Annual M1 passenger-car tax calculated using the formula applicable in 2026.
What makes up the real cost of a car?
Fuel consumption alone does not tell you how much a car actually costs to own. Some expenses occur every month, others once a year, while depreciation becomes especially visible when the car is eventually sold.
Depreciation
Cars generally lose value over time. For newer vehicles, depreciation can be one of the largest ownership costs.
Fuel or electricity
The cost depends on annual mileage, vehicle consumption and the price of fuel or electricity.
Vehicle tax
Owning and registering a vehicle in Estonia may involve applicable taxes and registration-related costs. The amount depends on the vehicle.
Insurance
Motor insurance is a recurring expense. If comprehensive insurance is used, its cost should also be included.
Maintenance and repairs
Oil, filters, brakes, fluids, suspension components and unexpected repairs can represent a significant annual expense.
Tyres
Summer and winter tyres, fitting, balancing and possible storage should also be included in long-term ownership costs.
Inspection and other costs
Technical inspection, parking, washing and other everyday expenses can add to the total.
Example: the real annual cost
This simplified example demonstrates why fuel consumption alone does not represent the true cost of owning a car.
This is an illustrative example. Actual costs depend on the vehicle, mileage, insurance, maintenance requirements and many other factors.
How can you reduce car ownership costs?
Compare fuel consumption and maintenance costs before buying.
Check the history and technical condition of a used vehicle.
Maintain the vehicle regularly to reduce the risk of major repairs.
Compare insurance offers.
Consider depreciation before choosing a vehicle.
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