All the costs of buying and running a car

Are you about to buy a new or second-hand car in Ireland? In this article, we will look at the costs involved in buying and running a car and we’ll explore the benefits, expenses, and tips to make informed decisions about car ownership. 

All the costs of owning a car 

The cost of buying a new car in Ireland can vary greatly depending on several factors such as the make, model, specifications, and any additional features. According to the independent.ie, the average price of selling a car in the open market was €41,182 from January to June 2024. 

In general, new cars in Ireland can range from around €15,000 for a basic model to over €100,000 for luxury or high-performance vehicles.

Additionally, there may be other costs to consider such as registration fees, taxes, insurance, and any optional extras or upgrades. For the most accurate and current pricing, it's recommended to visit car dealerships or manufacturer websites in Ireland.

When it comes to the cost of a second-hand car, prices can vary widely based on factors such as the car's make, model, age, mileage, condition, and market demand. The age of the car is a big factor. Older cars are typically cheaper than newer models. Cars with higher mileage are usually less expensive than those with lower mileage and well-maintained cars with a full service history will generally cost more. In addition, certain models may be in higher demand, affecting their resale value.

Our guide to buying a second-hand car in Ireland provides lots of useful information to help you make an informed decision before making a purchase.

Registration fees 

In addition to the initial purchase price of a car, you will need to consider Vehicle Registration Tax (VRT) – a tax levied on the registration of motor vehicles in Ireland. It is payable when a vehicle is first registered in Ireland, either for new or imported used vehicles. The amount of VRT payable is based on several factors, including the type of vehicle, its open market selling price (OMSP), and its CO2 emissions.

For passenger cars, VRT is calculated based on the car's CO2 emissions. The rates are structured into different bands, with lower-emission vehicles generally attracting lower VRT rates. The tax is a percentage of the car's open marketing selling price (OMSP).

Electric vehicles may qualify for VRT relief, reducing the amount of tax payable. This is part of the Irish government's efforts to promote environmentally friendly transportation.

The Revenue Commissioners provide an online VRT calculator on their website, which can help estimate the VRT payable for specific vehicles based on their details.

When a vehicle is imported into Ireland, it must be registered with the Revenue Commissioners within 30 days of arrival. The VRT must be paid at the time of registration.

Vehicle registration and VRT payment are typically processed at National Car Testing Service (NCTS) centres, where the vehicle is inspected, and its details are recorded.

It's important to check the most current VRT rates and regulations, as they can change over time. The Revenue Commissioners' website provides detailed information and resources related to VRT, including the latest rates, exemptions, and the VRT calculator.  

Costs of running a car in Ireland 

Car insurance costs: It’s illegal to drive in Ireland without car insurance so before you drive away in your new car, you must have insurance in place. Having your car insured with Zurich Insurance gives you peace of mind that should the worst happen such as a breakdown, you are protected. Get a Zurich car insurance quote or learn more about the available discounts on our car insurance. 

Fuel costs: Fuel costs will vary widely depending on the make and model of your car and how many miles you do. If you’re looking for tips on driving efficiently, we’ve written an article that provides handy driving techniques could help you save fuel when driving.

Maintenance and repair costs: General car maintenance throughout the year can keep your car in good working order, making it more reliable and less prone to breakdowns. Taking care of your car will also keep you and your passengers safe and can help with the resale value of your car, so it makes sense to do the following on a regular basis. We have provided some handy routine car upkeep tips to get your car in good working order and running smoothly. 

Road tax: The amount of road tax payable depends on various factors, including the type of vehicle, its engine size, and its CO2 emissions. To get the most accurate and current information on road tax rates, you can visit Motor Tax online.

Are there any hidden costs to running a car? 

In addition to the cost of buying and running a car there are other unforeseen expenses to consider:

Depreciation: The decrease in the value of your car over time is one of the biggest hidden costs.

Maintenance and repairs: Routine maintenance (oil changes, tire changes, etc.) and unexpected repairs can be costly.

Fuel costs: The price of fuel can fluctuate and add up quickly, especially if you have a long commute

Financing charges: If you took out a loan to buy your car, the interest on the loan is an additional cost.

Parking: Paying for parking at work, at home, or in public places can be an additional expense.

Tolls: Regularly using toll roads can add up over time.