Glossary

A vehicle powered entirely by an internal combustion engine (ICE) running on petrol or diesel. The most common type on NZ roads.

A vehicle that combines a petrol/diesel engine with an electric motor. It uses fuel but achieves better efficiency by recapturing energy during braking and assisting with electric power at low speeds.

A vehicle powered entirely by electricity stored in a battery. No petrol or diesel is used. Charged at home or at public charging stations.

A hybrid that can be plugged in to charge a larger battery, allowing short trips on pure electric power. Falls between a standard hybrid and a full EV. In our calculator, model this as a hybrid with lower L/100km.

The standard fuel efficiency measure in NZ. It tells you how many litres of fuel the car uses to travel 100 kilometres. Lower is better. Example: 6 L/100km means 6 litres for every 100 km driven.

The electricity consumption rate for EVs — how many kilowatt-hours of energy the car uses per 100 km. Lower is more efficient. Typical range: 14–22 kWh/100km.

A mandatory safety inspection required for all NZ vehicles. New vehicles need a WoF annually; vehicles over 14 years old need one every 6 months. Included in maintenance costs.

The annual licence fee paid to Waka Kotahi / NZTA to legally drive on NZ roads. Includes ACC motor vehicle levy. Also called "vehicle licensing".

The upfront cash payment you make when buying a car. The rest is covered by a loan. A larger deposit means a smaller loan and lower repayments.

The amount you borrow — calculated as the car price minus your deposit. This is the base amount that accrues interest.

The yearly percentage the lender charges on your outstanding loan balance. NZ car loan rates typically range from 7% to 14%. A higher rate significantly increases total repayments.

How many years you have to repay the loan. Longer terms mean lower weekly payments but more total interest paid. Common NZ car loan terms: 3–7 years.

The process of gradually paying off a loan through regular fixed payments. Each payment covers both interest and a portion of the principal. Early payments are mostly interest; later payments are mostly principal.

A savings product where you lock money away for a fixed period at a guaranteed interest rate. Used in our "Alternatives" section to model what happens if you invest your deposit instead of buying a car.

The complete cost of owning a car over a period — including loan repayments, energy/fuel, insurance, maintenance, rego, and depreciation. Goes far beyond just the purchase price.

The loss in a car's market value over time. Cars typically lose 15–25% of their value in Year 1 and 8–15% each year after. This is the single largest "hidden" cost of car ownership.

A depreciation calculation where the percentage is applied to the current (reduced) value each year, not the original price. This produces a curve that drops steeply at first and flattens over time — matching real-world behaviour.

The general increase in prices over time. At 3% annual inflation, something costing $100 today will cost ~$103 next year. In our calculator, inflation increases energy and running costs each year, while loan repayments stay fixed.

The estimated market value of your car at the end of the loan term, after accounting for depreciation. A higher residual value means less money "lost" to depreciation.

Ongoing annual expenses: insurance premiums, maintenance/servicing/WoF, and registration (rego). Separate from fuel/energy and loan repayments.

The weekly driving distance at which owning a car costs the same as using public transport or rideshare. Below this distance, one option is cheaper; above it, the other is.

The breakdown view showing each car's periodic cost split into energy, loan, running costs, and depreciation segments stacked on top of each other. The total height represents total cost.

Shows total money spent over time (solid lines, going up) and car value over time (dashed lines, going down). The gap between them is the "true cost" — money that won't come back when you sell.

The purple dashed horizontal line on the bar chart representing your maximum weekly/monthly/yearly budget. Bars that exceed this line mean you're over budget for that car type.