How much does it really cost to run a car in the UK each year? Most people think of fuel, but the bill is made up of several parts, and the biggest surprises are usually the ones you forget to count. In this guide we add them up step by step, show our working, and point you to the official sources for the figures that are fixed by law.
What counts as a running cost?
Running costs are what you pay to keep a car on the road and usable. They do not include the purchase price or finance repayments, and they leave out depreciation (how much value the car loses). Depreciation is often the biggest cost of all, but it is invisible until you sell, so we list it separately at the end.
The six costs to add up
- Fuel or charging. Depends on your mileage, the car and the price you pay. See our guides on cost per mile and electric versus petrol.
- Insurance. Varies a lot by driver, postcode and car. Use your own renewal quote.
- Car tax (VED). The standard rate for cars registered from April 2017 is £200 a year, with a different first-year rate. See car tax explained.
- MOT. The maximum a test station can charge for a car is £54.85. See MOT explained.
- Servicing and repairs. Often the least predictable part. Tyres, brakes and unexpected failures sit here.
- Parking and zone charges. Permits, car parks, tolls and, if you drive into one, a ULEZ or Clean Air Zone charge.
A worked example (illustrative, not an average)
The table below uses the default example in our free calculator. These are example figures we chose to show how the sum works. They are not a survey of what drivers pay, so replace them with your own numbers.
| Cost | Per month | Per year |
|---|---|---|
| Fuel | £130 | £1,560 |
| Insurance | £65 | £780 |
| Servicing | £30 | £360 |
| Repairs and tyres | £35 | £420 |
| Parking and zones | £15 | £180 |
| Car tax (VED) | £16.67 | £200 |
| Total | about £292 | about £3,500 |
The sums are simple: each monthly figure times 12, then added up. £1,560 + £780 + £360 + £420 + £180 + £200 = £3,500.
How does that compare with what is reported?
Industry reports such as the RAC’s Cost of Motoring have, as widely reported, put the typical cost of running a petrol or diesel car at roughly £3,000 to £3,800 a year before depreciation. We could not confirm the latest release directly, so treat that range as a rough guide and check the RAC for its current figure. Your own total can sit well outside it.
The cost nobody sees: depreciation
A car loses value every year, and for many cars this is bigger than any other cost. It does not show up in your monthly spending, so people leave it out. If you are choosing between two cars, compare how much each is likely to be worth after the years you plan to keep it, not only what each costs to run.
What we cannot tell you
Fuel prices, insurance premiums and repair costs change, and they vary by person. We have used examples where we have no official number, and we have said so each time.
Quick checklist
- Write down your last 12 months of fuel, insurance, servicing and parking.
- Add car tax (£200 standard rate) and MOT (maximum £54.85).
- Divide the total by 12 for your monthly figure, and by your annual miles for your cost per mile.
- Add zone charges if you drive into a charging zone.
- Remember depreciation when you compare cars.
Skip the arithmetic with our free UK car running cost calculator.
Sources
- GOV.UK: Vehicle tax rates (standard rate £200), checked on 22 October 2026
- GOV.UK: MOT costs (maximum £54.85 for a car)
- RAC Cost of Motoring report, as reported in the press (secondary source; check the RAC for the latest figure)