The True Cost of Owning a Used Car in the UK
The sticker price is just the start. Depreciation, fuel, servicing and insurance can add 40–80% on top of what you paid - over a 3-year ownership period. This guide breaks down every cost category and lets you calculate your total for any car.
True Cost
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Depreciation, fuel, servicing and insurance — everything that makes a car cost more than its sticker price.
UK average estimates. Actual costs vary by make, model and usage.
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The four costs that matter
1. Depreciation - the biggest cost nobody talks about
Depreciation is the money you lose between buying and selling a car. On a typical used car it accounts for 50–65% of total ownership cost. The depreciation curve is steepest in the first three years (new cars lose 15–35% per year), then flattens dramatically - which is exactly why buying a 3–5 year old used car is so financially efficient. You let someone else absorb the steepest drop.
On a £15,000 car held for three years, depreciation alone typically costs £4,500–£6,000. On a £30,000 car, it's £9,000–£15,000. This is the number most buyers never calculate.
2. Fuel - underestimated at purchase, unavoidable in use
At current UK pump prices, a petrol car averaging 40 MPG and doing 9,000 miles costs around £1,100–£1,300 per year in fuel. A diesel at 55 MPG is around £950–£1,100. A hybrid at 60 MPG combined drops to £800–£1,000. Over three years, the difference between an inefficient and an efficient car is often £1,500–£3,000 in fuel alone.
3. Servicing and maintenance
Annual servicing for a typical used petrol car costs £300–£600 depending on make and service interval. German premium brands (BMW, Mercedes, Audi) often run £600–£1,200 at independent garages. Tyres add £200–£400 every 20,000–30,000 miles. Brakes, batteries, and unexpected repairs are additional. Electric cars are cheaper: no oil changes, less brake wear, simpler drivetrain - typical EV servicing is £150–£300/year.
4. Insurance and tax
Insurance is highly individual - varies by driver age, location, car group, and no claims bonus. The calculator uses a rough estimate of 3% of purchase price annually, which is broadly accurate for a mid-range car and an experienced driver. Road tax (VED) ranges from £0 for low-emission cars to £615+/year for high-CO₂ vehicles. Electric cars pay £0 VED until April 2025, then a flat rate.
Watch out for cheap-looking cars with expensive maintenance. A German executive car at £8,000 might look affordable, but if servicing costs £900/year and parts are expensive, the true cost over 3 years can exceed a more sensible £12,000 Japanese alternative. Always calculate total cost of ownership, not just purchase price.
Check whether the purchase price is fair first
Before calculating ownership costs, make sure you're not paying over the odds for the car itself.
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