Question 1

How much does it cost to run a car in the UK?

Accepted Answer

The average cost of running a car in the UK is around £3,000–£5,000 per year depending on the vehicle, mileage and insurance. Fuel is typically the biggest variable cost, while insurance is the biggest fixed cost for most drivers. Running costs per mile typically range from 20p to 50p.

Question 2

What is the standard road tax rate for 2026?

Accepted Answer

The standard annual road tax (VED) rate for cars registered after April 2017 is £200 per year. Cars with a list price over £40,000 pay an additional £440 per year for the first 5 years, bringing it to £640. Electric cars registered before April 2025 were exempt but now pay the standard £200 rate.

Question 3

What is the maximum MOT fee?

Accepted Answer

The maximum MOT fee set by the government for a car is £54.85. Many garages charge less than this, and some offer discounts if you also book a service. The fee does not include any repair work needed to pass.

Question 4

How do I calculate fuel cost per mile?

Accepted Answer

Divide 100 by your MPG to get litres per 100 miles, then multiply by the fuel price per litre divided by 100. For example, a car doing 40 MPG with fuel at 143p/litre costs approximately 16p per mile in fuel. The calculator does this automatically based on your inputs.

Question 5

Are electric cars cheaper to run than petrol?

Accepted Answer

Usually yes for fuel costs — electric cars typically cost 4–8p per mile in electricity vs 12–20p per mile for petrol. However, insurance is often higher for EVs, and home charging equipment adds an upfront cost. The total running cost gap depends heavily on your electricity tariff and charging habits.

Question 6

How much does depreciation cost per year?

Accepted Answer

Depreciation is often the single biggest car cost, especially in the first few years. A new car typically loses 15–25% of its value in year one and a further 10–15% per year after that. A £25,000 car might be worth £18,000 after three years  -  a depreciation cost of around £2,300/year. Buying a 2–3 year old used car avoids the steepest part of the depreciation curve. The calculator lets you enter a depreciation figure as part of the total annual cost if you want to include it.

Question 7

How much should I budget for servicing and tyres?

Accepted Answer

Annual service costs for a standard petrol car typically run £200–£400 depending on age and make. Tyres cost £80–£200 each, and most cars need new tyres every 20,000–40,000 miles. Budgeting £400–£700 per year for servicing, tyres and consumables (brake pads, windscreen wash, etc.) is reasonable for an average family car. Electric vehicles have lower servicing costs as there is no oil, cambelt, or clutch, but tyre wear can be higher due to the weight of the battery.

Car Running Costs Calculator UK 2026