A study published by the Economic and Social Research Institute (ESRI) reveals that nearly three-quarters of motorists in Ireland significantly underestimate how much it costs to keep a vehicle on the road. On average, drivers underestimate annual running expenses by roughly €1,000, failing to account for cumulative recurring costs beyond immediate fuel purchases.

The research, funded by the Department of Transport, surveyed a nationally representative sample of more than 800 motorists. Participants were initially asked for an unprompted intuitive estimate of their annual car expenditure. Researchers then guided them through an itemised breakdown of recurring expenses—including fuel or charging, motor tax, insurance, servicing, parking, and tolls—while excluding vehicle purchase price and depreciation.

While the median intuitive estimate among motorists was €2,000 per year, itemised reported expenses brought the actual median running cost closer to €3,000 annually—almost 50 per cent higher than perceived. Fuel proved to be the single largest ongoing expense, accounting for a median annual cost of €1,560.

The study highlighted significant variance across engine types. Electric vehicle (EV) drivers reported the lowest median annual running costs at €1,560, compared to €2,715 for petrol cars and €3,546 for diesel vehicles. Despite the absolute cost differences, the inclination to underestimate total expenditure was consistent across vehicle types, age brackets, and income demographics.

Shane Timmons, senior research officer at the ESRI and co-author of the study, noted that motorists tend to focus on immediate, highly visible payments such as fuel while overlooking secondary costs that accumulate over time. He stated that raising awareness regarding the comprehensive financial reality of car ownership could support more informed transport decisions.