What does a first car really cost in the first year?

Well beyond the purchase price. A young driver's first year includes insurance, which is often high for new and young drivers, registration, a warrant, fuel, servicing and tyres. Together these can add thousands on top of the car itself.

Why is insurance so high for young drivers?

Young and newly licensed drivers are statistically higher risk, so insurers charge more. Choosing a modest, safe car, a higher excess, and shopping around can reduce the premium, which is often the biggest running cost in year one.

How can a first car be cheaper to run?

A reliable, fuel-efficient, lower-powered car usually means cheaper insurance, fuel and maintenance. Spending a little more on a sound car can save on repairs, so the cheapest car to buy is not always the cheapest to run.

First Car Total Cost Calculator

This New Zealand calculator works out the all-in first-year cost of a young driver's first car, including the higher insurance that comes with a new or young driver, plus registration, fuel, servicing and tyres. The purchase price is only the start, and the running costs in year one often surprise families. You enter the car and the running costs, and the tool shows the true first-year total and the ongoing weekly cost.

Car purchase price

Insurance per year

Rego and WOF per year

Fuel per year

Servicing and tyres per year

all-in cost of the first year, including the car

Running costs, year one$0

Ongoing per week$0

Insurance is often the biggest running cost for a young driver; a modest, safe car and shopping around can lower it. The first-year total includes the car; later years are the running costs alone. Estimate only.

How it works

The calculator adds the yearly running costs, insurance, registration and warrant, fuel, servicing and tyres, then adds the purchase price to give the all-in first-year cost. It shows the running costs on their own, which is roughly what each later year costs, and the ongoing weekly cost. Seeing insurance and fuel laid out makes clear why a young driver's first car costs far more than the sticker price suggests.

Worked example

An $8,000 car with $1,800 insurance, $200 rego and warrant, $2,200 fuel and $900 servicing and tyres has running costs of about $5,100 a year. With the car, the first year is about $13,100, and the ongoing cost is roughly $98 a week once the car is paid for.

Related calculators

Car Running Cost Calculator: running costs.
Fuel Cost Calculator: fuel costs.
Car Loan Calculator: financing a car.
Driving Lessons Cost Calculator: getting licensed.

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