A new report shows that motorists are facing increasing financial pressures with 69% citing fuel costs as their top financial concern when it comes to running a car.
The latest Motoring Report from Carzone finds that 33% of car owners spend between €201 and €300 a month on running costs and 23% spend more than €300 a month to keep their vehicle on the road.
40% of motorists say they always check the price of fuel before filling their tank and 41% sometimes check, today's reports shows.
The high cost of fuel also means motorists are considering other modes of transport, with 45% of those surveyed said they were using public transport more often.
Insurance also remains one of the top financial concerns for 65% of motorists with insurance premiums increasing for 36% of car owners this year.
Almost half of Irish motorists say that fuel type is now the most important factor when considering their next model.
Increasing costs are already impacting the choice of vehicle for many motorists, with 18% admitting they chose to buy a smaller car to save on running costs including fuel, tax and insurance.
A further 33% said they have already downsized, or plan to downsize the number of cars in their household to cut back on costs.
Today's report finds that 35% of motorists plan to purchase an electric (EV) or hybrid model as their next car, with 57% of those who planning a purchase saying the main reason for considering the switch is cheaper running costs.
Environmental benefits are the second most popular reason to purchase (50%).
Carzone noted the Government's recent decision to decrease private vehicle grant for EVs from €5,000 to €3,500 from July 1 this year may prompt motorists to speed up their plans of moving to an electric vehicle.
It also said that EVs now make up 21% of new car ad views on the site, but added that 50% of people surveyed do not believe the Government's target of having 945,000 electric vehicles on Irish roads by 2030 is realistic.
The Carzone report reveals that 44% of respondents usually change their car every four to five years and 27% change their car every three years or less.
23% have a budget of between €1,000 - €5,000, 35% budget between €5,000 - €15,000, 22% have a budget of €15,000 – 25,000 and 19% plan to spend over €25,000 on their next car.
Meanwhile, the BMW 5 Series is the most popular car model being searched for on Carzone, followed by the Volkswagen Golf. The premium BMW 3 Series and the Audi A6 claim third and fourth spot in Carzone's most-viewed models, while the Mercedes-Benz E-Class takes fifth place.
Karl Connolly, Audience Manager with Carzone, said today's report indicates that motorists are most concerned about the rising costs of running their vehicles, with fuel being the top concern for 69% of motorists.
"The effects of the pandemic are still lingering in the industry, with a third of car buyers having to consider another brand or car model due to stock shortages," Mr Connolly said.
"However, it is encouraging to see that a third of Irish motorists plan to purchase an electric or hybrid model as their next car, with 57% of those choosing to purchase because they are cheaper to run," he added.
The Carzone Motoring Report is compiled by analysing data from the over 10 million searches carried out on Carzone from January to February of this year, as well as in-depth research carried out by 3Gem with 1,000 Irish motorists.
