There are a variety of vehicle options available on the New Zealand market – petrol, diesel, hybrid, EV, electric bikes. Research which option best suits your budget and needs being mindful of ongoing costs as well as the upfront price. A modest, reliable vehicle is usually enough to meet most people’s needs and can help avoid borrowing or dipping into savings for a more expensive option.
- Surveys of owners have shown that Japanese vehicles require fewer repairs than those from other countries. If you buy a make of car that is not common in here, it could be difficult to get parts and if they are available, they could be very costly.
- If you are forced to borrow in order to buy a vehicle, get a loan from a bank or credit union. If you let a motor vehicle dealer arrange finance for you then you may end up paying far higher interest and more in additional charges.
Annual costs of vehicles
The annual cost of running a motor vehicle ranges from $8,000 - $15,000. This takes into account the following:
- The reduction in market value each year
- The loss of interest on the money used to buy the vehicle
- The financing costs, if any
- Registration and insurance
- Road user miles for diesel vehicles
- Running costs and repairs
Tips for saving on fuel
- Focus on how you drive. NZTA and EECA advise that smooth driving, steady speeds, gentle braking, less idling can cut the use of fuel (and the time in between replacing tyres on electric vehicles).
- Maintain tyre pressure and reduce drag by removing roof boxes when not in use.
EVs vs Petrol Vehicles
Electric vehicles (EVs) are generally 30% to 40% cheaper to run than petrol alternatives, offering significant, consistent savings on fuel and maintenance. Quashed | EV vs Petrol Car: Total Cost of Ownership in New Zealand 2026
- Fuel/Energy Costs: Charging an EV at home is significantly more cost effective than running a petrol vehicle, especially when charging at off-peak times. Some power companies offer special, lower-cost overnight rates for EVs, potentially leading to significant savings on charging.
- Upfront Cost: the upfront cost of buying an EV can be higher than a petrol car. Used EV imports may provide an affordable option which offering savings on fuel over time. However battery advancements have been significant.
- Maintenance: Full electric vehicles have fewer moving parts, reducing maintenance costs significantly. However they are heavier, creating the need to replace tyres more frequently. With a Hybrid you need to still maintain the engine, so you save on around town running costs but still incur annual service fees.
- Road User Charges (RUC): Since April 1, 2024, EV owners in NZ must pay RUCs ($76 per 1,000km - correct April 2026). Even with this added expense, EVs generally remain cheaper to operate than petrol vehicles, when charged at home rather than using public chargers.
Ways to make additional transport savings
If you can use public transport and a taxi/Uber from time to time, this is much cheaper than owning a car.
Those who live in a community where everything is within easy walking or biking distance can save a lot of money by not owning a car, buying an e-scooter or e-bike and a basket, backpack or paniers for groceries.
Avoid owning two cars unless this is essential. There are e-bikes available with extended carriers that support carrying one or two children to preschool, saving on the need to own two cars.
Instead of making a trip whenever you think of something you need, make a list and only go out when this is necessary or plan to get it when you have another reason to visit that area.
If children walk to school, they will be happier and healthier and you will save time and money.
Useful Links
