AUSTRALIA has become the most expensive place to rent a car in the world, with average prices for new cars topping $24,000 a year, according to the latest data.
The national average rental rate for a car from a private company is about $10,000 per year.
In Melbourne, the average car is $25,000, while Perth’s average rental is about 30 per cent higher than the national average.
The latest data from the Australian Bureau of Statistics also revealed that Melbourne’s average car rental rate is the second highest in the country, ahead of Sydney.
In fact, the national median price for a new car was $17,200 in 2017.
The figures are based on data collected by the Bureau of Transport Statistics, which uses a survey to gauge consumer attitudes towards cars.
The bureau used data from a nationally representative survey conducted by the Australian National University.
“The rise in prices is largely due to a number of factors,” the bureau said.
“We have seen a dramatic increase in the cost of renting vehicles in recent years, with the cost per kilometre going up by nearly five per cent over the last five years.
Over the past decade, vehicle costs have risen by more than 25 per cent, and in most cases, this has been driven by the increase in fuel consumption and emissions.”
The bureau says it expects car rental prices to continue to rise in coming years, despite an increase in demand for cars.