According to a nationally representative study by the Economic and Social Research Institute (ESRI) surveying more than 800 motorists across Ireland, 72% of drivers underestimate their annual car running costs by a substantial amount. While the median driver estimates yearly expenses at €2,000, actual costs reach nearly €3,000, driven largely by fuel, insurance, and maintenance.
The Gap Between Estimated and Actual Motoring Expenses
Most motorists focus heavily on the most visible expenses while overlooking secondary costs that accumulate over time. When surveyed by the ESRI, participants were asked to state how much they personally spent on owning and running their car, excluding vehicle purchase prices and depreciation.
The median driver estimated these yearly expenses at €2,000. However, actual tracking revealed that real-world costs sit closer to €3,000—making total expenditures roughly 50% higher than public perception suggests. Fuel emerged as the single largest reported expense, accounting for a median annual cost of €1,560 per driver. Additional everyday financial burdens included motor insurance, motor tax, parking fees, toll charges, and routine vehicle maintenance.
Pro Tip: Tracking Your True Mileage Costs
Comparing Electric Vehicle and Traditional Fuel Expenses
Annual vehicle upkeep varies dramatically depending on the powertrain, according to the ESRI findings. Drivers of electric vehicles (EVs) reported annual running costs close to half those of motorists driving traditional petrol or diesel cars.
Owning and operating an electric vehicle costs around €1,560 per year on average. In sharp contrast, petrol car owners face median annual expenses of €2,715, while diesel vehicle drivers shoulder the highest burden at €3,546 per year.
| Vehicle Type | Reported Median Annual Cost |
|---|---|
| Electric Vehicles (EV) | €1,560 |
| Petrol Cars | €2,715 |
| Diesel Cars | €3,546 |
Why Motorists Misjudge Their Transport Budgets
“These findings show that most motorists are not aware of how much their car costs them each year,” said Dr. Shane Timmons, Senior Research Officer at the ESRI and co-author of the study.
Dr. Timmons explained that when people evaluate their driving expenses, they lock onto immediate, highly visible outflows like filling up the tank. They routinely forget taxes, service intervals, and unexpected repairs that accumulate over longer periods. Improving public awareness of these full costs is essential, as Dr. Timmons noted it could “help people make more informed transport decisions.”
Did you know?
Fuel is not the only heavy hitter in a car’s annual budget.
Frequently Asked Questions
How much do drivers typically underestimate their annual car costs?
According to the ESRI study, 72% of motorists underestimate their motoring costs by a substantial amount. While the median estimate stands at €2,000 per year, actual costs are nearly €3,000—about 50% higher.
What is the most expensive type of car to run annually?
Diesel cars are the most expensive to run, with a median annual cost of €3,546, followed by petrol cars at €2,715. Electric vehicles are significantly cheaper, costing around €1,560 per year.
Does the ESRI estimate include vehicle purchase prices?
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