How Much Does It Cost to Run a Car in the UK?

Owning a car is about much more than the initial purchase price. It’s a commitment to ongoing expenses that can quickly add up, from insurance and fuel to maintenance and unexpected repairs.

Whether you’re in the market for a new vehicle or want to assess the financial impact of the one you already own, understanding these costs is essential for smart budgeting. In this guide, we’ll break down the various expenses of car ownership and show you how to calculate them.

How much does it cost to run a car?

According to NimbleFins, UK car owners spend over £3,400 each year running their cars. The personal finance site analysed real spending data to determine the average running costs associated with vehicle ownership, which you can see in the table below.

NimbleFin’s analysis found that the cost of owning a car is 8% higher than 2020.

Transport for London calculated a similar average cost for owning and running a car in London using data from Money Helper, confused.com car insurance and government road tax rates. The numbers below exclude the price of the vehicle/leasing and parking.

• Outer London: £3,186/year

• Inner London: £3,502/year

Rising repair costs

Unfortunately, FixMyCar’s data shows that repair prices are also rising. As highlighted in our industry report, Making Tracks, the average quote for a repair in 2025 was £267.16, up from £249.46 the previous year. That's an increase of 7%.

The price of a clutch replacement, one of the most frequently requested jobs on our platform, climbed by £50 year-on-year, bringing the average to £687.60. Routine servicing has also become more expensive, with the cost of a full service increasing by 3.8%.

Despite these high costs, there are ways to save money, such as shopping around for the best car insurance deal and keeping your car in good condition. And it isn’t just insurance where you should compare prices to find the best deal - the same goes for repairs.

Types of driving costs

• Running costs - day-to-day costs of using your car, including fuel.

• Standing charges - costs of owning a car that are required whether or not you use it.

Running costs

Fuel

The cost per mile of fuel can vary significantly depending on:

• Fuel type

• Fuel price

• The car’s efficiency

• How you drive

Prices differ across the country and depend on the brand of fuel used. Finding the cheapest in your area will help you save money - it might only be a few pence difference, but it will add up over time. It’s also worth researching prices if you’re away from home.

Find out how to get the best fuel efficiency from your car.

MOT and servicing costs

Cars over three are legally required to undergo an annual MOT test to ensure roadworthiness. The maximum price of an MOT for a car is set by the government and, at the time of writing, stands at £54.85.

Servicing isn’t a legal requirement, but it’s recommended to keep your car in good condition for longer. It can also help you identify issues before they become significant and more expensive to fix.

An air conditioning service is also recommended every two years.

Replacement parts

Some vehicle parts need replacing more than others. You’ll need to factor bulbs, wipers, filters, fluids and brake materialsinto your calculations. The main parts that need regularly changing are tyres and wipers.

A car could go through a complete set of tyres in four years. When you calculate the cost of replacing them, make sure this includes having them fitted, wheel balancing and old tyre disposal. 

It’s always best to research what kind of tyres you need and shop around for the best price. Remember, main dealers will be considerably pricier. These guides can help you decide:

• Budget car tyres - are they any good?

• Premium car tyres - are they worth it?

• Are summer tyres worth it?

• Are winter tyres worth it?

• Best winter tyres for your car

Windscreen wipers should be replaced every 12 months, sooner if you live in a cold climate. You can do this easy maintenance job at home, which is a good way to save money. Find out how in this guide.

Fluids and filters are usually taken care of during a full service.

Parking and toll costs

The amount you spend on parking and toll roads in a year depends on where you live and how you use your vehicle. It’s a few pounds here and there for most drivers - nothing significant. But the total cost can be much more if you commute to work and there’s a toll road on your journey.

We recommend comparing costs to see whether driving to work or using public transport is cheaper.

Standing charges

Insurance

You’ll have to insure your car to get it on the road, so if you choose a model in a low insurance group, you’ll likely end up paying less for your policy. You can also save money by choosing a policy with limited cover, though this has obvious drawbacks.

When taking out a car insurance policy, shopping around for the best price is always a good idea.

There are three different types of insurance:

• Comprehensive: includes cover for damage to your vehicle and often comes with additional benefits.

• Third-party: the minimum level of insurance. It includes damage to other property and injury to others when you’re at fault but won’t cover your vehicle for damage, theft or fire.

• Third-party fire and theft: gives you a basic level of cover, including protection against fire and theft.

Learn more about car insurance and how to get it cheaper in this guide.

Breakdown cover

Breakdown cover isn’t a necessity, but many motorists choose to get it for their peace of mind. The cost of the cover quickly pays for itself if you find yourself stranded on the road with somewhere important to be. 

The cost of breakdown cover depends on the provider and the level of cover offered. Basic policies can cost as little as £30 a year.

You can calculate breakdown cover costs using the same formula as car insurance, replacing the annual insurance price with the yearly breakdown cover price.

This guide discusses whether breakdown cover is worth it.

Road tax

Paying road tax, also known as car tax or vehicle excise duty (VED), is a legal requirement for most road users. Learn more about how much it costs and how to pay here.

Cars registered between March 2001 and April 2017 

Tax is based on how much CO2 the vehicle produces, according to the official figure on the V5C document.

Cars registered after April 2017

The first-year rate for a new car is based on the CO2 it produces. After that, the standard rate is the same for all vehicles except those with zero emissions (until 2025, when EVs and zero-emissions vehicles will have to start paying road tax).

If your car has a list price of more than £40,000, an additional charge is payable for five years after the first year.

Important changes were announced in the 2025 Autumn Budget, which you can read about here.

Depreciation

Cars lose value over time - this is known as depreciation, and it can become one of the most significant costs you’ll face. Newer cars and those with a bigger price tag suffer the most from depreciation, but all vehicles experience it.

You can minimise the loss of value by:

• Dealing with small repairs

• Maintaining your car and keeping it in good condition

• Keeping mileage low

• Keeping a complete service record

Loan interest and cost of capital

You’ll either pay upfront or borrow money when you buy a car. Remember to account for the interest and additional fees if you decide to get your car on finance. 

Check out this guide to learn about the types, benefits and risks of car finance.

If you pay with cash, you should account for any interest you could have otherwise earned on that money by putting it into a savings account.

If you found this guide helpful, you might also like:

• The ultimate guide to car maintenance

• How to save money as a driver

• How much do car repairs cost?

• What's changed for drivers this year?

• How to get the best fuel efficiency from a car

• What to look for when buying a used car

• Car ownership 101: everything you need to know

• The cheapest cars to repair

• The cheapest family cars to maintain

• Top ten cheapest SUVs to maintain

• Top ten cheapest hatchbacks to maintain