Frequently Asked Questions

DriveSmarter is a free, educational car cost comparison tool designed for New Zealand buyers. It helps you visualise and compare the true cost of owning a Fuel, Hybrid, or Electric vehicle — including loan repayments, energy costs, running expenses, depreciation, and inflation over time.

No. DriveSmarter is strictly an educational tool. The results are estimates based on the inputs you provide and generalised assumptions. They are not personalised financial advice. We strongly recommend consulting a licensed financial adviser, bank, or qualified professional before making any car purchase or financial decision.

Anyone in New Zealand considering buying a car — whether it's your first car, a replacement, or you're weighing up whether to switch from petrol to electric. It's also useful if you're wondering whether keeping your current transport arrangement (public transport, rideshare) might be more cost-effective.

No. DriveSmarter runs entirely in your browser. We don't collect, store, or transmit any of the numbers you enter. There is no sign-up, no account, and no cookies tracking your inputs. See our Privacy Policy for full details.

Litres per 100 kilometres (L/100km) is the standard fuel efficiency measure used in New Zealand and most of the world. A lower number means better fuel economy. For example, 6 L/100km means the car uses 6 litres of petrol to travel 100 km. You can find this figure on the vehicle's fuel economy label or in the manufacturer specifications.

Kilowatt-hours per 100 kilometres is the EV equivalent of L/100km. It measures how much electricity the car uses to travel 100 km. Typical values range from 14 kWh/100km (very efficient) to 22 kWh/100km (larger EVs). A lower number means cheaper running costs.

We use a diminishing value method. You set a Year 1 depreciation rate (default 20%) and an ongoing rate for Year 2+ (default 10%). This means a $35,000 car loses ~$7,000 in Year 1, then a decreasing amount each subsequent year. This closely mirrors real-world NZ used car market behaviour.

The dashed lines on the cumulative chart show your car's declining value over time, so you can compare what you've spent vs. what the car is actually worth.

Inflation increases your energy and running costs (fuel, electricity, insurance, maintenance, rego) each year. Your loan repayment stays fixed — that's how real loans work. The cumulative chart factors in compounding inflation, so you see a realistic projection of total spending over the loan term rather than a simple straight-line estimate.

Running costs include three categories you can set per car:

Insurance — your annual vehicle insurance premium.
Maintenance — annual servicing, tyres, WOF, repairs.
Registration (Rego) — annual vehicle licensing fee in NZ.

These are converted to a weekly figure and added to your energy and loan costs for the total weekly ownership cost.

The budget limit represents the maximum you can comfortably afford per week for all car-related costs combined (loan, fuel/energy, insurance, maintenance, rego). The purple dashed line on the bar chart shows this limit, and each car's summary card shows whether you're under or over budget.

The stacked bar chart breaks down each car's periodic cost into four segments: Energy/Fuel (darkest), Loan Repayment (medium), Running Costs (lightest), and Depreciation (grey, dashed). You can toggle between weekly, monthly, and yearly views. The purple dashed line shows your budget limit.

The line chart shows two things per car type:

Solid lines = cumulative total spending over time (inflation-adjusted). These curve slightly upward as inflation compounds.
Dashed lines = the car's residual market value (depreciation). These curve downward as the car ages.

The growing gap between your spending line and value line represents the "true cost" of ownership — money that doesn't come back when you sell.

The Alternatives section helps you explore what would happen if you didn't buy a car. It compares two scenarios: (1) investing your deposit in a term deposit and using public transport, and (2) putting your deposit and loan payments toward your mortgage instead. This can reveal whether car ownership truly makes financial sense for your situation.

The results are estimates based on standard financial formulas and the values you input. Real-world costs can differ due to fluctuating fuel/electricity prices, unexpected repairs, changes in insurance premiums, actual resale values, and individual driving patterns. Use the results as a starting point for comparison, not as a guarantee of future costs.

$2.80/L represents a mid-range average for regular unleaded petrol across New Zealand as of early 2026. Prices can vary from ~$2.00 in cheaper regions to $4.50+ for premium fuels. Adjust the slider to match your local prices for more accurate results.

NZ residential electricity prices typically range from $0.30–$0.75 per kWh depending on your provider and region. The default is $0.42/kWh. Check your latest power bill for your actual rate. If you charge at public fast-chargers, the cost may be higher (~$0.50–$0.80/kWh).

Not directly. Government incentives change frequently. If a rebate applies to the EV or hybrid you're considering, simply reduce the car price by the rebate amount when entering it into the calculator. Check the Waka Kotahi NZ Transport Agency website for current incentives.