Owning a car offers freedom and convenience—but it also comes with a rising price tag. In New Zealand, the cost of running a car has steadily increased over the past few years, making it harder for many households to keep up.
From filling up the tank to routine maintenance and insurance, the average Kiwi driver spends thousands each year just to stay on the road. According to recent estimates(*), the annual cost of car ownership can easily exceed $10,000, especially when you factor in fuel, servicing, tyres, WOFs, insurance, registration, and unexpected repairs. When you add it all up, and it’s no wonder many New Zealanders are feeling the pinch.
Considering the average New Zealand household owns approximately 1.6 vehicles we summarised by household what some of the main ongoing annual costs of owning a car.
| Expense | Estimated Annual Cost (NZD) |
| 1. Fuel | $3,863* |
| 2. Servicing & Repairs | $1,600* |
| 3. Tyres | $307* |
| 4. Insurance | $1,600 (comprehensive)* |
| 5. WOF + Registration | $360* |
| 6. Depreciation | $3,600 - $4,200 (depends on car value)* |
| 7. Other (parking, tolls, etc.) | $500* |
| Total (approx.) | $11,830 – $12,430* |
*These figures are calculated on an average ownership of 1.6 cars per household. They are based on average costs in New Zealand for 2024 and are intended as a general guide only. Actual costs will vary depending on vehicle type, age, usage, location, and individual circumstances.. Sources provided at end of article
Fuel is often the most significant ongoing expense for vehicle owners. In 2024, the average retail prices were approximately $2.69 per litre for regular 91 petrol and $1.83 per litre for diesel. Assuming an average annual distance of 12,000 km per vehicle and fuel consumption rates of 8.5 litres per 100 km for petrol vehicles and 7.5 litres per 100 km for diesel vehicles, the estimated annual fuel costs are:
Petrol Vehicle: 1,020 litres × $2.69 = $2,744
Diesel Vehicle: 900 litres × $1.83 = $1,647
As you can see, fuel costs are a significant expense that can greatly affect the cost of keeping your car on the road. Before purchasing a vehicle, it's wise to consider its fuel efficiency. While a large ute might be appealing, it will likely consume more fuel than a smaller hatchback. Additionally, newer vehicles generally offer better fuel efficiency compared to older models.
To effectively budget for fuel costs, determine how many kilometres the car you plan to buy can travel per litre. Compare this with your expected weekly driving distance to get a clear picture of your fuel budget.
Or alternatively check out our member-only offer with Kora Fuel.
Households who have a Kora account can on average make savings of between $300 & $400 per year on their fuel spend. Play around on their calculator to see how you could benefit.
Regular maintenance is crucial to ensure vehicle longevity and safety. Annual servicing and repair costs can vary based on vehicle age, usage, and condition. For a typical vehicle, owners might spend around $1,000 per year on servicing and repairs.
This includes routine servicing, warrant of fitness checks, and general mechanical repairs. While basic services can start at around $100, full services and common wear-and-tear repairs quickly add up over the course of the year.
There are a few smart ways you can reduce your annual servicing & repair bill. Staying on top of regular maintenance—such as oil changes, tyre rotations, and fluid checks— they can prevent costly breakdowns later on. And if you're mechanically inclined, learning to handle basic maintenance jobs yourself—like replacing air filters or spark plugs—can significantly lower your annual outlay.
Alternatively if you are needing a service or a check up then consider using our Midas Member-only offer.
Tyres require periodic replacement, typically every 40,000 to 50,000 km, depending on driving habits and road conditions. The cost of tyres varies based on size and brand.
For standard vehicles, individual tyres can range from $75 to $200, excluding fitting costs, which may add an additional $25 to $40 per tyre.
Assuming a mid-range tyre at $150 and replacement of all four tyres every 50,000 km, the annual cost would be approximately $192 per vehicle, this equates to about $307 per year per household.
Even though you don't need to buy new tyres every year, they can be an emergency expense that you weren't expecting so it is wise to budget for them every year and put away some money in your car fund to cover when you do have a puncture or need new tyres after a WOF.
Remember, when you need to look after your tyres or buy new ones we have a member-only offer from Advantage that may help with the cost.
Vehicle insurance premiums are influenced by factors such as driver age, driving history, vehicle type, and coverage level. In 2024, the average annual cost for car insurance was approximately $1,000 per vehicle.
However that price can vary based on what type of insurance you want to have because generally the broader the cover, the more expensive it will be. There are three common levels of car insurance in New Zealand:
Third Party: Only covers damage you cause to someone else’s car or property.
Third Party Fire & Theft: Third party protection but also covers you if your vehicle is stolen or damaged in a fire.
If you've bought a new car or checking to see if you have the best cover? Then have a look at our Partner Tower. If you take advantage of our Member-only offer for house & contents insurance you can add their car insurance too to your bundle and get their multi-policy discount on the car insurance. Read this article here to find out how you can save on your insurance costs too.
To legally operate a vehicle in New Zealand, it must have a current WoF and be registered. The cost of a WoF inspection typically ranges between $70 and $95. Vehicle registration fees depend on the vehicle type and fuel. For a standard petrol-powered private passenger vehicle, the annual registration fee is $135.84. Therefore, the combined annual cost for WoF and registration per vehicle is approximately $225.
Depreciation represents the reduction in a vehicle's value over time and is a significant cost of ownership. New cars can lose up to 30% of their value in the first year and approximately 15-20% annually thereafter. For instance, a new car purchased for $30,000 might depreciate by $9,000 in the first year and by $4,500 to $6,000 in subsequent years. Over a five-year period, this could amount to a total depreciation of around $18,000 to $21,000, averaging $3,600 to $4,200 per year.
Additional costs such as parking fees and tolls can accumulate, especially for urban drivers. While these expenses vary widely based on location and driving habits, they can add an estimated $500 annually to the cost of car ownership.
But remember that a car doesn’t always adhere to a yearly schedule. Even with regular servicing and maintenance, and a recent WoF, a car can still pack it in and need repairs unexpectedly. It’s impossible to accurately budget for this. But, as part of owning a car, putting a little aside each pay as an emergency safety net is a good idea
And when every dollar counts, small savings on everyday car expenses can add up to a big difference. Whether you’re a regular commuter, a weekend road-tripper, as a HealthCarePlus Member we can help you drive your costs down.
(*) Sources:
Commerce Commission Quarterly Fuel reports
What is Impacting Vehicle Prices and Running Costs in New Zealand?
How Often Should You Service Your Car?
Money Hub Guide The Real cost of owning a Car in New Zealand