Quick answer: The cost of owning a used car in New Zealand depends on the vehicle, how far you drive, its condition and how you pay for it. Budget for fuel or charging, insurance, servicing, tyres, repairs, WoF inspections, vehicle licensing and road user charges where applicable. Add loan repayments to your household budget if you use finance, and consider depreciation when comparing long-term ownership costs.
There is no single annual figure that suits every driver. This guide explains how to build your own budget using vehicle-specific information, current quotes and clear assumptions.
Running Costs, Loan Repayments and Depreciation
These are different parts of the ownership picture:
- Running costs: money spent operating and maintaining the vehicle.
- Loan repayments: payments covering borrowed capital, interest and any financed fees.
- Depreciation: the reduction in the vehicle's value over your ownership period.
For a household cash budget, include running costs, loan repayments and savings towards future bills.
For a long-term ownership comparison, use the purchase price minus expected resale value, plus running costs and finance interest and fees. Do not add the full purchase price, full loan repayments and depreciation together: that would count the same capital cost more than once.
1. Fuel or Charging Costs
Estimate annual distance using your commute, regular errands and longer trips. Then use a realistic consumption figure for the specific vehicle.
Annual fuel cost = annual kilometres ÷ 100 × litres per 100 km × price per litre.
For example, 12,000 km per year at 6 litres per 100 km uses 720 litres. At an assumed $2.80 per litre, that costs $2,016 per year, or about $39 per week. These are illustrative assumptions, not current fuel prices or a prediction for a particular car.
For an EV, calculate electricity costs using your estimated energy consumption and charging prices. Allow for charging losses and the proportion of charging done at home versus public chargers.
Use Rightcar to research vehicle energy information. Standardised figures help with comparison, but your actual consumption will depend on driving conditions and use.
2. Insurance
Get a quote for the actual vehicle before buying. Premiums depend on the insurer, driver, address, vehicle and cover selected.
Compare the excess, exclusions, agreed or market value cover and listed drivers as well as the premium. If paying monthly, check the total annual amount. Ask your lender about any insurance requirements if the car will be financed.
Read our car insurance cost guide.
3. Servicing and Scheduled Maintenance
Ask a workshop for estimates based on the exact model and manufacturer's schedule. Check both time and kilometre intervals, and find out what work is already due.
Budget separately for routine servicing and larger scheduled jobs where applicable, such as cambelt replacement or transmission servicing. Service records help you establish what has been completed.
A general reputation for reliability does not replace checking the condition and history of the individual vehicle.
4. WoF and Vehicle Licensing (Rego)
A warrant of fitness checks specified safety requirements. Budget for inspections at the interval that applies to your vehicle, plus any work needed to pass. Inspection prices vary between providers.
“Rego” commonly means ongoing vehicle licensing. It is different from registration, which adds a vehicle to the Motor Vehicle Register. Check the current licensing charge for your vehicle rather than using a fixed amount from an old article.
See NZTA's vehicle licensing guidance.
5. Road User Charges
Where road user charges apply, include them alongside fuel or electricity. Check the requirements and current rate for the specific vehicle before comparing powertrains.
Do not assume an EV's electricity bill represents its entire driving cost, or treat conventional petrol hybrids and plug-in hybrids as the same category.
Use NZTA's current road user charges guidance for applicable vehicle types, rates and fees.
6. Tyres, Brakes and Repairs
Check tyre sizes and obtain replacement quotes. Consider the condition of brakes and other wear items, and whether the 12V battery may need replacing.
Set aside a repair reserve based on the vehicle's age, condition and likely needs. A reserve is money saved for future work, not a prediction that you will spend that amount every year.
For hybrids and EVs, ask about available traction-battery condition information and specialist repair options. A battery assessment should be understood in terms of what it measures and its limitations.
Vehicle history checks and an independent pre-purchase inspection can help identify issues before purchase, although neither can predict every future fault.
Worked Example: An Annual Running-Cost Budget
Illustrative example only: This budget assumes 12,000 km a year in a petrol car using 6 litres per 100 km, with petrol at $2.80 per litre. All other amounts are invented budgeting allowances, not market averages, advertised prices or quotes.
| Budget Item | Annual Amount |
|---|---|
| Fuel | $2,016 |
| Insurance allowance | $1,000 |
| Routine servicing allowance | $500 |
| WoF and vehicle licensing allowance | $250 |
| Tyres, wear items and repair reserve | $800 |
| Total annual budget | $4,566 |
This example requires about $88 per week before loan repayments. It excludes depreciation, parking, tolls, delivery, major scheduled work and road user charges. Add any items that apply to your situation, and replace every allowance with your own estimate or quote.
If you save towards tyres or repairs, do not count both the savings contribution and the eventual bill as separate costs in an ownership comparison.
7. Depreciation and Finance Costs
Depreciation is the difference between what you pay and what the car is worth when you sell it. Future resale values are uncertain, so compare several possible outcomes.
For example, buying for $18,000 and selling four years later for an assumed $12,000 represents $6,000 of depreciation, averaging $1,500 per year. This is a hypothetical calculation, not a resale forecast.
If borrowing, include interest and fees when comparing ownership costs. For your household budget, include the actual repayments instead. Our car loan repayment calculator can help you explore estimates.
Is a Hybrid or EV Cheaper to Own?
It depends on the specific vehicles and your use. Lower fuel or electricity costs can be offset by differences in purchase price, insurance, road user charges, servicing or depreciation.
Compare your annual distance, driving pattern and charging access. Use the same ownership period and budgeting assumptions for each vehicle.
- Hybrid vs Petrol: Running Cost Comparison
- EV vs Petrol: Ownership Cost Comparison
- Browse Current Hybrid Vehicles
Build Your Own Car Budget
- Estimate annual kilometres and fuel or charging costs.
- Get an insurance quote for the specific vehicle.
- Check service records and upcoming maintenance.
- Allow for WoF, licensing and any applicable RUC.
- Set aside money for wear items and unexpected repairs.
- Add parking, tolls and other costs that apply.
- Include loan repayments in your household budget, or depreciation and finance costs in a long-term comparison.
Compare Used Cars With Dave Allen Motors
Dave Allen Motors at 5 Norris Avenue, Te Rapa, Hamilton, has 700+ Google Reviews. Our team can help you compare available vehicles and discuss their features and available appraisal information.
Start with your budget and driving needs, then compare specific cars. Ask about servicing, tyre condition and any known upcoming work before choosing.
Finance is subject to lender approval and lending criteria. Rates, fees and terms vary.
Frequently Asked Questions
How much does a used car cost to run each year in NZ?
There is no single amount for every driver. Calculate costs using your annual distance, vehicle consumption, insurance quote, maintenance needs and applicable licensing and road charges.
Should I add depreciation to loan repayments?
Do not add depreciation to full loan repayments when calculating ownership costs. For household budgeting, use repayments. For long-term comparisons, use depreciation plus finance interest and fees.
Is rego the same as vehicle registration?
No. Rego commonly refers to ongoing vehicle licensing. Registration is the process of adding a vehicle to the Motor Vehicle Register.
Is a hybrid always cheaper to own?
No. Compare the specific vehicles, purchase prices, running costs and likely resale values using the same distance and ownership period.