The True Cost of Running a Car in the UK (2026)
Most UK drivers underestimate what their car really costs by 40–50%. This study adds up every line — depreciation, fuel, insurance, tax, servicing, MOT and parking — for petrol, diesel, hybrid and electric cars at average UK mileage.
A typical UK petrol car costs
£4,400
per year to run in 2026 — about £367 a month — at average UK mileage (7,400 miles), before any finance payments. London drivers typically pay over £5,950 a year.
Why most drivers get this wrong
Fuel and insurance show up on your bank statement every month, so they feel like the real cost of a car. They're not. Depreciation — the value your car silently loses while it sits on the drive — is usually the single biggest line, and you only notice it when you come to sell. Combined with road tax, servicing, MOT and parking, the true cost of ownership is typically £1,500–£2,000 a year higher than drivers estimate.
Annual cost by fuel type, 2026
Typical mid-size UK car, 3–5 years old, 7,400 miles/year. All figures in £ per year unless stated.
| Cost | Petrol | Diesel | Hybrid | Electric |
|---|---|---|---|---|
| Depreciation | £1,800 | £1,700 | £2,100 | £2,500 |
| Fuel / electricity | £1,015 | £957 | £795 | £180 |
| Insurance | £850 | £950 | £900 | £1,000 |
| Road tax (VED) | £200 | £200 | £200 | £200 |
| Servicing | £280 | £320 | £300 | £180 |
| MOT | £55 | £55 | £55 | £55 |
| Parking & permits | £200 | £200 | £200 | £200 |
| Total per year | £4,400 | £4,382 | £4,550 | £4,315 |
| Total per month | £367 | £365 | £379 | £360 |
Estimate your own car costs
Enter your own figures to compare an ownership budget. Vehicle tax uses the original list price, first registration date and licence year, or your actual DVLA bill. Other running costs and depreciation are planning assumptions.
Your Car
Road tax details — 2026/27 rates
A used-car purchase price does not determine the supplement. Count licence years from first registration; £440 applies in years 2–6 above £40,000 (qualifying zero-emission cars: £50,000). The estimate assumes RDE2 diesel, excludes exemptions and holds this year's annual bill constant in ownership projections. Use DVLA's bill for other cases.
Check road tax and registration rules →UK average: £500-£900 depending on age and area
Finance
Isolate your commute cost
Monthly parking cost
Side-by-side EV comparison
Your Total Cost of Ownership
£5,782/year
That's £482 per month or 72.3p per mile
Equivalent to £16 for every day you own it
Annual
£5,782
Monthly
£482
Per Mile
72.3p
5-Year Total
£28,912
Where Your Money Goes
Depreciation£3,250/yr
Your car loses approximately £3,250 in value each year — typically the single biggest cost of ownership.
Fuel Costs£1,227/yr
Annual
£1,227
Monthly
£102
Per Mile
15.3p
Based on 8,000 miles/year at 40 MPG (petrol).
Calculate fuel cost for a journeyRoad Tax (VED)£455/yr
Annual
£455
Monthly
£38
Insurance£500/yr
Your estimate: £500/year (£42/month).
UK average by age: 17-24: £1,200 • 25-34: £700 • 35-49: £500 • 50+: £400
Company Car Alternative
If this were a company car, you'd pay £113/month in BIK tax (basic rate).
Personal ownership
£482/mo
Company car BIK
£113/mo
BIK rate: 27% of £25,000 = £6,750 taxable benefit
Full company car tax calculatorLeasing Alternative
A comparable lease would cost approximately £465/month — compare this to your total monthly ownership cost of £482.
Owning (total)
£482/mo
Leasing (est.)
£465/mo
Leasing is cheaper by £5,268 over the comparison period.
Full lease vs buy comparisonMaintenance & Servicing£350/yr
Estimated at £350/year based on a 0-year-old petrol car. Newer cars have lower maintenance costs but still need servicing.
Includes: annual service, MOT, tyres, brakes, and contingency for repairs.
Detailed ownership breakdownWhere you live changes the answer
Total annual cost for a typical petrol car, by region. Differences are driven mostly by insurance premiums, parking permits and clean-air-zone charges.
| Region | Per year | Per month |
|---|---|---|
| London (Zone 2) | £5,950 | £496 |
| Manchester | £4,580 | £382 |
| Birmingham | £4,520 | £377 |
| Rural Scotland | £4,150 | £346 |
How we calculated this
- Vehicle: mid-size UK car (e.g. Ford Focus / VW Golf class), 3–5 years old, bought used.
- Mileage: 7,400 miles/year — the latest DfT national average for private cars.
- Fuel: petrol 142.0p/L at 47 MPG, diesel 148.0p/L at 52 MPG, hybrid blended 60 MPG. EV at 3.5 mi/kWh on a home EV tariff (~8.5p/kWh).
- Depreciation: straight-line estimate based on typical 3-year residual values from cap hpi / Auto Trader retail price index.
- Insurance: ABI average comprehensive premium (Q1 2026), adjusted by fuel type.
- VED in the comparison table: 2026/27 standard rate of £200/year, including EVs (which started paying VED in April 2025). No expensive car supplement is included — that £440/year charge (years 2–6) only applies to cars whose original list price when new was over £40,000 (£50,000 for qualifying zero-emission registrations from 1 April 2025). The interactive calculator uses your separate original list price, registration date and licence year, or your actual DVLA amount.
- Servicing & MOT: indicative independent-garage pricing; EVs assume no cambelt or oil service.
- Excluded: finance/PCP interest, tyres beyond servicing, congestion/ULEZ charges, depreciation on accessories.
- Primary sources: RAC Cost of Motoring Index, AA Motoring Costs, gov.uk VED rate tables, and ABI Motor Insurance Premium Tracker.
Last updated: 9 June 2026
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