What's the Average Cost of Running a Car in the UK?
UK car owners spend over £3,100 to run their cars each year. Besides the purchase price, the biggest expenses of car ownership are petrol or diesel (£904 a year), motor insurance (£470 a year), and repairs and servicing (£279 a year). In addition, road tax, parking fees & permits, driving lessons, car clubs, fines and other upkeep expenses cost an additional £279 a year per vehicle.
|Average Car Running Costs UK|
|Purchase/Depreciation per year^||£1,175|
|Petrol and Diesel||£904|
|Repairs and Servicing||£279|
|Motor vehicle road tax||£144|
|Parking fees, tolls and permits||£48|
|Garage rent, car washing, etc.||£35|
|Motoring organisation subscription (e.g., AA and RAC)||£30|
|Anti-freeze, battery water and cleaning materials||£4|
|Annual running costs for a car||£3,107|
Cost of Cars in the UK
To buy a car in the UK, you can spend anywhere from a few thousand pounds for a used car to tens of thousands of pounds on a new car, or more! The most popular cars in the UK cost in the region of £12,000 to £36,000 to buy new (starting on-the-road prices).
For example, the Ford Fiesta starts from around £18,000. Some cars cost a bit more, however, with the ever-popular VW Golf starting in the mid-£30,000s. Budget-conscious households can save by purchasing a gently-used car and staying away from the trend of buying more expensive cars.
Car Petrol Costs
Cost of Car Insurance
The average cost of car insurance in the UK is just under £500 a year. However, prices can vary significantly from person to person. Some of the factors that have the largest impact on the price you'll pay for car insurance are your age, the car you drive, your driving record, where you live and where you keep your car at night (e.g., on the road or in a locked garage). If price and customer service are both priorities for you, check out our list of the Top 10 Best-Rated Cheap Car Insurance Companies.
Car Service Costs
While the average amount spent to service and repair a car each year is £279, this amount can also be quite variable from year to year. For example, newer cars typically have fewer problems and are under warranty for the first few years, limiting the amount spent on service and repairs compared to older cars. Also, repair and service costs can be quite lumpy from year to year. For example, you'll spend more in a year when your car requires a major service (e.g., every 24 months or 20,000 miles) or if an expensive part breaks on your car.
To determine how much it costs to own a car in the UK, we analysed family spending data from the Office Office for National Statistics. First, we gathered car-related expenditures for a typical household, such as money spent on purchasing a car, car insurance, fuel, taxes, servicing, driving lessons and other car upkeep costs.
Since this data was per household, we had to convert it to a per car basis by dividing the cost data by the average number of cars per household. We calculate that the average number of cars per household is 1.19 (32,973,000 cars in the UK divided by 27.6 million households). From there, we were able to see how much people actually spend on their cars each year.