Most New Zealanders think of car ownership in terms of the purchase price. The real number — the one that matters — is what the car costs you every year to keep on the road. For many households, it’s their second-biggest expense after housing.
A cheap used car ($8k purchase) typically costs $5,000–6,500/year all-in. A mid-range car ($18k) costs $7,000–9,000/year. A newer car ($35k) costs $10,000–14,000/year. At September 2026 petrol prices, fuel is the biggest single running cost for most drivers, followed by depreciation and insurance. Most New Zealanders underestimate what their car costs to run.
Every Cost You Need to Count
1. Depreciation
Depreciation is the largest single cost for most car owners — but it’s invisible because you don’t write a cheque for it. It’s the value your car loses each year.
| Car age | Typical depreciation rate |
|---|---|
| New car, Year 1 | 15–20% of purchase price |
| Years 2–3 | 10–15% per year |
| Years 4–7 | 8–12% per year |
| 8+ years | 5–8% per year (slows on older cars) |
A $35,000 new car loses roughly $5,500–7,000 in Year 1 alone.
2. Insurance
| Coverage type | Typical annual cost |
|---|---|
| Third party only | $300–450 |
| Third party, fire & theft | $400–600 |
| Comprehensive (older/cheaper car) | $600–900 |
| Comprehensive (newer/more valuable car) | $900–1,800 |
Providers: AA Insurance, AMI, State, Tower, Trade Me Insurance. Get at least 3 quotes — rates vary significantly. Young drivers (under 25) pay a premium.
3. Warrant of Fitness (WoF)
WoF inspections are required every 12 months for vehicles less than 6 years old, and every 6 months for older vehicles (pre-2000 models).
- WoF inspection: ~$55–70 (varies by provider)
- Repairs to pass: Budget an additional $100–500/year for minor repairs (tyres, brakes, lights, windscreen chips)
4. Registration
Vehicle registration is renewed annually through NZTA.
- Registration (12 months): $108.64
- ACC levy: Included in registration fee — covers injury in accidents
5. Petrol
Petrol cost depends heavily on kilometres driven and engine size.
Assumptions: Regular 91 petrol at $3.35/litre (MBIE weekly adjusted retail price, week to 25 September 2026; prices move weekly)
| Annual km | Fuel economy (L/100km) | Annual petrol cost |
|---|---|---|
| 10,000 km | 7L/100km | $2,342 |
| 15,000 km | 7L/100km | $3,512 |
| 20,000 km | 8L/100km | $5,352 |
| 15,000 km | 10L/100km (SUV/older) | $5,018 |
Average NZ driver covers around 13,000–15,000 km/year.
6. Servicing and Maintenance
| Vehicle age | Annual service estimate |
|---|---|
| Under 5 years (basic service) | $250–400 |
| 5–10 years (minor/major alternating) | $400–700 |
| 10+ years (higher risk of repairs) | $600–1,500+ |
Budget more for older vehicles — timing belts, suspension, brakes, and cooling systems all need attention as mileage increases.
7. Tyres
A set of 4 tyres costs $400–1,000 depending on size and brand, and lasts 40,000–60,000 km. At 15,000 km/year, expect to replace tyres every 3–4 years.
Annual tyre cost (amortised): $120–300/year
8. Parking and Tolls
- Auckland CBD parking: $5–25/day depending on location
- Wellington parking: $4–20/day
- NZ motorway tolls: Northern Gateway (Auckland) around $3–4 per trip, Tauranga Eastern Link ~$3.50
- Annual parking (commuter): $0 (free parking) to $3,000+ (paid CBD parking)
This cost varies enormously by location and work situation.
Full Annual Cost Model — Three Scenarios
Scenario 1: Cheap Used Car ($8,000 purchase price)
Example: 2012 Toyota Corolla, 130,000 km, purchased outright
| Cost item | Annual amount |
|---|---|
| Depreciation (~6% of $8k) | $480 |
| Insurance (comprehensive) | $700 |
| Registration | $109 |
| WoF + minor repairs | $250 |
| Petrol (13,000 km, 7.5L/100km) | $3,261 |
| Servicing | $500 |
| Tyres (amortised) | $175 |
| Total | $5,475/year ($456/month) |
Note: If you financed this car, add interest cost. If you drive more, petrol climbs.
Scenario 2: Mid-Range Used Car ($18,000 purchase price)
Example: 2018 Mazda CX-5, 60,000 km, purchased with a $10k deposit + $8k personal loan at 10.5%
| Cost item | Annual amount |
|---|---|
| Depreciation (~9% of $18k) | $1,620 |
| Insurance (comprehensive) | $900 |
| Registration | $109 |
| WoF + minor repairs | $150 |
| Petrol (13,000 km, 8.5L/100km) | $3,696 |
| Servicing | $450 |
| Tyres (amortised) | $200 |
| Loan interest (~$8k @ 10.5%, 3yr) | $1,380 |
| Total | $8,505/year ($709/month) |
Scenario 3: Newer Car ($35,000 purchase price)
Example: 2022 Toyota RAV4, 25,000 km, purchased with $10k deposit + $25k loan at 9.5%
| Cost item | Annual amount |
|---|---|
| Depreciation (~12% of $35k) | $4,200 |
| Insurance (comprehensive) | $1,200 |
| Registration | $109 |
| WoF (annual) | $100 |
| Petrol (15,000 km, 8.5L/100km) | $4,265 |
| Servicing | $400 |
| Tyres (amortised) | $250 |
| Loan interest (~$25k @ 9.5%, 5yr) | $2,850 |
| Total | $13,374/year ($1,115/month) |
EV Alternative — Is It Worth It?
Electric vehicles (EVs) have higher purchase prices but substantially lower running costs.
| Cost item | Petrol car | EV equivalent |
|---|---|---|
| Fuel/charging (15,000 km/yr) | ~$3,500–4,300 (7–8.5L/100km at $3.35/L) | ~$600–900 |
| Road user charges (15,000 km/yr) | Included in the petrol price | ~$1,140 ($76 per 1,000 km, plus admin fees) |
| Servicing (fewer moving parts) | $400–700 | $150–300 |
| Registration | $109 | $109 |
| WoF | $100 | $100 |
| Insurance | Similar | Similar |
EV running cost saving: roughly $1,500–3,000/year vs petrol (after road user charges), but EVs typically cost $10,000–20,000 more to purchase. The break-even point is typically 5–8 years depending on how much you drive.
Popular NZ EVs: MG4, BYD Atto 3, Nissan Leaf (used), Tesla Model 3. The Clean Car Discount rebate ended on 31 December 2023, and EVs have paid road user charges since 1 April 2024; check NZTA for the current RUC rate.
Car Affordability Rule of Thumb
A commonly used guide:
- Car value: should not exceed 20% of your annual gross income
- Annual running costs: typically 10–15% of the car’s purchase price
At a $70,000 salary, that means a car value up to $14,000. Annual running costs of $1,400–2,100 (excluding petrol). Add petrol (about $3,260 for 13,000 km at 7.5L/100km and $3.35/L) and reality looks more like $4,700–$5,400/year total.
Use the car affordability calculator to run your own numbers.
Next Steps
- New vs Used Car NZ — the financial case for buying 2–4 year old
- Used Car Buying Guide NZ — how to buy safely
- Buy vs Lease a Car NZ — financing options compared
- Car Affordability Calculator
- Consumer Decisions Hub