Cars are pretty much a necessity for the Irish population, especially for those who live in rural areas. With that in mind, we’ve taken a look at the overall cost of owning a car – not just the purchase price – to help you form a budget before your next purchase. We’ve also included some top tips to help you save on running costs.
How Much Does Owning a Car Cost in Ireland?
According to OUTsurance, it costs €10,373 to run a car every year. This is a huge financial outlay that must be considered when buying a car.
Broken down, you’ll have to spend €864 on your car per month, €199 per week, and €28 per day. This might sound like a lot, and you may be wondering, ‘How can I spend so much on my car?’
When you start to break it down, it’s easy to see how the costs stack up 👇:
- Insurance – insurance will set you back on average €616 a year. This will change though based on the type of car you drive (we’ve covered this further down).
- Depreciation – this is the rate at which your car loses value over time. Most cars will lose around 50-60% of their original value over 3 years, which could mean losses of thousands a year.
- Motor Tax – depending on your engine size and emissions, motor tax rates can fluctuate. For the most popular car in Ireland, the Hyundai Tucson, you would be expected to pay €435 a year.
- Maintenance – this includes anything from servicing to general upkeep and costs €736 on average a year.
- Tolls – toll booths set you back €208 a year on average.
- Parking – this charge will increase or decrease based on your usage but could reach up to €484.
How To Save On Running Costs
We’ve taken each main charge and looked at ways to reduce the cost.
- Insurance: Go for a car in a cheaper insurance band. When looking for a cheap car to insure, focus on groups 1-5. Some cars in this group include the Ford Fiesta, Nissan Micra, Hyundai i10, and Kia Rio.
- Depreciation – to avoid your car losing value, opt for a used car. Used cars have gone through the main stage of depreciation after a few years, so, by the time you own it, the car won’t lose much more value! There are also a few great car brands that tend to hold their value well over time. These are Toyota, Hyundai, Porsche and BMW.
- Motor tax – motor tax is decided by emissions and engine size, so going for something with low emissions can help bring down your costs. Here are a few eco-friendly options that are friendly to your wallet too:
- Toyota Aygo
- Ford Fiesta
- Renault Clio
- Maintenance – with maintenance, try to keep on top of your car. Look out for any issues leading up to a service and if you can fix them attempt to do so. This can help you save on repair fees. For general upkeep, wash your car and clean the inside yourself, saving on car wash fees. On top of this, look for discounts at garages. You never know, you might just save a few euros.
- Tolls – if you rely on a route and can’t deviate, tolls can be hard to avoid. However, you can sign up for the Toll membership in Ireland. Signing up to eToll can see you receive discounted rates on tolls, in return for a sign-up fee.
- Parking: Save on parking with memberships to different parking companies. Q-Park offers a season-ticket-style card, and memberships like the AA can offer discounts at parking sites.
A Final Word
Owning a car is expensive. To many, it’s just the upfront cost that matters, but there’s much more to it. If you are considering purchasing a car, budget properly and see what is actually affordable. Don’t go for something flashy that’s going to leave you short in future, choose something that is affordable.
Another great way to make car ownership more affordable is with car finance. Finance allows you to skip the upfront cost and spread a payment over a set period. This can mean a car listed for over €15,000 might only cost a few hundred euros a month for a few years. Finance can get you driving without hurting your bank like an outright purchase would.
Take a look at our finance options and play with our free calculator to see how finance could look for you. From there, apply for finance with our super simple form and kickstart your car journey today.