Total annual running cost
Cost per mile
vs UK average (£3,407/yr)
Cost breakdown by category
Estimate only. Does not include depreciation (typically the largest single cost of car ownership). UK average running cost is approximately £3,407/year excluding finance and depreciation (RAC Report on Motoring 2025).
What is the average cost of running a car in the UK in 2026?
The average UK driver spends approximately £3,407 per year on car running costs, excluding finance repayments and depreciation. When depreciation is included, the true annual cost of ownership for a typical family car rises to £5,000–£8,000 per year.
Costs vary widely depending on the type of car, how much you drive, where you live, and your insurance profile. London drivers typically pay far more due to higher insurance costs, parking, and the Congestion Charge.
The hidden costs of car ownership most drivers forget
- Depreciation — A new car loses 15–35% of its value in the first year and 50–60% over 3 years. This is often the largest single cost of ownership but is rarely factored into "running cost" comparisons.
- Tyres — A full set of tyres costs £200–£600 depending on the car, and most drivers need new tyres every 3–5 years. That's £50–£200 per year amortised.
- Breakdown cover — RAC or AA cover costs £80–£150/year.
- Parking fines and congestion charges — London's Congestion Charge is £15 per day for non-exempt vehicles.
- Car wash and valeting — Regular cleaning and occasional professional valeting adds up.
How to reduce your annual car running costs
- Compare insurance quotes at renewal every year — loyalty doesn't pay
- Consider telematics (black box) insurance if you're a careful, low-mileage driver
- Keep up with servicing to avoid costly repairs from neglect
- Check tyre pressures monthly to reduce wear and improve fuel economy
- Consider whether you need the car for every journey — car clubs like Zipcar or Enterprise Car Club can be cheaper than ownership for very low-mileage drivers