How Do Mass People Afford Cars in Australia Where Cars Are More Expensive Than North America, but Wages Are Lower Than the USA?

Myth and Reality of Car Affordability in Australia

Mass people is not a term typically used by Americans, but rather a colloquial term for the general populace. In the context of car affordability, the narrative often perpetuates the myth that Australians, with their lower wages, are at a significant disadvantage compared to their American counterparts, who presumably have higher median salaries. However, the reality is more nuanced.

Comparing Salaries and Car Prices

While it is true that the average mean salaries in the USA are higher, a closer look reveals that median and lower wages in Australia are quite favorable. This is largely due to a zero-rated tax bracket for the first few hundred dollars a week, making lower-income brackets more affordable. However, wages in Australia are indeed lower than in the USA, particularly in the social services field, where salaries are about two-thirds of those in Australia. Professional unions in Australia have also not been as successful in negotiating additional pay for out-of-hours work or setting reasonable limits on it.

Car Prices and Ownership Strategies

Despite higher car prices, Australians often find ways to manage costs through leasing and car loans. Many people opt for leasing a two-year-old car, paying off the loan, and then repeating the process. Others, like myself, prefer to pay cash for a new car, servicing it meticulously and keeping it for up to 20 years, as seen in the example of my son who cycles to work for 10 years.

Public Transport Alternatives

For those in urban and suburban areas, the cost and convenience of public transport play a significant role. In some regions, it is entirely feasible to commute via bus, train, or bicycle. My son, for instance, has cycled to work for 75 minutes each way for the past decade, except under extreme weather conditions. This mode of transport is both eco-friendly and cost-effective. Moreover, my family owns a beach buggy and a family car, which we bought in cash, reflecting a preference for practical, reliable transportation.

The Cost of Ownership in a Vast Land

The cost of car ownership in Australia is indeed influenced by the vastness of the country. Despite the high prices in the second-hand market, the sheer size of Australia requires a reliable vehicle. A car with 50,000 miles or more in Europe might be considered junk, but in Australia, the same car would fetch three times the price, due to the immense land mass and the need for transportation in remote areas.

However, it is worth noting that despite these challenges, Australians value their work-life balance, the quality of public services such as Medicare, and the safety of their parks and beaches. Many Australians, including myself, manage to find a balance between financial prudence and the necessity of proper transportation.