Drivers underestimate the cost of running a car - ESRI

New research conducted by the Economic and Social Research Institute (ESRI) reveals that many Irish motorists are unaware of the true costs associated with owning and running a car. The study surveyed over 800 motorists across the country and found that 72% of respondents underestimated their annual motoring expenses by a significant margin.

When asked about their personal spending on vehicle ownership and operation (excluding purchase and depreciation), participants' estimates were considerably lower than the actual costs. In fact, the true annual expenses amounted to nearly €3,000, which is 50% higher than the self-reported figures.

Fuel expenses emerged as the primary cost, with a median annual expenditure of €1,560 per car. Other notable costs included insurance, motor tax, parking, tolls, and maintenance. The study also uncovered that the annual cost is heavily influenced by the type of vehicle. Drivers of electric vehicles (EVs) reported significantly lower running costs, around €1,560 per year, compared to €2,715 for petrol cars and €3,546 for diesel cars.

This indicates that EV ownership is considerably more cost-effective than conventional internal combustion engine vehicles.

Dr. Shane Timmons, a Senior Research Officer at the ESRI and co-author of the study, highlighted that most motorists tend to focus on the most visible expenses, particularly fuel costs, while neglecting other costs that accumulate over time. Improving public awareness of the complete picture of car ownership expenses could empower individuals to make more informed decisions regarding their transportation choices.