Money & Budgeting

How Much Does It Cost to Run a Car UK 2026 — Complete Breakdown

The true cost of running a car in the UK including fuel, insurance, tax, MOT, servicing, and depreciation. Compare costs by car type, find out how to save money, and calculate your actual motoring costs.

By PocketWise · · 6 min read

Understanding the true cost of running a car helps you budget effectively and choose the right vehicle. Here’s a complete breakdown of UK motoring costs.

Total Running Costs Overview

Average Annual Costs by Car Type

Car Type Fuel Insurance Tax Maintenance Depreciation Total/Year
Small petrol (Fiesta) £1,200 £600 £180 £400 £1,200 £3,580
Medium petrol (Focus) £1,500 £700 £180 £500 £1,800 £4,680
Large petrol (Mondeo) £1,800 £800 £180 £600 £2,200 £5,580
Small EV (Zoe) £400 £550 £0 £300 £2,000 £3,250
Medium EV (Model 3) £500 £900 £0 £350 £3,500 £5,250
SUV petrol £2,200 £850 £180 £700 £3,000 £6,930
SUV diesel £1,800 £850 £180 £700 £2,800 £6,330

Based on 8,000 miles/year

Monthly Running Costs

Cost Category Low Average High
Fuel/electricity £80 £130 £200
Insurance £40 £70 £200
Road tax £0 £15 £50
MOT £5 £5 £5
Servicing £25 £40 £80
Repairs/tyres £30 £50 £100
Depreciation £80 £150 £300
Total £260 £460 £935

Fuel Costs

Fuel Prices (2026 Estimates)

Fuel Type Price/Litre
Unleaded petrol £1.45-£1.55
Super unleaded £1.55-£1.65
Diesel £1.50-£1.60
LPG £0.70-£0.80

Cost Per Mile

Car Type MPG Cost/Mile
Small petrol (50 mpg) 50 13p
Medium petrol (40 mpg) 40 16p
Large petrol (30 mpg) 30 21p
Small diesel (60 mpg) 60 11p
SUV diesel (35 mpg) 35 19p
Hybrid (55 mpg) 55 12p
Electric (3.5 mi/kWh) N/A 6-9p

Annual Fuel Costs by Mileage

Based on 45 mpg petrol car at £1.50/litre:

Miles/Year Litres Annual Cost Monthly
5,000 505 £758 £63
8,000 808 £1,212 £101
10,000 1,010 £1,515 £126
12,000 1,212 £1,818 £152
15,000 1,515 £2,273 £189
20,000 2,020 £3,030 £253

Electric vs Petrol Running

Fuel Type Cost/Mile 8,000 Miles 12,000 Miles
Petrol (40 mpg) 16p £1,280 £1,920
Electric (home charging) 6p £480 £720
Electric (public charging) 12p £960 £1,440
Savings (home) - £800 £1,200

Insurance

Average Premiums by Age

Age Group Average Annual Premium
17-20 £2,000-£3,500
21-25 £1,200-£2,000
26-30 £700-£1,100
31-40 £550-£800
41-50 £500-£700
51-60 £450-£650
61-70 £400-£600
70+ £450-£700

Factors Affecting Insurance

Factor Impact
Age Younger = more expensive
Location Urban/high crime = more
Vehicle Larger/faster = more
Mileage More miles = more
Claims history Claims increase premium
Job Some professions higher
Years driving More experience = less

Ways to Reduce Insurance

Strategy Potential Saving
Compare quotes £100-£400
Increase excess 10-20%
Black box (telematics) 20-40%
Add experienced driver 5-15%
Reduce mileage 5-15%
Pay annually 10-15%
Build no claims 30-65% over time
Secure parking 5-10%

Road Tax (VED)

Standard Rates 2026/27

CO2 Emissions First Year Standard Rate
0 g/km (electric) £0 £0
1-50 g/km £10 £180
51-75 g/km £30 £180
76-90 g/km £135 £180
91-100 g/km £175 £180
101-110 g/km £195 £180
111-130 g/km £220 £180
131-150 g/km £270 £180
151-170 g/km £680 £180
171-190 g/km £1,095 £180
191-225 g/km £1,650 £180
226-255 g/km £2,340 £180
Over 255 g/km £2,745 £180

Premium Supplement

If Car Cost Over £40,000 Extra Tax
Years 2-6 of ownership +£410/year
Electric cars +£410/year (from April 2025)

Historic Vehicles

Age Tax
40+ years old Free

MOT and Servicing

MOT Costs

Item Cost
MOT test (maximum fee) £55
MOT test (typical) £35-£50
Most common failures Lights, tyres, brakes, suspension

Service Costs

Service Type Cost Range
Interim service £100-£150
Full service £150-£300
Major service £250-£500
Dealer service £200-£500
Independent garage £100-£300

Common Maintenance Costs

Item Typical Cost
Brake pads (pair) £80-£150
Brake discs (pair) £100-£250
Tyres (each) £60-£150
Battery £70-£150
Clutch £400-£800
Timing belt £300-£600
Exhaust £150-£400
Windscreen £100-£300

Annual Maintenance Budget

Car Age Annual Budget
0-3 years £200-£400
3-5 years £400-£600
5-8 years £500-£800
8+ years £700-£1,200

Depreciation

Average Depreciation

Year Value Lost
Year 1 15-35%
Year 2 10-15%
Year 3 10-15%
Years 4-5 10% each
After 5 years 5-10%/year

Depreciation by Car Type

Car Value 3-Year Depreciation Annual Cost
£10,000 £4,000 £1,333
£20,000 £8,000 £2,667
£30,000 £13,000 £4,333
£40,000 £17,000 £5,667
£50,000 £22,000 £7,333

Cars That Hold Value

Category Examples 3-Year Retention
Best Porsche, Land Rover Defender 60-70%
Good Toyota, Honda, Mercedes 50-60%
Average Ford, VW, BMW 40-50%
Poor Some French/Korean brands 30-45%

Minimising Depreciation

Strategy Benefit
Buy 1-2 years old Someone else paid first-year drop
Buy used Much lower depreciation
Popular colours White, black, silver sell better
Low mileage Preserves value
Full service history Adds resale value

Parking and Tolls

Parking Costs

Type Typical Cost
On-street (city) £1-£4/hour
Car park (city) £2-£6/hour
Commuter parking £50-£250/month
Resident permit £50-£200/year
Airport (long stay) £50-£150/week

Congestion/Clean Air Zones

Zone Daily Charge
London Congestion £15
London ULEZ £12.50 (non-compliant)
Birmingham CAZ £8 (non-compliant)
Other cities £8-£12

Toll Roads

Route Cost
M6 Toll £7-£8 (car)
Dartford Crossing £2.50
Various bridges £1-£6

Electric Car Costs

EV Running Costs

Cost Annual
Electricity (home, 8k mi) £400-£600
Insurance £500-£900
Road tax £0 (until 2025: then £180)
Servicing £150-£300
Tyres £150-£250
Total £1,200-£2,050

Excludes depreciation and finance

EV vs Petrol Total Cost

Over 3 Years, 8,000 Miles/Year:

Cost Petrol (£25k car) EV (£32k car)
Fuel/electric £4,500 £1,500
Insurance £2,100 £2,400
Tax £540 £0
Maintenance £1,500 £900
Depreciation £10,000 £13,000
Total 3 years £18,640 £17,800

When EV Makes Sense

Mileage EV vs Petrol
Under 5,000 Petrol usually cheaper
5,000-10,000 Similar costs
10,000-15,000 EV starts winning
Over 15,000 EV much cheaper

Cost by Mileage

Total Annual Costs

Mileage Small Petrol Medium Petrol EV
5,000 £3,000 £4,000 £3,000
8,000 £3,600 £4,700 £3,250
10,000 £4,000 £5,200 £3,400
12,000 £4,400 £5,700 £3,550
15,000 £5,000 £6,500 £3,800
20,000 £6,000 £7,800 £4,200

Saving Money on Motoring

Biggest Savings

Strategy Annual Saving
Drive less £300-£1,000
Buy older car £1,000-£3,000 (depreciation)
Choose economical car £300-£700 (fuel)
Shop around for insurance £100-£400
Use supermarket fuel £50-£150
Eco driving £100-£300 (fuel efficiency)

Fuel Efficiency Tips

Tip Improvement
Correct tyre pressure 3-5%
Remove roof box 10-20%
Gentle acceleration 5-10%
Anticipate traffic 5-10%
Use cruise control 5-7%
Air con off when possible 5-10%

Alternatives to Car Ownership

Car Sharing/Club

Provider Cost
Zipcar £7-£20/hour
Enterprise Car Club £6-£15/hour
Co-wheels £5-£12/hour

Best if: You drive less than 6,000 miles/year

Cycling + Public Transport

Option Annual Cost
Good bike + maintenance £200-£500
Annual rail pass £500-£5,000
Bus pass £500-£1,500

Cost Comparison

Option Annual Cost
Own small car (8k miles) £3,500-£4,500
Car club + public transport £2,000-£4,000
Public transport only £1,500-£3,500
Cycle + occasional car hire £1,000-£2,500

Summary Cost Calculator

Quick Estimate Formula

Monthly running cost =

  • Fuel: (Miles/month ÷ MPG × 4.55) × fuel price
  • Insurance: Your quote ÷ 12
  • Tax: Annual rate ÷ 12
  • Maintenance: £40-£80
  • Depreciation: (Purchase price × 0.15) ÷ 12 (first year)

Example: Ford Focus 1.0 EcoBoost

Category Monthly Annual
Fuel (667 mi, 45 mpg) £101 £1,212
Insurance £58 £700
Tax £15 £180
MOT/service £38 £450
Tyres/repairs £33 £400
Depreciation £150 £1,800
Total £395 £4,742

Sources

  1. MoneyHelper — Everyday money