No doubt it's everyone’s dream to run a car in Hong Kong as it provides a high degree of privacy and a more comfortable travelling experience than that offered by public transport. Becoming a car owner in Hong Kong seems unaffordable due to the rising running costs such as fuel and parking fees. Having said that, if you can become smarter about the way you run your car, it’s not impossible to afford your own set of wheels. Here are some practical saving tips from HoldCover.
Gasoline Expense
The gas prices in Hong Kong are the most expensive in the world, making it one of the major expenses of car ownership. However, as long as you develop some good habits, they could help cut your gas costs.
Gas saving tips:
i) Consider the purchase of a fuel-efficient car
ii) Use your fleet cards to enjoy rebates and discounts
iii) Lighten your vehicle as possible as you can
iv) Drive at a steady speed, avoid unnecessary speed-ups and brakes
v) Clean out carbon deposits regularly
vi) Keep tyre pressure in the right range
Want to keep updated with the gas prices and offers of different gas stations in Hong Kong? Make good use of “Oil Price Watch” launched by the Consumer Council!
Parking Charges
Given the shortage of land and speculation, Hong Kong has maintained its reputation for having the world’s most expensive parking which leads to another major expense of car ownership.
The monthly parking rate of private housing estates and the car parks owned by Link Real Estate Investment Trust located in Hong Kong Island and Kowloon is HK$3,000 to HK$4,000, those located in New Territories are relatively cheaper. The monthly charge of Housing Authority covered Car Parks located in Hong Kong Island and Kowloon (90% occupancy rate or above) is HK$2,890; the monthly charge of those located in Tuen Mun, Yuen Long, Tin Shui Wai, Tung Chung and Outlying Islands is HK$1,640. The hourly parking rate is HK$13 to HK$17.
Parking fees of shopping malls are typically HK$20 to HK$35, busy districts such as MongKok or Causeway Bay may charge for over HK$40. Nonetheless, parking offers provided by different shopping malls could save you some money.
Toll Fee
Although the tunnel charges are fixed, you can choose a cheaper alternative when you have sufficient time. Here are the toll rates of Hong Kong’s road tunnels in 2021:
Maintenance and Repairs
The older a car gets, the higher the maintenance and repair fees go. In other words, costs increase over time. Regardless of the age of your car and unexpected breakdowns, bear in mind that a well-maintained car could save you so much money. Remember to carry out an inspection on your vehicle every six months or 5,000 km; and replace consumables such as fuel, fuel filter and air-conditioning filter. Moreover, the government has made annual vehicle examination for cars aged six years or above mandatory. According to the latest information from Government Vehicle Examination Centres, the examination fee for a private car is HK$585.
Skipping regular maintenance might save you a little money. However, when major problems pop up, not only will you end up paying more, but you’ll also put yourself in danger due to safety issues.
License Fee
You can pay your license fee either yearly or once every four months. The government has adjusted the annual license fees of vehicle licenses for private cars and electrically powered passenger vehicles since February 2021, here are the updated fees:
*If private car uses fuel of light diesel oil as defined in section 69 of the Dutiable Commodities Ordinance (Cap. 109), the additional fee required has been adjusted to HK$1,898.
In conclusion, paying your license fee yearly is cheaper than once every four months; and you will have to pay less if you run an electrically powered passenger vehicle.
Car Detailing Fee
For car lovers, nothing is sweeter than the smell of a new car. Washing and waxing regularly is the only way to get your car looking new, you can save up money if you do it yourself. As every Hongkonger has a busy life, many car owners would rather pay for auto detailing services for their cars. You can find these services at gas stations, car washes and even social welfare organizations (SWOs). Typically, a car wash will cost you around HK$100 to HK$250; and HK$500 to HK$2,000 for waxing, depending on the materials.
Car Insurance
According to Section 4 of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap 272), it shall not be lawful for any person to use, or to permit any other person to use, a motor vehicle on a road unless the vehicle concerned is covered by valid third party risks insurance. You can choose the coverage tailored to your needs, either Third Party Insurance or Comprehensive Insurance. Moreover, understanding how your premium is calculated might help save your insurance expense, here’s another blog by HoldCover to help you get to know more about premium calculation: Private Car Insurance: Differences between Third Party Insurance and Comprehensive Insurance
With HoldCover’s one-stop insurance online platform, you don’t have to spend a lot of time getting quotes from different insurers anymore. Whether you are looking for third party or comprehensive car insurance, you can get instant quotes, compare policies and buy the one that fits you best on HoldCover as we offer a wide range of car insurance products.
Reference: Transport Department, Housing Authority, GovHK, Consumer Council
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