RealCost Guide
Average Cost of Running a Car UK
The average cost of running a car in the UK is much more than petrol or electricity. Insurance, road tax, servicing, MOT costs, tyres, repairs, parking and depreciation can completely change what a car really costs each month and year.
Fuel is only one cost
A fuel-efficient car can still be expensive if insurance, tyres or depreciation are high.
Low mileage is not free
Insurance, tax, MOT costs and depreciation remain even when the car is used less.
Your own figure matters
Use your mileage, quotes and realistic repair risk instead of relying on one national average.
The simple answer
There is no single average that fits every UK driver
A small, reliable and modestly driven car may cost a few hundred pounds per month once every cost is included. A newer, premium, high-mileage or expensive-to-insure car can cost far more. The useful question is whether your own car sits below, near or above a realistic running-cost benchmark.
Calculate your own car running cost
Enter the car price, expected resale value, ownership period and regular running costs. The calculator estimates monthly running cost, yearly ownership cost, depreciation and total cost over the time you expect to keep the car.
This is a budgeting estimate, not a guaranteed future cost. Insurance renewals, fuel or charging prices, repairs, resale value and mileage can all change. Use real quotes where possible and include a sensible repair buffer, particularly for an older or used car.
What should be included in car running costs?
A realistic total includes visible bills, irregular expenses and value lost over time.
Regular use
Fuel or EV charging
Your mileage, MPG, miles per kWh and the price paid for fuel or electricity determine this part of the budget.
Driver-specific
Car insurance
Insurance varies by driver, postcode, vehicle, occupation, mileage, cover and payment method. Use a real quote before buying.
Legal cost
Road tax
Include the correct annual vehicle tax for the exact car and divide it by 12 when building a monthly budget.
Planned maintenance
Servicing and MOT
Routine servicing, MOT testing and likely MOT work should be treated as regular costs rather than unexpected emergencies.
Wear and risk
Tyres and repairs
Tyre size, mileage, car age, reliability and previous maintenance can quickly change the real running cost.
Hidden value loss
Depreciation
Depreciation is not paid as a monthly bill, but it is real money lost as the car becomes worth less.
Real UK cost benchmarks, not just estimates
These figures come from named, current UK sources, covering the categories that can genuinely be averaged nationally.
Depreciation, tyres, repairs and parking are all real costs, but none of them can be honestly averaged across every UK driver — they depend heavily on the specific car, its age and where you park. Depreciation in particular is often the single largest cost on a newer or financed car, which is why the worked examples below (not official averages) include it.
Example UK car running-cost benchmarks
These worked scenarios show how different cars and usage patterns change the answer.
Your result may be much lower or higher depending on the car, mileage, insurance quote, fuel economy, charging access, repair history, parking and depreciation. Replace every example figure with your own numbers in the calculator.
Fixed, mileage-linked and hidden costs
Understanding how each cost behaves helps explain why the average varies so much.
Fixed or mostly fixed
These costs remain even when the car is driven less.
✓ Insurance
✓ Road tax
✓ MOT test
✓ Parking permit
✓ Breakdown cover
Mileage-linked
These costs usually rise as the car is used more.
✓ Fuel or charging
✓ Servicing frequency
✓ Tyre wear
✓ Brake and suspension wear
✓ High-mileage depreciation
Hidden or irregular
These are often missed because they do not arrive neatly each month.
✓ Unexpected repairs
✓ MOT failures
✓ Several tyres at once
✓ Insurance renewal increases
✓ Depreciation when selling
Why drivers underestimate their running costs
It feels like the main cost because it is visible, but it may not be the largest cost overall.
Tax, servicing, MOT work and tyres should be divided across the year.
Older and used cars need a repair allowance rather than a perfect-year estimate.
The loss only becomes obvious when the car is sold, traded in or replaced.
A cheap car can become unaffordable if the real quote is much higher than expected.
Larger wheels, premium tyres and heavier cars can make replacement significantly more painful.
What makes a car cheap or expensive to run?
The purchase price alone does not decide which car costs less over time.
A genuinely lower-cost car usually has
✓ A manageable insurance quote
✓ Fuel economy suited to the real journeys
✓ Affordable tyres and common replacement parts
✓ Strong service history and lower repair risk
✓ Sensible depreciation
✓ Road tax and parking costs already checked
An expensive ownership trap often has
✕ A low purchase price but high repair exposure
✕ Premium servicing, tyres and parts
✕ Poor fuel economy for regular mileage
✕ High insurance for the driver or model
✕ Steep depreciation
✕ Complex technology with costly faults
Is your current car costing too much?
A high running-cost result does not automatically mean changing cars will save money. Compare the saving against the replacement car’s purchase cost, insurance, depreciation, tyres and repair risk.
Keeping the current car may make sense when
It is reliable, already paid for, suits your mileage and a recent repair was a one-off rather than part of a pattern.
Changing car may make sense when
Repairs are frequent, insurance is excessive, fuel use is high or the car no longer suits your journeys and practical needs.
Calculate each part of your running cost
Replace estimates with more accurate figures before buying, keeping or changing a car.
Fuel Cost Per Mile Calculator
Calculate petrol or diesel cost per mile, month and year.
Make the next car-cost decision
How to Reduce Car Running Costs
Target the costs that make the biggest difference without creating false economies.
Cheapest Cars to Run UK
Compare insurance, fuel, maintenance and depreciation rather than price alone.
Hidden Costs of Owning a Car
Check the ownership costs most drivers forget before buying or budgeting.
Average cost of running a car UK FAQs
What is included in the cost of running a car?
Include fuel or charging, insurance, road tax, servicing, MOT costs, tyres, repairs, parking, breakdown cover and depreciation.
How much does it cost to run a car per month?
It depends on the vehicle, driver, mileage, fuel economy, insurance and repair risk. A lower-cost car may cost a few hundred pounds per month, while newer, premium or high-mileage cars can cost much more.
Is fuel the biggest running cost?
Not always. Fuel can dominate for high-mileage drivers, but insurance, repairs, tyres and depreciation may be larger for other owners.
Should depreciation be included?
Yes, when comparing the real financial cost of cars. Depreciation is not a regular bill, but it is money lost as the car falls in value.
Is a cheap used car always cheaper to run?
No. A cheap used car can become expensive if it has poor fuel economy, high insurance, neglected maintenance, costly tyres or repeated repair problems.