← Back to AutoAlpha
Pillar guide

The real cost of running a car in the UK

The sticker price is half the story. Fuel, insurance, tax, servicing, depreciation and finance interest all add up — typically £2,500-£5,000 a year on top of the purchase. This guide breaks down every part with free calculators.

SB Written by Salah Baaziz · Updated

What does it cost to run a typical UK car?

For a roughly average car in the UK (5-year-old hatchback, 12,000 miles/year, single named driver, 30-year-old), here's what the actual annual bill looks like:

Cost lineTypical UK annual (2026)
Depreciation (silent killer)£1,200 – £2,500
Fuel (12,000 mi/yr @ 48 mpg)£1,600 – £2,000
Insurance£500 – £1,400
Road tax (VED)£20 – £200
Servicing & MOT£200 – £450
Tyres & wear items£100 – £400
Finance interest (if applicable)£600 – £1,800
Total annual£4,220 – £8,750

The wide range is real — the difference between a £4k Yaris and a £20k Range Rover is roughly that. Use the calculators below to plug in your numbers.

Free calculators

All-in

True cost of car ownership calculator

The headline number for any car. Plug in price, mileage, fuel type and insurance band — get the full 3-year ownership cost including depreciation. Free, no signup.

Finance

PCP finance calculator UK

Real monthly payment, total cost, and balloon figure for any PCP deal. Compare with HP and cash buy. The free tool UKPF redditors actually use.

Fuel

UK car fuel cost calculator

Real-world MPG, fuel-type-specific costs, and your annual fuel bill for any mileage and car. Updated weekly with live UK pump prices.

What people forget to budget for

The headline running-cost figures everyone quotes miss several things. Hidden costs of buying a used car in the UK walks through them in detail: VAT on dealer cars, document fees, first MOT after purchase, first service after purchase, prep costs, finance arrangement fees, and the most expensive one — mismatched insurance assumptions.

Going deeper: finance vs cash

If you're deciding between PCP, HP, lease and cash, the right answer depends on your APR, your savings rate, and how long you'll keep the car. Used vs new car UK covers the lease-vs-buy maths in detail, with worked examples.

How depreciation eats your budget

Depreciation is the biggest single line on most cars and it's silent — you only feel it when you sell. UK used car depreciation explained shows which models hold their value best and which to avoid if you want to minimise this cost.