Owning a car was once a liberating feeling for James Allerton.
But these days, it's something the 33-year-old from Rushcutters Bay in Sydney's inner east is struggling to justify.
One reason is that Mr Allerton no longer drives as much as he used to.
"I'm a five-minute walk from Kings Cross station, I'm walking distance from my supermarket, my gym. And I mostly work from home," he said.
But another is cost.
"My mortgage has gone up about $800 a month compared to about two years ago. Fuel has gone up a lot. So many costs have gone up, I'm now thinking, is it really worthwhile?
"I don't want to cut back on things like health. There's not much room to cut back on groceries and things like that … there's not many changes I can make that will really change things."
Mr Allerton is one of many across New South Wales reconsidering the need to own a car.
Data from the Australian Automobile Association (AAA) shows that across the country transport costs – including registration, insurance, petrol and public transport – rose by about 13 per cent in 2023, or about $2,595.
The average two-car household is now spending $22,608 across all transport costs each year.
NRMA spokesperson Peter Khoury said these figures were alarming, but unsurprising,
He said rising costs of fuels, insurance, and of cars themselves, combined with growing interest rates, had made vehicle ownership expensive.
"If you were buying a car, you're paying more … if you were borrowing money to buy a car, you are borrowing more money, and you're borrowing it at a higher interest rate."
Sydney remains the most expensive place to have a car.
Typical Sydney household transport costs rose in 2023 by $2,334 to $27,945, with increases in a number of areas including insurance, servicing and tyres.
In comparison to places like Melbourne and Brisbane, Sydneysiders are spending a smaller proportion of their income on transport costs, reflecting higher salaries.
Car loan payments make up the largest portion of running a car, representing 36 per cent or $191 per week in Sydney and they are up 22 per cent in a year.
An independent review into Sydney's toll road network found that at the current rate motorists will pay $195 billion in tolls between now and 2060 and drivers are starting to avoid toll roads because of the cost.
In regional communities the story is similar, with transport costs reaching a peak of $20,558 a year, up from $18,080 at the end of 2022.
Tough choices loom large for regional Australians, low income earners
While pivoting to public transport may be a straightforward solution for some, it can be more complicated for others, especially those on low or single incomes.
In Newcastle, 47-year-old Emma Warren struggles to get to doctor appointments on the bus but can no longer afford to run a car on her disability support pension.
Her dad has tried to give her a car but she turned it down.
"I can't take on any repeated financial burdens," she said.
"In one sense it would be liberating and give me freedom, but it would be a real drain and quite stressful having those ongoing payments."
Research completed by the NSW Council of Social Services (NCOSS) last year found 72 per cent of respondents said the cost of petrol, road tolls and public transport were in the top five areas of expenditure.
Chief executive Cara Varian said families were turning to public transport, which was often an impractical and expensive solution in regional communities.
"We saw in our research that there is increased social isolation because of those transport costs, and it's limiting people's ability to leave the house," she said.
"Shockingly, more than a quarter of respondents said they couldn't leave the house for essential services like work, education and even healthcare.
"If you can't get to school, it's a huge problem, especially in regional New South Wales."
According to a NSW government report, buses in regional NSW and Western Sydney "may only operate as frequently as every two hours or less", as well as not operating in evenings or weekends.
Ms Warren said her situation was exacerbated by being in a regional city.
"I can get the train to Sydney and back for $2.50, which is fantastic, but for me to get to a doctors appointment in Newcastle I have to spend $25 on a rideshare," she said.
Her doctor is no longer able to bulk bill, which means an appointment can cost upwards of $50.
"Now I'm looking at $75 and upwards to get to see a doctor."
Public transport delays exacerbate frustration
In Sydney, Gemma Goldhagen decided to give up her car last year after realising she could no longer afford it.
The 32-year-old has been able to cope without a car because she lives near the city, so public transport is largely accessible.
However, a trip to see her sister in North Richmond has changed from a drive of about an hour to a journey of well over an hour and a half on the bus – if the bus turns up.
"Sometimes it is just cancelled and I just have to cop it … you have to rely on external things other than yourself, and that is a real negative," she said.
Ms Goldhagen feels she either had to have a partner or a high-paying job to live comfortably in Sydney.
"[Can] a single person on a single income, can one not afford to realistically rent a place by themselves and still be able to save money for anything?," she said.
"It's frustrating."
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