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.
Car Ownership Costs in Ireland (2025 Estimates)
Summary: Owning a car in Ireland typically costs around €10,000 per year, with depreciation being the biggest expense.
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 – average insurance premiums cost €616 in 2024 and are expected to rise in 2025. 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. Depreciation accounts for around 60% value loss in three 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.
- Fuel – fuel prices in Ireland average €1.70 per litre in 2025.
| Cost Type | Estimate (€) | Frequency / Basis | Notes |
|---|---|---|---|
| Depreciation | 6,274 | Annual | Approx. first-year loss on €40,000 car; largest single cost. |
| Insurance | 616 | Annual | Average Irish premium (2024), projected similar/slightly higher in 2025. |
| Fuel | 1,560 | Annual (15,000 km) | Indicative based on petrol/diesel around €1.67–€1.71 per litre (late 2025). |
| Motor Tax | 435 | Annual | Mid-range, emissions-based example (e.g., Hyundai Tucson class). |
| Maintenance & Servicing | 736 | Annual | Routine servicing, tyres, general upkeep. |
| NCT Testing | 60 | Per test | Most cars under 10 years: every 2 years. Annualised ≈ €30. |
| Tolls | 208 | Annual (frequent motorway use) | Example for regular M-road usage. |
| Parking | 484 | Annual (city driver) | Varies by location and usage. |
| Estimated Total (incl. annualised NCT) | 10,343 | Annual | Sum of listed categories (NCT annualised at €30). |
Ways to Save Money on Irish Car Ownership Costs
We’ve taken each main charge and looked at ways to reduce the cost.
Save On 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.
Reduce 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.
Cut Costs On 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
Maintain Your Finances And Your Car
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.
Save On 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.
Park Those Expensive Parking Costs
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.
Fuel and NCT Costs in Ireland
Fuel prices in late 2025 average €1.67 for diesel and €1.71 for petrol. For 15,000km of driving, this adds up to around €1,560 per year. Don’t forget the NCT test, which costs €60 every two years for most cars.
Car Ownership Affordability and Finance Options in Ireland
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.
FAQs
How much does it cost to own a car in Ireland per year?
The average Irish driver spends around €864 per month keeping a car on the road — but with smart insurance shopping and fuel-efficient habits, it’s possible to cut that by 10–15%.
What is the biggest cost of owning a car?
Insurance is the biggest cost of owning a car in Ireland. Car insurance costs €616 a month on average.
How can I save money on running a car in Ireland?
- Choose a car in a low insurance band (bands 1-3).
- Choose a used car that’s already lost value, to avoid massive depreciation.
- Choose a cheaper car for motor tax (low emissions and small engine size).
- Try and fix minor car issues yourself, and look for discounts when your service and MOT come around.
- Sign up to a toll membership, to bring down costs every time you go through a booth.
- If you park in public often, sign up to a parking membership pass.
- Save on fuel costs by car sharing and considering a hybrid car.
What are the cheapest cars to insure in Ireland?
The cheapest cars to insure in Ireland are:
- Ford Fiesta.
- Nissan Micra.
- Hyundai i10.
- Kia Rio.
Is owning a car expensive in Ireland?
It costs €10,373 on average to run a car every year. This makes owning a car quite expensive.
Are cars cheaper in the UK or Ireland?
On average, new cars are cheaper in Ireland (€41,000) than the UK (€44,000). Used cars are cheaper too (€13,600) in Ireland vs the UK (€19,000).
How much does it cost to tax a car in Ireland?
The cost of car tax depends on the car’s engine size and emissions. For the most popular car in Ireland – the Hyundai Tucson – you will pay €435 a year.