What does it really cost to own a car in the UK?
The number on the price tag is the beginning, not the end. Once you factor in depreciation, fuel or energy, insurance, road tax, servicing and MOT, most cars cost significantly more than their sticker price suggests.
This calculator adds everything up so you can make a genuinely informed decision — whether you’re choosing between petrol and electric, working out your monthly budget, or deciding how long to keep a car.
How we calculate it
Depreciation is calculated as a percentage of the purchase price over your ownership period. New cars typically lose 40–60% of value in the first 3 years. Electric cars vary widely by model.
Fuel / energy costs use UK Imperial MPG (1 UK gallon = 4.546 litres) for petrol and diesel. Electric costs are calculated from your home and public charging mix.
MOT costs are £0 for the first 3 years of a new car’s life, then £55 per test annually.
Road tax from April 2025: electric vehicles are now subject to VED at £195/year (first year rate varies by price). Most petrol/diesel cars pay £195/year from year 2.
Tips for reducing your car costs
- Buy at 2–3 years old — let someone else absorb the steepest depreciation
- Use Intelligent Octopus Go if you drive an EV — overnight charging at ~7p/kWh dramatically cuts fuel costs
- Compare insurance every year — loyalty rarely pays; switching saves an average of £300/year
- Service on time — skipping services accelerates wear and hurts resale value
- Consider GAP insurance if you’re financing — covers the difference between your car’s value and the outstanding finance if it’s written off
Reduce your car costs
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