Australians neglecting car repairs due to spiralling living costs – study

The increasing cost of living in Australia is forcing a majority of car owners to push back or decrease vehicle maintenance – with some abandoning vital repairs entirely.

A new study from Canstar reveals 57 per cent of Australian households delayed, reduced, or cancelled their car-related expenses in 2025.

Almost half of the 2700 owners surveyed admitted to having either postponed or skipped a schedule car service, while 28 per cent put off buying a brand-new model – and 17 per cent scrapped plans to buy a new car entirely.

Worryingly, a quarter said they were neglecting necessary repairs on their vehicle, including safety items like brake pads and tyres.

CarExpert can save you thousands on a new car. Click here to get a great deal.

Gen Zers and Millennials were the worst offenders, at 69 and 67 per cent respectively, with 60 per cent of Gen Xers saying they had pushed back, reduced, or canned car expenses.

While Baby Boomers were the demographic with the lowest numbers, the study still found that 42 per cent had made similar calls about their own vehicles.

Across the nation, motorists in Victoria and Western Australia are feeling cost-of-living pressures the most, with 60 per cent of those surveyed in those states admitting to cancelling, reducing, or postponing car-related 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 just – with 49 per cent having to make those financial decisions.

“When it comes to your car, safety has to be the number one priority, well above saving money, so servicing and maintenance has to be on the list of non-negotiables,” said Canstar’s director of data insights, Sally Tindall.

“Delaying a scheduled service when your car seems perfectly fine might seem innocuous, but those regular check-ups can help identify safety issues and potentially prevent much bigger, more expensive costs down the track,” she said.

“Regular servicing can also extend the lifespan of your car and boost its resale value.”

Owners also found other ways of reducing their outgoings, with 17 per cent reducing the quality of the fuel they put in their car – or simply cutting back how much they drove each week.

A total of 21 per cent of Australians feeling the pinch reduced or cancelled non-compulsory car insurance in the past 12 months, while five per cent sold a car they owned and did not replace it.

According to the Consumer Price Index (CPI), inflation in Australia rose from 3.4 to 3.8 per cent in the 12 months to December 2025.

However, the Australian Automobile Association's Transport Affordability Index claims Australian households are spending 15.6 per cent of income on transport costs – forking out $452 per week on average, equating to an increase of almost $100 in just five years.

MORE: Australians straining under skyrocketing transport costs