[How Much Does It Cost to Own a Car in Hong Kong?] Breakdown of Driving Costs | Fuel, Insurance, License Fees, Parking Rent, Maintenance

Although Hong Kong's public transportation system is super convenient, owning your own car remains unmatched by public transport. However, becoming a car owner in Hong Kong comes with significant costs beyond the budget of buying a car. The expenses for parking, insurance, fuel, and license fees are enough to discourage many car enthusiasts—not to mention repair and towing costs if your car unfortunately breaks down.

Many car owners are keen to find ways to reduce the costs of car ownership in Hong Kong, but how can you cut expenses without knowing where the money goes? In this Kwiksure feature, our experts will first explore the most common expenses car owners face, and then offer tips on how to save on car ownership costs.

Fuel Costs

Hong Kong's fuel prices are among the highest in the world and have shown upward trends over the years, making fuel one of the main expenses for car owners.

To save on fuel costs, consider choosing fuel-efficient car models, such as diesel or hybrid vehicles, or even electric cars. However, diesel and hybrid vehicles are typically more expensive than their gasoline counterparts (note: brand-new diesel cars are no longer available in Hong Kong, so you'll have to look for used cars). It’s recommended to calculate whether the savings on fuel will offset the higher purchase price, especially if you drive frequently or over long distances. Electric vehicles can further reduce driving costs if you have access to your own charging facilities.

Driving habits also significantly affect fuel consumption. Frequent rapid acceleration, hard braking, constant air conditioning use, and carrying heavy loads all increase fuel consumption. For example, driving on smooth highways is more fuel-efficient than in urban areas with frequent stoplights.

Other fuel-saving tips include:

• Reducing vehicle weight: Studies have shown that reducing the car's weight by 100 pounds can save 1%-2% on fuel.
• Maintaining proper tire pressure: Avoid oversized rims, which can delay acceleration and increase fuel consumption.
• Avoiding car modifications: Installing extra interior lights, for example, can indirectly increase fuel usage.
• Regularly clearing carbon deposits: This ensures smoother engine operation and reduces fuel consumption.
• Turning off the engine when parked: Idling for five minutes consumes roughly the same amount of fuel as driving one kilometer.
• Using the Consumer Council's fuel price tracker: Monitor fuel prices across companies and take advantage of discounted offers.

Parking Fees

Given Hong Kong’s limited land supply, parking fees are unsurprisingly high. Rates vary depending on the area: parking lots under the Housing Authority charge hourly rates of $13 to $20, while LINK properties start at $20 per hour. Larger shopping malls typically charge $20 to $25 per hour. In busier districts like Causeway Bay, Tsim Sha Tsui, and Mong Kok, hourly rates often start at $30. On weekends, some malls even charge up to $70 per hour. To save money, keep an eye out for parking discounts offered by various malls.

Monthly parking fees are not much cheaper. Housing Authority car parks adjust rates annually, based on demand and location. Data shows that in Hong Kong and Kowloon, covered fixed parking spaces in Housing Authority estates with occupancy rates exceeding 90% cost nearly $3,000 per month. In the New Territories, monthly fees are generally lower, especially in areas like Tuen Mun, Yuen Long, Tin Shui Wai, Tung Chung, and the outlying islands, where monthly parking fees are around $1,640.

Monthly rates at car parks under LINK and private housing estates also vary widely depending on the location. On Hong Kong Island and in Kowloon, fees are higher than in the New Territories. In some large housing estates with limited parking spaces, monthly fees can range from $3,000 to $3,800.

Car Insurance Premiums

Hong Kong law requires all vehicles on public roads to have valid third-party liability insurance. Violators face a maximum fine of $10,000 and up to 12 months imprisonment. Although third-party insurance is cheaper than comprehensive coverage, its scope is limited, covering only third-party liabilities and not providing any protection for the policyholder or their vehicle.

Car insurance premiums are influenced by various factors, such as the car’s market value, performance, the driver’s record, driving experience, age, profession, claims history, and traffic violation record. The presence of an NCD (No Claims Discount) or the deductible amount also directly affects premiums.

Depreciation and Maintenance Costs

As cars age, particularly second-hand vehicles, the likelihood of issues increases, along with higher repair costs.

Apart from emergency repair costs, vehicles require routine inspections every six months or after driving 5,000-10,000 kilometers (depending on the model and usage). Regular servicing includes changing engine oil, oil filters, air filters, and air conditioning filters. Depending on the brand and model, servicing costs generally range from $1,500-$2,000. For new cars, manufacturer-provided maintenance plans average $3,000-$6,000 per service.

Private vehicles over six years old are required to undergo annual inspections for license renewal. Inspection fees are $585, but many garages offer one-stop servicing and inspection packages, costing between $2,500-$4,000 depending on the car model, engine capacity, and inspection scope.

Skipping maintenance to save money may shorten the lifespan of critical components, such as engines and gearboxes, or even compromise road safety. It's better to save elsewhere than neglect vehicle upkeep.

Tunnel and Road Fees

Tunnel and road fees are a significant cost for drivers in Hong Kong. Below are the charges for private cars using key tunnels and roads:

License Fees

The regulations stipulate that vehicles operating on the roads in Hong Kong must pay a licensing fee. Drivers can choose to pay annually or every four months. However, if they opt for the latter, the total cost will be higher. Therefore, if drivers are certain they will continue using the vehicle, they typically choose to renew the license by paying once a year to save money.

The licensing fee for private cars depends on whether they use petrol or light diesel and the size of the engine's cylinder capacity. The larger the capacity, the higher the fee, and vice versa. In contrast, the licensing fee for electric vehicles is determined based on the vehicle's net weight.

Electric Car Fees

Unlike conventional vehicles, electric cars are charged based on weight, not engine capacity.

*As of December 5, 2024, the last update by the Transport Department was on February 24, 2021.

Car Grooming

Due to exposure to sunlight and rain, many car owners regularly wash their cars. However, legal car-washing spots in Hong Kong are limited, leading many owners to seek car-washing services at garages or car wash stations. Prices typically range from $100-$200.

Advanced grooming services such as waxing, coating, or applying Paint Protection Film (PPF) are more expensive. PPF, in particular, requires professional installation and cannot be done DIY, with costs ranging from several thousand to over ten thousand Hong Kong dollars.