How to save $10,000 a year by ditching the car for public transport

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• news.com.au
• 15 Dec 2014
• Lifestyle/Money Saver HQ

The cheapest way to travel ... public transport. Picture: News Corp Australia Source: News Limited

WANT to know how to find an extra $10,000 a year?

Ditch the car and catch public transport.

A city-by-city analysis of commuting costs by the Australasian Railway Association found Melbourne and Sydney workers stand to gain the most from making the switch.

With the annual cost of owning a car averaging $12,600 — according to state-based motoring bodies — in the country’s two biggest capitals and public transport costing around $1850 a year, residents could be pocketing $10,700 or $205 a week.

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Ditching the car ... public transport can save on stress and the hip pocket. Picture: Thinkstock Source: ThinkStock

Brisbane, Adelaide and Perth commuters also faced savings in excess of $10,000 a year for those willing to give up the car for the train, bus or ferry while Hobart and Perth commuters stood to be $8000 to $9000 better off.

Even those not willing to sell the car but still catch public transport, could expect average savings of $1724 a year — rising to $3370 for leaving a 4WD in the garage.

Commuting by car ... the costs are around $12,000 a year in Melbourne and Sydney, and $14,000 in Brisbane. Picture: Thinkstock Source: Supplied

ARA CEO Bryan Nye said the report would provide food for thought for Australians looking to save money and change old habits in 2015.

“A lot of people are unaware of the significant savings that can be made by selling their car or simply not purchasing a second vehicle and switching to public transport,” Mr Nye said.

“A driver of a larger vehicle, like a Holden Commodore, could save more than $12,600 annually, while the driver of a smaller car like a Mazda 2 could save about $6400.”

Alternative ... public transport costs vary from city to city but overall it is cheaper than private car. Picture: News Corp Australia Source: News Corp Australia

He said the calculations were based on “conservative costs” including $1000 a year for parking and only compulsory insurance.

“The potential savings are obviously dependent on individual circumstances but when you consider that Australian CBD parking costs can range from $180 to $750 a month, or $2160 to $9000 a year, the savings that can be made by jumping on a train or bus are significant,” Mr Nye said.

“An added benefit of commuting by public transport is the productive use of time that public transport offers, allowing commuters to spend time on their laptop, mobile, iPod and so on while in transit.”

A 2013 report by the Bureau of Infrastructure, Transport and Regional Economics found urban public transport is used by a mere 11 per cent of the population with little change expected between now and 2030.

Unpopular ... a relatively small proportion of the population uses public transport. Picture: News Corp Australia Source: News Corp Australia

Sydney had the highest rate of public transport use — at 15.1 per cent, followed by Melbourne (11.6 per cent) then Brisbane at 9.8 per cent.

Around 6.8 per cent of Perth residents, 6.4 per cent of Adelaide people, 5.8 per cent of Darwinians and 5.3 per cent of Canberrans chose public transport over private vehicles.

Despite the dismal figures they have improved in the last decade due to rising fuel costs, and improvements to the public transport network.

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