[Daily Knowledge] How much does it cost to maintain a car in a year? The real cost of driving in Hong Kong revealed
How much does it cost to maintain a car in Hong Kong? The real cost revealed (from my personal experience)
Hello everyone, I'm your editor! I often hear friends say, "Owning a car in Hong Kong is so expensive, not everyone can afford it!" But how much does it actually cost to maintain a car over the year? Do you know? As a car owner myself, I'm here to break down the costs of buying a car, insurance, parking, fuel, maintenance, tunnel tolls, miscellaneous fees, and government charges. I'll break it down for you! At the end of the article, I'll also share tips to help you save money and avoid unnecessary expenses!
1. Car purchase expenses (one-time or installment)
1. New car or used car?
- New car : Depending on the brand/model, the lowest price starts at $130,000 (such as Japanese small cars), and European cars are $250,000-$500,000 or even higher.
- Used cars : Prices range from a few thousand to hundreds of thousands of dollars. The year, mileage, and condition of the car affect the price.
Editor's truth
New cars in Hong Kong are expensive and depreciate in value the moment they're purchased. New buyers might consider a used car, which is both affordable and easy to get started with.
Car financing expenses (if any)
- Down payment: generally 20-30%
- Monthly payment: $2,000-$10,000 (depending on car price/loan term)
However, the cost of buying a car is not included in your annual daily expenses. The following are all "ownership costs" that car owners must face every year!
2. Breakdown of fixed expenses for car maintenance in a year
1. Vehicle license fee (license plate fee)
- One-year lease for a private car : $5,074 (under 1,500cc), $7,664 (over 1,500cc), the larger the car, the more expensive it is
- Two-year plan : Discounted, starting at $9,229
2. Compulsory automobile insurance (third party liability insurance)
- The law requires purchase
- Annual premium : $2,500-$5,000 (for ordinary private cars, more expensive for new owners without NCD)
- Comprehensive : $6,000-$20,000 (depending on vehicle age, model, and claim history)
Editor's Tips
- The presence or absence of an NCD (No Compensation Discount) affects your premium. The more you hold onto your insurance and the fewer incidents you face, the cheaper your insurance will be.
- It’s much cheaper to buy a second-hand car from a third party.
3. Parking Fees
- Monthly parking space rental for residential properties : $2,000-$6,000 (lower in the New Territories, more expensive in urban areas, and even more expensive in luxury properties)
- Street parking meter : $12-$16 per hour
- Shopping mall/hourly rental parking lot : $20-$50 per hour
One-year parking estimate
- Residential (assuming $3,000/month): $36,000
- Shopping mall, rework, outing (average $200-$500/month): $2,400-$6,000
4. Fuel costs
- Hong Kong's petrol prices are among the highest in the world ($24-$27/L in 2024)
- The average private car travels 10,000 kilometers a year, with a fuel consumption of about 7L/100km.
- Annual fuel cost : 10,000km x 7L/100km = 700L x $25 = $17,500
Editor's experience
- If you drive more than 10,000km, it is not uncommon to spend $20,000 a year on fuel.
- Hybrid/electric vehicle fuel costs can be reduced by 1/3-1/2
5. Repair and maintenance fees
- Basic maintenance (oil change, filter change, inspection) : $1,500-$3,000/year
- Emergency repairs (flat tire, battery replacement, air conditioning repair, brake pads) : $2,000-$10,000 (depending on vehicle age/luck)
- Tires : Replace every 2-3 years, $2,000-$5,000
Editor's truth
- New cars have fewer worries in the first two or three years. For older cars, it is recommended to set aside $5,000-$10,000 per year.
- Luxury cars/European cars have expensive parts and much higher maintenance costs
6. Tunnel fees/road tolls/tolls
- Cross-Harbour Tunnel, Eastern Harbour Tunnel, Western Harbour Tunnel : Each crossing costs between $20 and $75, separate for trams and private cars
- Tsing Sha Highway, Stonecutters Bridge : $8-$40/trip
- Assuming 200 tunnel crossings per year : $40 x 200 = $8,000
Editor's Tips
- Living in Kowloon and commuting to Hong Kong Island for work, I have to pay $1,000-$2,000 per month in tunnel tolls.
- Octopus/autodebit is convenient, but you need to check your wallet regularly!
7. Vehicle license inspection (for vehicles six years or older)
- Annual vehicle inspection : $585 (government inspection center), private $600-$1,500 (depending on the service)
- If additional inspection/repair is required, it will be charged separately
- New cars don't need to be inspected for the first six years
8. Annual inspection (for vehicles from Hong Kong heading north from the mainland)
- If you are eligible for "Hong Kong vehicles going north", you must meet mainland inspection requirements.
- Generally $1,000-$2,000/year (inspection + documents)
9. Cleaning and interior care
- Car wash : $50-$150/time, wash it yourself for cheaper
- Waxing, disinfection, and car maintenance : $500-$1,500/year (depending on how many cars you own)
10. Tickets/accidental expenses
- Parking tickets, speeding, illegal parking: starting from $320 each
- New drivers are prone to this, expect to pay $0-$3,000 per year (depending on driving habits)
3. Real Case Study: Annual Expenses for an Average Private Car (Median Estimate)
| project | Annual expenses (HKD/year) |
|---|---|
| License Fee | $5,000 |
| Insurance | $3,000 |
| Parking | $36,000 |
| Fuel costs | $17,500 |
| Maintenance | $5,000 |
| Tunnel/tolls | $8,000 |
| Vehicle Inspection | $1,000 |
| Car wash/care | $1,000 |
| Fines/Miscellaneous Fees | $1,000 |
| total | $77,500/year |
Item by item:
- Parking fees account for the largest proportion of your expenses. Living in a village house or housing estate with your own parking space can save you a lot of money.
- Fuel costs come second, the more you earn, the more you spend.
- Maintenance, tolls, and insurance are all fixed expenses
- Luxury cars/high-performance cars, it is not uncommon to spend hundreds of thousands a year
4. Editor’s Real Experience Sharing & Money-Saving Tips
1. Always budget for parking
- There are no private parking spaces in the city, and renting a parking space costs $4,000-$6,000/month
- New Territories/Village House Friends Can Save a Lot
2. Analyze your driving habits
- Only for holiday use, metered/temporary parking can save parking space rental
- Daily commuting costs, including parking, fuel, and tunnel fees, must be included.
3. Don’t skimp on maintenance
- Save money with regular maintenance, don't wait until it breaks down
- Find a trustworthy master, don't be greedy and take illegal jobs
4. Compare insurance policies
- Quotes from different companies vary greatly
- If you have NCD, remember to try to get a discount; if your car is old, consider switching to a three-year warranty.
5. Make good use of electronic payment/auto-debit
- Automatic payment via Octopus, Easy Payment, or credit card saves time and avoids fines
6. Using public transportation more often can save you a lot of money
- If you drive less than 5,000 kilometers a year, taking a taxi or a taxi + Uber may not be more expensive than owning a car.
5. Advanced expenses (if any)
1. Car loan interest
- If you have a loan, you need to calculate the annual interest of $3,000-$10,000.
2. Accessories/Upgrades
- Replacement of audio equipment, replacement of camcorder, modification, replacement of tires, and interior decoration: $1,000-$10,000/year
3. Year-end depreciation loss
- A new car depreciates by 10-20% in the first year, and its value decreases every year
6. FAQ
Q1: Are electric cars really much cheaper?
A: Electricity costs are cheaper than oil, and maintenance costs are also lower, but the car is expensive, charging and parking are limited, and insurance may not be much cheaper.
Q2: Will it be particularly expensive for beginners in the first year?
A: Yes! Without NCD, the premium is the highest, the chance of default is higher, and you should expect more miscellaneous fees.
Q3: Are used cars always cheaper?
A: It’s a good buy, but it will cost you a lot of money to maintain, the fuel consumption will be high, and the insurance premium may not be cheap. You need to consider the long-term costs.
Q4: How much can be offset with company reimbursement?
A: If it is a company car or for commercial use, you can declare the tax first. If it is a personal car, you cannot deduct the tax.
7. Editor’s Summary: Is car ownership in Hong Kong a “luxury” or a “necessity”?
My personal experience: Car ownership in Hong Kong isn't the most expensive, but it's certainly not worth it ! This is mainly due to high parking, fuel prices, and government fees, along with traffic jams and the difficulty of finding a parking space. Unless you truly need one (living in a remote area, commuting long distances to work, or traveling with a small family), owning a private car can cost you anywhere from HK$50,000 to over HK$100,000 or even HK$200,000 per year—not for everyone.
However, the freedom, convenience, and family fun that car ownership brings can never be matched by public transportation. If you can afford it and do your research, then you can happily own a car!
Final reminder: Policies change every year, so please refer to the Transport Department and government websites for the latest charges/regulations.
