Cheapest Cars to Run in NZ

Many Kiwis focus on the sticker price when buying a car, but the real cost of ownership is what you pay week after week, month after month. A car that costs $8,000 to buy but $3,000 a year to run is more expensive over five years than a car that costs $10,000 to buy but only $1,500 a year to run. Understanding running costs before you buy can save you thousands.

What Makes Up Running Costs?

• Fuel: The biggest ongoing cost for most drivers. A car that does 6L/100km versus one that does 10L/100km saves you roughly $1,200 a year if you drive 15,000km (at $3.00/litre).
• Insurance: Varies widely by vehicle. Smaller, less powerful cars are consistently cheaper to insure.
• Maintenance and repairs: Common Japanese cars have the cheapest parts in NZ because wreckers are full of them. European cars typically cost two to three times more for equivalent parts.
• Tyres: Smaller wheels (14-16 inch) use cheaper tyres. Budget around $80-$120 per tyre for common sizes versus $150-$250 for larger or less common sizes.
• WoF and registration: These are fixed costs, but cars that consistently pass WoF without issues save you the cost of repairs to get a pass.

The Cheapest Cars to Run

1. Toyota Vitz / Yaris

The Vitz tops this list because it excels in every running cost category. The 1.0L or 1.3L engine delivers fuel economy of 5-6L/100km, insurance is among the lowest of any car in NZ, and parts are absurdly cheap thanks to the sheer number of these cars on our roads. A set of brake pads might cost $40-$60 from a wrecker, and oil changes are straightforward. Annual running costs (excluding fuel) can be as low as $1,000-$1,500.

2. Suzuki Swift

The Swift is remarkably cheap to run. The 1.3L engine sips fuel at around 5.5-6.5L/100km, and the car is light enough that brakes and tyres last a long time. Insurance costs are low, and Suzuki parts are readily available in New Zealand. The Swift is also known for straightforward WoF inspections — there are few complex systems to go wrong. The engine timing chain means no expensive belt replacement either.

3. Honda Fit / Jazz

Honda engineered the Fit to be efficient in every sense. Fuel economy of 5.5-7L/100km keeps fill-ups infrequent, and the 1.3L engine requires minimal maintenance beyond regular oil changes and occasional spark plugs. The CVT transmission is low-maintenance, and Honda's build quality means components last a long time before needing replacement. Insurance is affordable, and parts availability in NZ is excellent.

4. Mazda Demio / Mazda 2

The Demio consistently achieves 5.5-6.5L/100km and wears through consumables slowly thanks to its light weight. Mazda parts are competitively priced in New Zealand, and the car's simplicity means fewer things to go wrong. The timing chain eliminates one of the more expensive service items, and the brakes and clutch (on manual models) last well. Insurance groupings are low, keeping premiums manageable.

5. Toyota Corolla

While slightly thirstier than the micro-cars above at 7-8L/100km, the Corolla compensates with extraordinarily cheap parts and servicing costs. It is the most common car in New Zealand, which means competitive pricing at every mechanic and parts shop. The engines are so reliable that maintenance costs over a five-year ownership period are among the lowest of any car. If you need something a bit larger than a Vitz but still want rock-bottom running costs, the Corolla is the answer.

6. Toyota Aqua / Prius C

For the absolute lowest fuel costs, you cannot beat a hybrid. The Toyota Aqua achieves an impressive 3.5-4.5L/100km in real-world driving, which can halve your fuel bill compared to a conventional car. Hybrid-specific maintenance is minimal — the battery packs in these Toyotas have proven very durable, and brake pads last longer because of regenerative braking. Insurance is reasonable, and the car qualifies for lower road user charges. Used examples start from around $8,000.

7. Nissan Note

The Nissan Note is an often-overlooked option that offers excellent economy. The 1.2L or 1.5L engine returns around 5.5-7L/100km, and the car is spacious enough for small families. Parts are affordable (though not quite as cheap as Toyota equivalents), and insurance costs are low. The Note is a practical, no-fuss car that keeps running costs firmly in check.

Cars to Avoid for Low Running Costs

Some cars might look like bargains at the point of purchase but cost significantly more to keep on the road:

• European luxury brands (BMW, Audi, Mercedes): Parts can cost three to five times more than Japanese equivalents, and specialist servicing is expensive.
• Turbocharged performance cars: Higher fuel consumption, more expensive insurance, and premium parts add up quickly.
• Large SUVs and utes: Fuel consumption of 10-14L/100km means you could be spending $4,000-$6,000 a year on fuel alone.
• Older European cars: Electrical issues, hard-to-source parts, and specialist labour rates make these expensive to maintain in NZ.

Tips to Reduce Running Costs

• Keep your tyres inflated to the correct pressure — under-inflation increases fuel consumption by up to 3%.
• Stick to the service schedule. Skipping services leads to bigger, more expensive problems down the track.
• Shop around for insurance annually. Loyalty discounts are often smaller than the savings from switching providers.
• Use comparison sites like Gaspy to find the cheapest fuel near you.
• Learn to do basic maintenance yourself — replacing air filters, wiper blades, and topping up fluids is straightforward and saves on labour costs.

Choosing a car with low running costs is one of the most effective ways to keep more money in your pocket. The cars on this list all deliver reliable, affordable motoring that makes financial sense for Kiwi drivers.

← Back to all reviews