News Story

Most motorists underestimate how much they spend running their car, according to new research.

The findings, published by the Economic and Social Research Institute (Esri) Behavioural Research Unit, show that many drivers overlook substantial costs when thinking about the financial implications of car ownership.

The study, funded by the Department of Transport, surveyed a nationally representative sample of more than 800 motorists across Ireland.

Participants were asked to give their best estimate of how much they personally spend each year on owning and running their car.

The research shows that after being guided through a detailed breakdown of expenses including fuel or charging, insurance, tax, maintenance, parking, tolls and other costs more than seven in 10 motorists underestimated their annual motoring costs, mostly by a substantial amount.

Excluding the cost of purchasing the car and depreciation, the median estimate was 2,000 euro per year, but actual costs added up to almost 3,000 euro.

In other words, reported costs were almost 50% higher than drivers initially believed. Fuel was the largest single reported expense, with a median annual cost of 1,560 euro.

The research also found large differences in costs between vehicle types. Drivers of electric vehicles reported annual running costs close to half those of drivers of petrol or diesel cars.

The median annual cost for an electric vehicle was 1,560 euro, compared with 2,715 euro for petrol cars and 3,546 euro for diesel cars.

However, the degree of cost underestimation was similar across engine types, indicating that misperceptions are not limited to any particular group of motorists.

The tendency to underestimate was also widespread across age groups and income levels.

Dr Shane Timmons, senior research officer at the Esri and co-author of the study, said: “These findings show that most motorists are not aware of how much their car costs them each year.

“When people think about motoring costs, they focus on the most visible expenses, especially fuel, but overlook other costs that add up over time. Improving awareness of the full cost of car ownership could help people make more informed transport decisions.”