The cost of owning a car: what should you expect to pay?

Owning a used car comes with more than just the initial purchase price. While costs like fuel and insurance are expected, there are plenty of other expenses that can arise throughout the year. Understanding what these are can help you prepare for car ownership and avoid unexpected surprises.

Fuel or charging costs ⛽

One of the biggest ongoing costs of owning a car is keeping it on the road.

If you drive a petrol or diesel car, how much you spend on fuel will depend on:

• How often you drive 
• The distance you travel 
• Your vehicle's fuel economy 
• Current fuel prices

If you own an electric vehicle (EV), you'll need to factor in charging costs instead. Charging at home is often cheaper than using public charging points, although the cost will depend on your electricity tariff.

Driving smoothly, avoiding unnecessary acceleration, and keeping your tyres correctly inflated can all help improve efficiency and reduce your running costs.

Car insurance 📄

Car insurance is a legal requirement if you drive on UK roads, and it's likely to be one of your biggest annual expenses.

The amount you pay depends on factors such as:

• Your age and how long you've driven for 
• Where you live 
• The type of car you drive 
• How you use your vehicle 
• Your claims history

Insurance premiums can change annually, so shopping around before your renewal date and comparing quotes could help you find a better deal.

Vehicle tax 🚗

Most drivers will need to pay Vehicle Excise Duty (VED), more commonly known as road tax.

The amount you pay depends on your vehicle, taking into consideration when it was first registered and its emissions. Before buying a used car, it's worth checking how much tax you'll need to pay each year so you can include it in your budget.

MOT tests ✅

Once a car is more than three years old, it usually needs an MOT every year.

The MOT checks that your vehicle meets the minimum legal safety and environmental standards. While the test itself has a maximum fee, you may also need to budget for any repairs if your car doesn't pass.

Regular maintenance throughout the year can help reduce the chances of unexpected repair bills when it comes round to your MOT test.

Servicing 🧑‍🔧

Routine servicing helps keep your car running efficiently and safely. 

Depending on your vehicle and mileage, you may need an interim service every six months or a full service once a year.

Although servicing is an additional cost, it can often save money by identifying small issues before they become expensive repairs.

Repairs and replacement parts 🔧

Even well-maintained used cars may need occasional repairs. Some common costs include:

• Brake pads and discs
• Tyres
• Car batteries
• Suspension components
• Windscreen wipers
• Light bulbs

Exactly when these parts need replacing will depend on your vehicle, its age, how much mileage it's done, and your driving style.

Costs that might catch you out

Some car ownership costs are less obvious but can still have an impact over time, including:

• Breakdown cover 
• Windscreen chip or crack repairs 
• Replacement keys 
• Parking permits 
• Toll roads and congestion charges 
• Car washes and valeting

While you may not pay for these regularly, they're worth being aware of as they can all contribute to the overall cost of owning a car.

How can you reduce the cost of owning a used car?

While some costs are unavoidable, there are plenty of ways to keep your running costs down, including:

• Driving smoothly to improve fuel efficiency 
• Comparing insurance quotes each year 
• Keeping up with regular servicing 
• Fixing small problems before they become bigger ones
• Budgeting a small amount each month for maintenance and repairs

 

While the costs will vary from driver to driver, knowing what to expect can help you stay prepared and avoid any unexpected surprises. Whether you're buying your first car or replacing your current one, understanding the true cost of ownership means you'll be better prepared for the road ahead.