{"id":10745,"date":"2025-11-24T14:41:10","date_gmt":"2025-11-24T14:41:10","guid":{"rendered":"https:\/\/www.exchangemycar.co.uk\/blog\/?p=10745"},"modified":"2026-05-19T16:31:08","modified_gmt":"2026-05-19T15:31:08","slug":"cost-of-running-a-car-uk","status":"publish","type":"post","link":"https:\/\/www.exchangemycar.co.uk\/blog\/cost-of-running-a-car-uk\/","title":{"rendered":"Cost of Running a Car UK 2026: Petrol, Diesel &#038; EVs Costs"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The cost of running a car in the UK isn\u2019t cheap, as you have to fill up, book an MOT, and renew your <\/span><a href=\"https:\/\/www.exchangemycar.co.uk\/blog\/types-of-car-insurance\/\"><span style=\"font-weight: 400;\">car insurance<\/span><\/a><span style=\"font-weight: 400;\">. That said, keeping a car on the road needs real commitment. On average, it costs between \u00a33,500 and \u00a34,000 per year (approx. \u00a3300\/month) to run a typical petrol hatchback in the UK. This includes insurance (\u00a3735 avg), fuel (~\u00a31,200), VED, servicing, and depreciation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this guide, we break down every penny you\u2019ll spend and 5 ways that help to cut your running costs.<\/span><\/p>\n<h2 data-start=\"75\" data-end=\"124\">Key Takeaways: Cost of Running a Car in the UK<\/h2>\n<p>Fixed costs like depreciation, insurance, and tax dominate running a car, while fuel, servicing, and maintenance vary. EVs save with home charging, and careful planning reduces annual UK car costs.<\/p>\n<ul data-start=\"126\" data-end=\"1080\">\n<li data-start=\"126\" data-end=\"265\">\n<p data-start=\"128\" data-end=\"265\"><strong data-start=\"128\" data-end=\"156\">Fixed costs matter most:<\/strong> depreciation, insurance, and vehicle tax are unavoidable and make up a large portion of your annual spend.<\/p>\n<\/li>\n<li data-start=\"266\" data-end=\"410\">\n<p data-start=\"268\" data-end=\"410\"><strong data-start=\"268\" data-end=\"301\">Variable costs depend on you:<\/strong> Fuel or electricity, servicing, MOTs, and maintenance fluctuate with mileage, driving style, and car type.<\/p>\n<\/li>\n<li data-start=\"411\" data-end=\"561\">\n<p data-start=\"413\" data-end=\"561\"><strong data-start=\"413\" data-end=\"451\">Electric cars can be cheaper, but\u2026<\/strong> Home charging makes EVs cost-effective, while relying on public chargers can be more expensive than petrol.<\/p>\n<\/li>\n<li data-start=\"562\" data-end=\"691\">\n<p data-start=\"564\" data-end=\"691\"><strong data-start=\"564\" data-end=\"596\">Use simple formulas to plan:<\/strong> Calculate your annual cost or cost per mile to see the real numbers for your driving habits.<\/p>\n<\/li>\n<li data-start=\"692\" data-end=\"870\">\n<p data-start=\"694\" data-end=\"870\"><strong data-start=\"694\" data-end=\"723\">Smart choices save money:<\/strong> Driving efficiently, keeping up with maintenance, shopping for insurance early, and choosing the right car model can significantly reduce costs.<\/p>\n<\/li>\n<li data-start=\"871\" data-end=\"1080\">\n<p data-start=\"873\" data-end=\"1080\"><strong data-start=\"873\" data-end=\"898\">Budget realistically:<\/strong> For an average UK car, running costs are around \u00a33,500\u2013\u00a34,000 per year (~45\u201355p per mile), but your actual costs may be higher or lower depending on car type, location, and usage.<\/p>\n<\/li>\n<\/ul>\n<p><div class=\"row saq-cta_div\">\n      <div class=\"col-xl-12\">\n        <div class=\"bg-yellow exchange-deal-content\" style=\"padding: 5rem 3rem;\">\n          <div class=\"title\">\n            <h3 class=\"big mb-4\">\n              Is Your Current Car Costing You Too Much?\n            <\/h3>\n            <p class=\"h6 mb-0 fw-normal\">\n              If your current car has poor mileage or struggles with efficiency, it might be time to upgrade. Sell your old car quickly through Exchange My Car.\n            <\/p>\n\t\t\t\n          <\/div>\n         \t <form class=\"row g-4 g-sm-5 gy-5 get-quote-form\" style=\"margin-top:20px;\" action=\"https:\/\/www.exchangemycar.co.uk\/my-details\" method=\"post\" id=\"reg_form\" name=\"reg_form\">\n    <div class=\"col-6\">\n      <div class=\"position-relative\">\n        <div class=\"gb-icon-wrap small\">\n          <img src=\"https:\/\/www.exchangemycar.co.uk\/blog\/wp-content\/themes\/ssaq\/assets\/images\/icons\/gb.svg\" alt=\"GB\">\n        <\/div>\n        <input type=\"text\" name=\"reg_num\" required=\"\" class=\"form-control gb-icon saq-reg_field_color saq-milage-field\" placeholder=\"ENTER REG \" title=\"Please enter registration number\" maxlength=\"7\" value=\"\">\n      <\/div>\n    <\/div>\n    <div class=\"col-6\">\n          <input type=\"number\" class=\"form-control js-milage_commo saq-milage-field  saq-mileage_field_color\" name=\"mileage\" placeholder=\"MILEAGE\">\n    <\/div>\n    <div class=\"col-12\">\n      <button type=\"submit\" name=\"homesearch\" class=\"btn btn-big  saq-button-field btn-blue w-100\">Sell My Car<\/button>\n    <\/div>\n  <\/form>\n        <\/div>\n      <\/div>\n    <\/div><\/p>\n<h2><span style=\"font-weight: 400;\">Fixed Costs of Running a Car in the UK<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When you own a car, some costs don\u2019t change. These are your fixed costs, which account for a significant portion of your annual expenses. Understanding them helps you plan your budget effectively.\u00a0\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Depreciation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Depreciation is often ignored because no physical money leaves your bank account each month until you <\/span><a href=\"https:\/\/www.exchangemycar.co.uk\/sell-my-car\"><span style=\"font-weight: 400;\">sell your car<\/span><\/a><span style=\"font-weight: 400;\">. It is the single biggest cost of motoring.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The reality is that a new car typically loses 15% to 20% of its value in the first year, then steadily each year after. For example, a \u00a320,000 car could be worth only \u00a314,000 after one year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, depreciation slows down significantly after year three. Buying a 3-year-old car means the previous owner has paid for the steepest drop in value.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a 2026 trend, Electric vehicles (EVs) have seen steeper depreciation recently due to market fluctuations and battery tech updates, while small, efficient petrol cars, like the <\/span><a href=\"https:\/\/www.exchangemycar.co.uk\/blog\/how-to-turn-off-speed-warning-on-toyota-aygo-x\/\"><span style=\"font-weight: 400;\">Toyota Aygo<\/span><\/a><span style=\"font-weight: 400;\"> or Dacia Sandero, are holding value exceptionally well.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Car Insurance Costs<\/span><\/h3>\n<p><img src=\"https:\/\/www.exchangemycar.co.uk\/assets\/empty.png\" data-original=\"https:\/\/www.exchangemycar.co.uk\/timthumb.php?src=https%3A%2F%2Fwww.exchangemycar.co.uk%2Fblog%2Fwp-content%2Fuploads%2F2025%2F04%2FPay-insurance.jpg&w=777&h=485\" class=\"img-fluid img-inherit img-cover lazy\" alt=\"Paying insurance - cost of running a car UK\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Car insurance is one of the biggest fixed costs. After a turbulent 2024, insurance prices are stabilising, but they remain a major burden. As of now, the average premium for experienced drivers is approximately \u00a3600 &#8211; \u00a3800 per year. However, for <\/span><a href=\"https:\/\/www.exchangemycar.co.uk\/blog\/best-cars-for-new-drivers\/\"><span style=\"font-weight: 400;\">young new drivers<\/span><\/a><span style=\"font-weight: 400;\">, insurance costs range between \u00a31,600 &#8211; \u00a32,200+\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Vehicle Tax (VED)<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">After the April 2025 update, the road tax rules have changed. If you drive an electric car, the &#8220;free road tax&#8221; era ends in April 2025. Here is what you should know about road tax:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Vehicle Type\u00a0 \u00a0 \u00a0 \u00a0<\/b><\/td>\n<td><b>Registered Date<\/b><\/td>\n<td><b>2025\/26 Annual Tax Rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Petrol\/Diesel<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Registered post-April 2017<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3195 flat rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Electric (EV)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Any registered date<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3195 (Standard rate)<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/www.exchangemycar.co.uk\/blog\/how-to-sell-a-luxury-car\/\"><span style=\"font-weight: 400;\">Luxury Cars<\/span><\/a><\/td>\n<td><span style=\"font-weight: 400;\">List price over \u00a340k<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3620 (\u00a3195 + \u00a3425 supplement)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-weight: 400;\">Variable Costs of Running a Car in the UK<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While fixed costs stay the same regardless of how much you drive, variable costs change based on your <\/span><a href=\"https:\/\/www.exchangemycar.co.uk\/blog\/how-much-does-mileage-affect-car-value\/\"><span style=\"font-weight: 400;\">mileage<\/span><\/a><span style=\"font-weight: 400;\">, driving style and the type of car.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Fuel\/Energy<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Fuel prices have stabilised around <\/span>135p-145p per litre<span style=\"font-weight: 400;\"> for petrol and slightly higher for diesel. However, the gap between &#8220;home charging&#8221; and &#8220;public charging&#8221; for EVs is now massive.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Petrol Car (45mpg):<\/b><span style=\"font-weight: 400;\"> Costs approx. 16p &#8211; 18p per mile.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Electric Car (Home Charging):<\/b><span style=\"font-weight: 400;\"> Costs approx. 2p &#8211; 5p per mile (on an off-peak EV tariff).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Electric Car (Public Rapid Charging):<\/b><span style=\"font-weight: 400;\"> Costs approx. 15p &#8211; 20p per mile (often more expensive than petrol).<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Servicing, MOT and Maintenance<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Cars need regular attention to stay safe and reliable. These are variable costs because they depend on your car\u2019s age, condition, and mileage:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>MOT:<\/b><span style=\"font-weight: 400;\"> Capped at <\/span>\u00a354.85<span style=\"font-weight: 400;\"> (no VAT). You need this annually once your car is 3 years old.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Servicing:<\/b><span style=\"font-weight: 400;\"> Expect to pay <\/span>\u00a3180 &#8211; \u00a3260<span style=\"font-weight: 400;\"> for a full service on a standard hatchback.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Maintenance Fund:<\/b><span style=\"font-weight: 400;\"> As cars age, parts fail. If your car is over 5 years old, we recommend setting aside <\/span>\u00a330 &#8211; \u00a350 per month<span style=\"font-weight: 400;\"> for tyres, <\/span><a href=\"https:\/\/www.exchangemycar.co.uk\/blog\/brake-pad-replacement\/\"><span style=\"font-weight: 400;\">brake pads<\/span><\/a><span style=\"font-weight: 400;\">, and unexpected repairs.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Cost Comparison: Petrol vs Diesel vs Electric Cars<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Not all cars are the same to run. It depends on your choice of fuel type, like petrol, diesel and electric. Each makes a big difference in your annual costs. Here is the comparison table for better understanding whether <a href=\"https:\/\/www.exchangemycar.co.uk\/blog\/should-you-buy-an-electric-car\/\">you should consider buying an electric car<\/a> in 2025 or not.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Cost Category<\/b><\/td>\n<td><b>Petrol Hatchback (e.g. Ford Focus)<\/b><\/td>\n<td><b>Electric Hatchback (e.g. VW ID.3)<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Fuel \/ Energy<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a31,280 (at 45mpg)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3320 (Home charging) \/ \u00a31,600 (Public only)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax (VED)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3195<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3195 (New April 2025 Rate)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Insurance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3650<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3850 (EVs currently higher to insure)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Servicing<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3220<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3150 (Less moving parts)<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Total Annual<\/b><\/td>\n<td><span style=\"font-weight: 400;\">\u00a32,345<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a31,515 (Home charge) \/ \u00a32,795 (Public charge)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Verdict:<\/b><span style=\"font-weight: 400;\"> An EV is the cheapest option by far, only if you have a driveway. If you rely entirely on public chargers, a petrol hybrid is often cheaper to run.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How to Calculate Your Own Car Running Costs (Step-by-Step)<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Knowing the exact cost of running your car helps you plan your budget realistically. Here\u2019s a simple way to calculate it.<\/span><\/p>\n<h3>Simple Formula for Annual Cost<\/h3>\n<p><span style=\"font-weight: 400;\">(Fuel Cost x Miles) + Insurance + Tax + Servicing + Finance Payments = Total Annual Cost<\/span><\/p>\n<h3>Formula for Cost Per Mile<\/h3>\n<p><span style=\"font-weight: 400;\">This figure is useful for deciding if a specific journey is worth driving.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Total Annual Cost \u00f7 Annual Mileage = Cost Per Mile<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Example: If you spend \u00a33,500 a year and drive 7,000 miles, every single mile costs you 50p. That 10-mile round trip to the shops just cost you \u00a35.00.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How to Cut Your Running Costs<\/span><\/h2>\n<p>Here is how you can cut the running costs of a car.<\/p>\n<p><b>1. The &#8220;Pre-2017&#8221; Tax Trick:<\/b><span style=\"font-weight: 400;\"> Buying a low-emission petrol car registered between 2001 and March 2017 often results in road tax of just \u00a30, \u00a320, or \u00a335 per year.<\/span><\/p>\n<p><b>2. Service Plans:<\/b><span style=\"font-weight: 400;\"> Main dealers often offer monthly service plans (e.g., \u00a320\/month) that are inflation-proof. These are excellent values in 2025 as labour rates rise.<\/span><\/p>\n<p><b>3. Tyre Choice:<\/b><span style=\"font-weight: 400;\"> Don&#8217;t buy &#8220;budget&#8221; ditch-finder tyres. Premium tyres last longer and improve fuel economy. Mid-range brands (like Kumho or Falken) offer the best cost-per-mile balance.<\/span><\/p>\n<p><b>4. Shop Insurance 21 Days Early:<\/b><span style=\"font-weight: 400;\"> MoneySavingExpert data suggests the &#8220;sweet spot&#8221; for renewal quotes is 3 to 4 weeks before your policy expires. Never auto-renew.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Frequently Asked Questions<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">Is it cheaper to run an electric car in 2026?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It depends on where you charge. If you have a home wallbox and a smart energy tariff (charging at ~7p\/kWh), it is roughly 70% cheaper to fuel than a petrol car. However, if you rely on motorway rapid chargers, it can actually be more expensive than petrol.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What is the average cost per mile in the UK?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">For a typical family car, the &#8220;all-in&#8221; cost (including depreciation) is usually between 45p and 55p per mile. If you only count fuel, it is around 15p-18p per mile.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">How much should I budget for car maintenance?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">For a car under warranty, less than 3 years old, budget for one service a year is \u00a3200. For cars aged 5-10 years, budget roughly \u00a3500-\u00a3700 per year to cover the service, <\/span><a href=\"https:\/\/www.gov.uk\/check-mot-history\"><span style=\"font-weight: 400;\">MOT<\/span><\/a><span style=\"font-weight: 400;\">, tyres, and typical wear-and-tear items like brakes or suspension bushes.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">How much is the average insurance for a new driver?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In 2026, new drivers are facing average premiums of \u00a31,600 to \u00a32,200. Adding an experienced named driver (like a parent) to the policy can sometimes reduce this significantly.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What are the cheapest cars to run in the UK?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The cheapest cars to run in the UK are the Toyota Aygo \/ Aygo X, the Kia Picanto, or the Dacia Sandero. They have low insurance groups, high MPG, and tyres that are cheap to replace.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Conclusion: Cost of Running a Car UK<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Understanding the cost of running a car in the UK helps you plan your budget and avoid surprises. Fixed costs like insurance, tax, and depreciation are unavoidable, while variable costs such as fuel, servicing, and maintenance depend on how and where you drive.<\/span><\/p>\n<div style=\"all: initial !important;\"><\/div>\n<div style=\"all: initial !important;\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The cost of running a car in the UK isn\u2019t cheap, as you have to fill up, book an MOT, and renew your car insurance. That said, keeping a car on the road needs real commitment. On average, it costs between \u00a33,500 and \u00a34,000 per year (approx. \u00a3300\/month) to run a typical petrol hatchback in [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":7465,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[1],"tags":[1807,1806,1808],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/posts\/10745"}],"collection":[{"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=10745"}],"version-history":[{"count":13,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/posts\/10745\/revisions"}],"predecessor-version":[{"id":11953,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/posts\/10745\/revisions\/11953"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/media\/7465"}],"wp:attachment":[{"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=10745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=10745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.exchangemycar.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=10745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}