Cost guide
How much does it cost to run a car in the UK?
In short. The RAC's 2024 'Cost of Motoring' report put the all-in cost of running a typical petrol or diesel car at around £3,000–£3,800 a year before depreciation. Add depreciation and the total real cost is often £4,500–£6,500 a year.
Running costs depend mostly on the car's value, age, fuel type and how many miles you drive. Insurance, fuel and depreciation are the three biggest single line items for most drivers.
Last reviewed:
·Typical range: £3,000–£6,500 /year (a year, all-in)Typical breakdown
| Item | Typical range | Note |
|---|---|---|
| Fuel | £900–£2,200/yr | 10,000 miles at 45 mpg → ~£1,500 at £1.45/litre petrol |
| Insurance | £400–£1,200/yr | Higher for young drivers and powerful cars |
| Vehicle Excise Duty (road tax) | £20–£735/yr | Depends on first-registration date and CO₂; expensive-car supplement on cars over £40k from year 2–6 |
| MOT | Up to £54.85 | Statutory maximum for a car |
| Servicing & repairs | £250–£700/yr | |
| Depreciation | £1,000–£3,000/yr | Often the largest cost on a newer car |
| Breakdown cover | £40–£170/yr |
What changes the cost
- Annual mileage
- Age and value of the car (depreciation)
- Postcode (insurance and parking)
- Driver age and no-claims history
- Fuel type (electric cars have lower per-mile fuel but higher depreciation in some cases)
Worth knowing
- The official gov.uk vehicle check shows the current VED band and MOT history for any UK car
- Auto-renewed motor insurance is often priced higher than a fresh quote on comparison sites
- Monthly insurance instalments typically include a finance charge of around 10–25% APR
FAQ
- Is it cheaper to run an electric car in the UK?
- Home-charged EVs typically cost 3–5p per mile vs 14–18p for petrol, but list prices are higher and depreciation in the used market has been steeper recently. From April 2025, EVs also pay VED. Real total cost depends heavily on whether you can charge at home.
- Do I have to pay road tax on a classic car?
- Cars built more than 40 years ago can apply for 'historic vehicle' tax status and are exempt from VED and MOT, but you must still apply to tax them at £0.
- What's the cheapest way to insure a car?
- There's no single trick. Telematics ('black box') policies can lower premiums for young drivers; named drivers must be genuine; switching at renewal is usually cheaper than auto-renewing.