How Much Does It Cost to Run a Car in the UK?

Most drivers know what they spend on fuel, but not what the car costs in total. Adding it all up helps you decide whether to keep the car, change it, or cut costs. Here is how.

The main costs

1. Fuel or charging. The biggest running cost for many drivers.
2. Car tax (VED). For most cars registered after April 2017, the standard rate for 2026/27 is £200 a year, or about £210 if you pay by monthly Direct Debit. See car tax explained.
3. Insurance. Varies a great deal with your age, address, car and history. Use your own quote.
4. MOT. Needed once the car is three years old. The maximum fee a test station can charge for a car is £54.85, and many charge less. See MOT explained.
5. Servicing and repairs. Allow for a regular service and some unexpected repairs. Older cars cost more to repair.
6. Tyres. A set lasts several years for many drivers, but replacing them is a large one-off cost. See tyre tread depth and the 20p test.
7. Breakdown cover. Optional but common. See do you need breakdown cover?
8. Parking, tolls and charges. Easy to forget. See hidden motoring costs.
9. Depreciation. The loss in value each year. It is not a bill you pay, but it is often the largest cost of owning a newer car.

A worked fuel example

Take a 40 mpg petrol car driven 8,000 miles a year. Using the average E10 price in our database on 6 November 2026, 169.56p a litre:

• Cost per mile = 169.56 × 4.546 ÷ 40 = about 19.3p
• Fuel for the year = about £1,540

For the sums behind this, see how to work out your real mpg and cost per mile: petrol vs diesel. Your own price will differ, so check prices near you.

How to add it up

Make a simple list with each cost and the annual amount:

Divide the total by your annual miles to get a cost per mile, and by 12 to get a monthly cost.

What to do with the number

• Compare with alternatives, such as a smaller car, a hybrid, or using a car club or public transport for some trips.
• Find the biggest cost and look for savings there. For many drivers, that is depreciation, insurance or fuel.
• Cut fuel use. See 12 ways to cut your fuel bill.

Fixed figures such as the car tax rate and the MOT maximum fee were correct when we checked in November 2026. Rates change, so check the current figures on GOV.UK.