Irish Drivers Underestimate Annual Car Costs by 50%, ESRI Study Finds
Dublin: Most car owners in Ireland underestimate how much they spend on owning and running their vehicles each year, with the actual cost averaging around 50 per cent more than they expect, according to a new study by the Economic and Social Research Institute (ESRI).
The survey, which involved more than 800 car owners across Ireland, found that 72 per cent of respondents underestimated their annual motoring expenses. Participants were asked to estimate the cost of owning and using their cars, excluding the purchase price and depreciation.
On average, vehicle owners estimated that their annual costs would be approximately €2,000. However, after accounting for fuel, insurance, motor tax, parking, tolls, maintenance and other expenses, the actual average cost was closer to €3,000—around €1,000 more than anticipated.
Fuel was identified as the largest individual expense, costing an average of €1,560 per year. However, the study found that many drivers failed to fully account for additional expenses, including insurance premiums, motor tax, parking charges, tolls, servicing, tyre replacements and unexpected repairs.
Significant Differences Based on Fuel Type
The research also highlighted substantial differences in annual running costs depending on the type of vehicle. Electric vehicles were found to have average annual running costs of approximately €1,560, compared with €2,715 for petrol cars and €3,546 for diesel vehicles.
This means that the reported annual running cost of an electric vehicle was less than half that of a diesel car.
Dr Shane Timmons, a senior research officer at the ESRI, said the findings showed that many drivers lacked a clear understanding of the total cost of car ownership.
The study suggests that people tend to focus on immediate expenses, such as fuel, while overlooking costs that accumulate over time.
Dr Timmons said a better understanding of the true annual cost of owning a car could help people make more informed decisions when purchasing a vehicle, switching to an electric car or considering public transport.
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