her role as Group Chief Revenue Officer. With a background spanning operations, procurement, and strategic planning, Laura is passionate about innovative mobility solutions and sustainable fleet management practices.

    Connect with Laura on LinkedIn

The automotive industry is evolving faster than we can imagine, with Australian drivers looking for more convenient ways to access vehicles without the long-term commitment.

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