How a finance broker may help you move the needle

In 2026, the real test of your car choice is no longer just the monthly repayment – it is what happens every time you pull into the petrol station.

Fuel prices remain elevated compared with just a few years ago, and that is quietly reshaping how Australians choose and finance their cars.

Rising bowser costs, higher interest rates and more expensive living across the board mean ‘thirsty car + expensive loan’ has become a serious cash flow problem for many households and small businesses.

Fuel has become the 'second repayment'

For a lot of people, fuel now feels like a second car repayment they never agreed to.

Even when prices dip slightly, they tend to bounce around at a level that would have seemed outrageous only a few years ago.

Add tolls, rego, insurance and servicing, and the total running cost on some big SUVs and dual cab Utes is eye watering compared with their sticker price.

So the question has shifted.

Instead of just “Can I afford the car?”, more Australians are asking “Can I afford to run it?”

That naturally leads to conversations about fuel economy and about how the finance is structured – term length, balloon payments and whether the current loan still makes sense in today’s fuel environment.

Thirsty cars on expensive loans are under pressure

The people feeling it most are those driving older or heavier petrol and diesel vehicles on high rate loans written in the last few years.

Many of those loans were taken out before households had fully felt the cumulative impact of higher everyday expenses.

Now, add a couple of hundred dollars a month in fuel to a chunky repayment and the numbers become tight very quickly.

This is where negative equity risk creeps in.

If the car is dropping in value faster than the loan balance is falling, and there’s no spare cash to make extra repayments, owners can feel ‘trapped’ in an inefficient vehicle: too expensive to keep running, yet painful to sell or trade.

Why electric vehicles and efficient cars are suddenly a finance conversation

At the same time, interest in electric and hybrid vehicles has surged. High fuel prices have finally pushed many Aussies to at least run the numbers on an EV or more efficient car.

The sticking point is usually the upfront price – the drive away cost can look daunting next to a cheaper used petrol car.

This is where finance becomes a tool rather than a burden.

If a structured loan or lease can turn a higher purchase price into a manageable weekly cost, and the fuel savings are large and predictable enough, the overall cash flow picture can favour the more efficient option.

The key is not just “What’s the rate?”, it’s also about “What does this do to your total cost per kilometre over the next three to five years?”

A man in his work van looking at his next job on his phone.

Small business strategies - from 'new ute' to 'fleet strategy'

For tradies, delivery drivers and small operators with a couple of vans or Utes, diesel prices have turned vehicle choice into a business issue, not just a tax write-off.

A work Ute that used to be a point of pride is now also a rolling fuel bill. Many small businesses are quietly rethinking whether every vehicle needs to be on the road, whether an older, thirsty Ute can be replaced with something more efficient, and what finance structure best supports cash flow and GST.

Those are finance questions as much as vehicle questions.

The right product and term can soften the hit of upgrading to a more efficient vehicle, while the wrong finance choice can lock a business into high running costs for far longer than necessary.

Where a finance broker can actually move the needle

If you are sitting in a thirsty car on an expensive loan, you essentially have three levers:

  • restructure the loan,
  • replace the vehicle with something more efficient, or
  • in some cases, do both – in the right order.

Our role is to run the numbers before you make an emotional decision at the dealership or out of frustration at the bowser.

That means looking at your current interest rate, payout figure, fuel spend and realistic trade in value, then comparing it to scenarios that involve refinancing, downsizing or moving into a more efficient car – whether that is a newer petrol, hybrid or EV.

Stay tuned next week for our follow-up article helping you answer the question ‘Should you keep, refinance or replace your car?’ with greater clarity.

In the meantime, give us a call on 07 3356 6666 if you wish to discuss your options in detail.

Disclaimer: This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. ©2026