Australians have a love affair with cars, with over 6.5 million people commuting to work by car and only 377,043 travelling by bus, according to the Australian Bureau of Statistics (ABS). But is it cheaper to run a car than to take the bus? This article will look at arguments for and against both options from studies and industry experts.

59% of Australians think it’s cheaper to drive

According to a study by Canstar Blue, 59% of Australians say it’s cheaper to drive than to catch public transport, while 53% say that they would use their car less if public transport was cheaper. This is particularly the case in Queensland, where 74% of respondents feel that it’s cheaper to drive than to use TransLink services. However, only 49% of those living in NSW agree with this.

In Melbourne, the Public Transport Users Association (PTUA) said that over the last 10 years, fare increases above inflation has made public transport cost significantly more than it would to refuel a car for many trips. For a weekly full fare myki pass, it costs $60.60 if you travel between Zone 1 and 2, which translates to $12.12 per weekday. If petrol is $1.30 a litre and you would use 2-3 litres per day to get to and from work, then the cost of driving will be cheaper.

According to the Northern Territory Government’s Department of Transport, if you compare the long-term costs of running a car with the cost of taking a bus, it would be expensive if you:

• Had more than 1-2 cars
• Had a large car
• Used the car a lot
• Drove in a non-fuel efficient way  (see here for some fuel-efficient driving tips)
• Drove in your own car every day (consider carpooling).

The cost of owning a car

However, there are more costs involved with having a car than just the petrol you use in your trip. Ticket prices may be more expensive than the costs of filling up your car with fuel every week, but cars come with other running costs, such as:

• Repaying its loan
• Cleaning the car
• Paying for new tyres
• Servicing or repairing the car.

Even if you’re driving a cheap, small car such as a Hyundai i30 that costs approximately 16.6 cents per kilometre, the addition of parking, maintenance and tyres would greatly increase the price you pay to get to work. You’d also have to add to that standing costs associated with owning a car. A Hyundai i30’s yearly standing cost is around $5,668, which is primarily made up of registration, insurance, interest and depreciation. If commuting takes up half of your yearly travel by car, then your standing costs to get to work would be $2,834 – not even including parking, fuel, tyres and servicing – while buying a Myki Yearly pass in Melbourne would only set you back $2,210.

A study commissioned by the Australian Railway Association (ARA) found that commuting to work by bus is cheaper than driving to work. The report, titled Commuter costs and potential savings: Public transport versus car commuting in Australia, compared commuting costs between public transport and cars in all of the Australian capital cities and found that driving was more expensive than taking public transport.

In Brisbane, people could save thousands of dollars a year if they took public transport instead of driving a car. The report found that Brisbane-siders who owned and drove a car to and from their place of work 5 days a week paid around $11,892 a year.

The study looked at three different scenarios in which people:

• Drive to work 5 days a week
• Own a car but catch public transport to work
• Choose not to own a car.

It pointed out that those who drive a small car to and from work would have to pay about $10,698 a year if they travelled a distance of 15km back and forth. If they catch public transport, they could save just over half that amount (52%), which is $5,543 a year. If they didn’t have a car at all, they could save $8,328 a year, which is a massive saving of 78%.

It added that people who live in the outer suburbs of a capital city paid more for car travel, but they could also save more money than those who live in inner-city areas by taking public transport.

Of course, how much you can save also depends on the type of car you own and drive. Large cars have higher running costs, therefore people who drive large cars can save even more than those who drive light and small cars by switching to public transport.

The full cost breakdown for different types of cars is:

• A light car valued at $15,900 will cost around $144 a week to run, which is $7,084 a year.
• A small car worth $26,753 will cost $178 per week to run, which is $9,280 per year.
• A large car valued at $36,529 will cost $233 a week to run, which is $12,165 a year.

These results were based on several assumptions and factors, including:

• Drivers paying for their own parking at commercial car parks
• Car depreciation
• Compulsory third party insurance
• Car registration
• Car maintenance
• 231 working days
• Regular unleaded petrol cost of 145.7 cents a litre
• Roadside assistance.

Overall, despite the perception that driving may actually be cheaper, it’s safe to say that taking the bus is the more cost effective solution. Still, most Australians prefer to drive, and only 11% mainly use the bus to get to their desired destination.