How much does it cost to run a car per month UK 2026?

The average cost to run a car in the UK is £300-£500 per month, excluding purchase/finance. This breaks down to: fuel £100-£200, insurance £50-£100, road tax £15-£20, maintenance £40-£80, and depreciation £80-£150. Total annual cost is typically £4,000-£6,000.

What is the cheapest car to run UK?

The cheapest cars to run are typically small petrol hatchbacks like Dacia Sandero, Toyota Aygo, or Hyundai i10. Electric cars have the lowest running costs for high-mileage drivers despite higher purchase prices. Small cars cost around £3,000-£4,000/year to run vs £5,000-£7,000 for larger cars.

How much should I budget for car insurance UK?

Average car insurance costs £600-£900/year for a typical driver. Young drivers (17-25) pay much more at £1,500-£3,000. Factors affecting price include age, location, vehicle, driving history, and mileage. Telematics (black box) policies can save young drivers 20-40%.

Is an electric car cheaper to run than petrol UK?

Electric cars are 2-3× cheaper to run per mile than petrol. Electricity costs around 4-7p/mile vs 13-18p/mile for petrol. However, EVs have higher purchase prices and battery depreciation. EVs save most money for high-mileage drivers (10,000+ miles/year).

How Much Does It Cost to Run a Car UK 2026 — Complete Breakdown | PocketWise

Understanding the true cost of running a car helps you budget effectively and choose the right vehicle. Here’s a complete breakdown of UK motoring costs.

Total Running Costs Overview

Average Annual Costs by Car Type

Car Type	Fuel	Insurance	Tax	Maintenance	Depreciation	Total/Year
Small petrol (Fiesta)	£1,200	£600	£180	£400	£1,200	£3,580
Medium petrol (Focus)	£1,500	£700	£180	£500	£1,800	£4,680
Large petrol (Mondeo)	£1,800	£800	£180	£600	£2,200	£5,580
Small EV (Zoe)	£400	£550	£0	£300	£2,000	£3,250
Medium EV (Model 3)	£500	£900	£0	£350	£3,500	£5,250
SUV petrol	£2,200	£850	£180	£700	£3,000	£6,930
SUV diesel	£1,800	£850	£180	£700	£2,800	£6,330

Based on 8,000 miles/year

Monthly Running Costs

Cost Category	Low	Average	High
Fuel/electricity	£80	£130	£200
Insurance	£40	£70	£200
Road tax	£0	£15	£50
MOT	£5	£5	£5
Servicing	£25	£40	£80
Repairs/tyres	£30	£50	£100
Depreciation	£80	£150	£300
Total	£260	£460	£935

Fuel Costs

Fuel Prices (2026 Estimates)

Fuel Type	Price/Litre
Unleaded petrol	£1.45-£1.55
Super unleaded	£1.55-£1.65
Diesel	£1.50-£1.60
LPG	£0.70-£0.80

Cost Per Mile

Car Type	MPG	Cost/Mile
Small petrol (50 mpg)	50	13p
Medium petrol (40 mpg)	40	16p
Large petrol (30 mpg)	30	21p
Small diesel (60 mpg)	60	11p
SUV diesel (35 mpg)	35	19p
Hybrid (55 mpg)	55	12p
Electric (3.5 mi/kWh)	N/A	6-9p

Annual Fuel Costs by Mileage

Based on 45 mpg petrol car at £1.50/litre:

Miles/Year	Litres	Annual Cost	Monthly
5,000	505	£758	£63
8,000	808	£1,212	£101
10,000	1,010	£1,515	£126
12,000	1,212	£1,818	£152
15,000	1,515	£2,273	£189
20,000	2,020	£3,030	£253

Electric vs Petrol Running

Fuel Type	Cost/Mile	8,000 Miles	12,000 Miles
Petrol (40 mpg)	16p	£1,280	£1,920
Electric (home charging)	6p	£480	£720
Electric (public charging)	12p	£960	£1,440
Savings (home)	-	£800	£1,200

Insurance

Average Premiums by Age

Age Group	Average Annual Premium
17-20	£2,000-£3,500
21-25	£1,200-£2,000
26-30	£700-£1,100
31-40	£550-£800
41-50	£500-£700
51-60	£450-£650
61-70	£400-£600
70+	£450-£700

Factors Affecting Insurance

Factor	Impact
Age	Younger = more expensive
Location	Urban/high crime = more
Vehicle	Larger/faster = more
Mileage	More miles = more
Claims history	Claims increase premium
Job	Some professions higher
Years driving	More experience = less

Ways to Reduce Insurance

Strategy	Potential Saving
Compare quotes	£100-£400
Increase excess	10-20%
Black box (telematics)	20-40%
Add experienced driver	5-15%
Reduce mileage	5-15%
Pay annually	10-15%
Build no claims	30-65% over time
Secure parking	5-10%

Road Tax (VED)

Standard Rates 2026/27

CO2 Emissions	First Year	Standard Rate
0 g/km (electric)	£0	£0
1-50 g/km	£10	£180
51-75 g/km	£30	£180
76-90 g/km	£135	£180
91-100 g/km	£175	£180
101-110 g/km	£195	£180
111-130 g/km	£220	£180
131-150 g/km	£270	£180
151-170 g/km	£680	£180
171-190 g/km	£1,095	£180
191-225 g/km	£1,650	£180
226-255 g/km	£2,340	£180
Over 255 g/km	£2,745	£180

Premium Supplement

If Car Cost Over £40,000	Extra Tax
Years 2-6 of ownership	+£410/year
Electric cars	+£410/year (from April 2025)

Historic Vehicles

Age	Tax
40+ years old	Free

MOT and Servicing

MOT Costs

Item	Cost
MOT test (maximum fee)	£55
MOT test (typical)	£35-£50
Most common failures	Lights, tyres, brakes, suspension

Service Costs

Service Type	Cost Range
Interim service	£100-£150
Full service	£150-£300
Major service	£250-£500
Dealer service	£200-£500
Independent garage	£100-£300

Common Maintenance Costs

Item	Typical Cost
Brake pads (pair)	£80-£150
Brake discs (pair)	£100-£250
Tyres (each)	£60-£150
Battery	£70-£150
Clutch	£400-£800
Timing belt	£300-£600
Exhaust	£150-£400
Windscreen	£100-£300

Annual Maintenance Budget

Car Age	Annual Budget
0-3 years	£200-£400
3-5 years	£400-£600
5-8 years	£500-£800
8+ years	£700-£1,200

Depreciation

Average Depreciation

Year	Value Lost
Year 1	15-35%
Year 2	10-15%
Year 3	10-15%
Years 4-5	10% each
After 5 years	5-10%/year

Depreciation by Car Type

Car Value	3-Year Depreciation	Annual Cost
£10,000	£4,000	£1,333
£20,000	£8,000	£2,667
£30,000	£13,000	£4,333
£40,000	£17,000	£5,667
£50,000	£22,000	£7,333

Cars That Hold Value

Category	Examples	3-Year Retention
Best	Porsche, Land Rover Defender	60-70%
Good	Toyota, Honda, Mercedes	50-60%
Average	Ford, VW, BMW	40-50%
Poor	Some French/Korean brands	30-45%

Minimising Depreciation

Strategy	Benefit
Buy 1-2 years old	Someone else paid first-year drop
Buy used	Much lower depreciation
Popular colours	White, black, silver sell better
Low mileage	Preserves value
Full service history	Adds resale value

Parking and Tolls

Parking Costs

Type	Typical Cost
On-street (city)	£1-£4/hour
Car park (city)	£2-£6/hour
Commuter parking	£50-£250/month
Resident permit	£50-£200/year
Airport (long stay)	£50-£150/week

Congestion/Clean Air Zones

Zone	Daily Charge
London Congestion	£15
London ULEZ	£12.50 (non-compliant)
Birmingham CAZ	£8 (non-compliant)
Other cities	£8-£12

Toll Roads

Route	Cost
M6 Toll	£7-£8 (car)
Dartford Crossing	£2.50
Various bridges	£1-£6

Electric Car Costs

EV Running Costs

Cost	Annual
Electricity (home, 8k mi)	£400-£600
Insurance	£500-£900
Road tax	£0 (until 2025: then £180)
Servicing	£150-£300
Tyres	£150-£250
Total	£1,200-£2,050

Excludes depreciation and finance

EV vs Petrol Total Cost

Over 3 Years, 8,000 Miles/Year:

Cost	Petrol (£25k car)	EV (£32k car)
Fuel/electric	£4,500	£1,500
Insurance	£2,100	£2,400
Tax	£540	£0
Maintenance	£1,500	£900
Depreciation	£10,000	£13,000
Total 3 years	£18,640	£17,800

When EV Makes Sense

Mileage	EV vs Petrol
Under 5,000	Petrol usually cheaper
5,000-10,000	Similar costs
10,000-15,000	EV starts winning
Over 15,000	EV much cheaper

Cost by Mileage

Total Annual Costs

Mileage	Small Petrol	Medium Petrol	EV
5,000	£3,000	£4,000	£3,000
8,000	£3,600	£4,700	£3,250
10,000	£4,000	£5,200	£3,400
12,000	£4,400	£5,700	£3,550
15,000	£5,000	£6,500	£3,800
20,000	£6,000	£7,800	£4,200

Saving Money on Motoring

Biggest Savings

Strategy	Annual Saving
Drive less	£300-£1,000
Buy older car	£1,000-£3,000 (depreciation)
Choose economical car	£300-£700 (fuel)
Shop around for insurance	£100-£400
Use supermarket fuel	£50-£150
Eco driving	£100-£300 (fuel efficiency)

Fuel Efficiency Tips

Tip	Improvement
Correct tyre pressure	3-5%
Remove roof box	10-20%
Gentle acceleration	5-10%
Anticipate traffic	5-10%
Use cruise control	5-7%
Air con off when possible	5-10%

Alternatives to Car Ownership

Car Sharing/Club

Provider	Cost
Zipcar	£7-£20/hour
Enterprise Car Club	£6-£15/hour
Co-wheels	£5-£12/hour

Best if: You drive less than 6,000 miles/year

Cycling + Public Transport

Option	Annual Cost
Good bike + maintenance	£200-£500
Annual rail pass	£500-£5,000
Bus pass	£500-£1,500

Cost Comparison

Option	Annual Cost
Own small car (8k miles)	£3,500-£4,500
Car club + public transport	£2,000-£4,000
Public transport only	£1,500-£3,500
Cycle + occasional car hire	£1,000-£2,500

Summary Cost Calculator

Quick Estimate Formula

Monthly running cost =

Fuel: (Miles/month ÷ MPG × 4.55) × fuel price
Insurance: Your quote ÷ 12
Tax: Annual rate ÷ 12
Maintenance: £40-£80
Depreciation: (Purchase price × 0.15) ÷ 12 (first year)

Example: Ford Focus 1.0 EcoBoost

Category	Monthly	Annual
Fuel (667 mi, 45 mpg)	£101	£1,212
Insurance	£58	£700
Tax	£15	£180
MOT/service	£38	£450
Tyres/repairs	£33	£400
Depreciation	£150	£1,800
Total	£395	£4,742