The Australian Securities and Investments Commission (ASIC) has launched a new mobile phone app, MoneySmart Cars, which will, it says, support Australians with the financial decisions associated with buying a car.

ASIC’s MoneySmart Cars app is a free tool to help people understand the real costs of buying and running a car. It will assist consumers with their research, helping them to make informed choices.

The new app gives impartial guidance on:

• the real cost of buying a car, including interest, extras and ongoing costs
• “avoiding common car buying traps, such as being sold extras you don’t need or want”
• finding alternate ways to finance a car, and
• making informed financial decisions prior to purchase.

“With the average car debt per household at about $19,500, buying a car, particularly for young drivers, is an exciting but expensive financial commitment. Our research found that while price is a key consideration, other costs such as loan interest, insurance, servicing and fuel are generally not considered”, said Peter Kell, ASIC Deputy Chairman.

MoneySmart Cars is available on the App Store and Google Play. The app will be promoted online and shared with external stakeholders in the car industry.

ASIC’s promotion of the app will be supported by a series of videos featuring V8 SuperCar driver Craig Lowndes, for use on social media.