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

According to NimbleFins, the average monthly cost of running a car in the UK is around £280. This includes expenses such as fuel, insurance, tax, servicing, and repairs, but actual costs will vary depending on the type of car and how often you drive.

What are the main costs of running a car?

Key car running costs include fuel, insurance, vehicle tax (VED), MOTs, servicing, and repairs. If you finance your car, monthly repayments will also need to be factored in. Smaller extras such as parking, tolls, and Clean Air Zone charges should also be considered.

What is the average yearly cost of fuel in the UK?

The average annual fuel cost in the UK is approximately £1,100. This varies based on fuel prices, the efficiency of your vehicle, and how many miles you drive each year.

How much does an MOT cost?

An MOT for cars over three years old costs up to £54.85 for the test itself. However, if repairs are needed to meet legal road safety standards, additional costs may apply.

How much does a car service cost?

A full car service typically costs between £170 and £400, depending on the size and type of the vehicle. Regular servicing helps prevent costly repairs and keeps your car reliable.

What is Vehicle Excise Duty (car tax) and how much does it cost?

Vehicle Excise Duty (VED), also known as car tax, is a government charge for keeping a car on UK roads. The amount depends on factors like your car's age, fuel type, and CO2 emissions. Electric vehicles are currently exempt from VED.

How do car finance costs affect the overall cost of owning a car?

If you use car finance, monthly repayments will add to your total running costs. At Car Finance 247, Hire Purchase (HP) and Personal Contract Purchase (PCP) options are available, allowing you to spread the cost of a car through fixed monthly payments. Always ensure finance repayments fit within your budget.

How can I manage and reduce my car running costs?

To manage costs, compare insurance deals, use a car finance calculator to plan repayments, choose a fuel-efficient car, and keep up with regular maintenance. Budgeting for all expenses, including tax and repairs, can help you avoid unexpected financial stress.

How much do cars cost to run? A complete guide

Written by Louise Haines Updated 22 Oct 2025

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There are a lot of factors that go into the average cost of owning a car in the UK. It’s not just the upfront cost; cars may come with ongoing expenses such as fuel, insurance, tax, servicing, and repairs. And, if you use car finance, the repayments might be another key part of your budget.

To help you budget and plan ahead, here’s a breakdown of all the total costs of running a car you may want to factor in.

How much does a car cost per month on average?

According to NimbleFins, the average monthly cost of a car in the UK is about £280. And that equates to a yearly average running cost of running a car each year costs an average of about £3,350. 

This figure could be a handy benchmark to work out how much it might cost you to own a car, but it’s only an average. Different cars and how much you drive may impact how much fuel you use. For example, if you pick a small, fuel-efficient car or an EV, and don’t drive much, you might spend less. On the flip side, if you buy a large SUV and clock up the miles, you could end up paying more.

Let’s look into what costs you might need to weigh up once you’ve bought your car.

What car running costs are there to think about?

When people ask about the cost of owning a car, they may only be thinking of fuel and insurance, but there are several other expenses to keep in mind:

Fuel costs
Car insurance
Servicing, MOTs and repairs
Vehicle tax
Car finance options if you choose to spread the cost
Smaller extras such as parking, tolls and Clean Air Zones

All of these combine to form the average cost of running a car in the UK, and it could be a good idea to factor them all into your budget. Here’s a more detailed breakdown of car costs to think about.

Fuel costs

What's the average fuel cost per year?

Fuel could be one of the biggest car running costs. How much you spend may depend on your car’s efficiency, how far you drive, and fuel prices in your area. But, according to NimbleFins, car fuel costs average out around £1,100 a year.

Drivers who mostly do short trips in cities often spend less, but if you frequently do long‑distance commute or have a big family car, you’ll usually spend more.

Servicing and maintenance costs

Keeping a car on the road takes more than just filling the tank. Servicing, MOTs, and occasional repairs could be an unavoidable part of the cost of owning a car.

MOT

Cars over three years old need an MOT every year. Garages charge a maximum of £54.85 for an MOT test. They’ll check all safety features of your car, including the engine, the clutch and the gearbox to make sure you’re safe to be on the road.

Bear in mind, if any issues are found, repairs might be costly. Even if your car passes the MOT, you may need to pay for small fixes like bulbs, wipers, or brake pads.

Car servicing

Another cost of a car is the servicing. It’s not a legal requirement, but regular servicing helps keep your car reliable and could prevent bigger, more expensive problems down the road. According to the RAC, a full car service costs between £170 and £400 depending on the size of your car.

Tax and insurance costs

Car tax

Car tax might be another regular expense. Officially called Vehicle Excise Duty (VED), car tax is a government charge for keeping a car on UK roads. If your car meets the requirements, you legally have to pay it each year and the amount could depend on factors like the car’s age, fuel type, and CO2 emissions. High‑emission petrol or diesel cars tend to pay the most, but EVs are currently exempt.

Car insurance

Insurance is another factor in the total cost of owning a car and could be one of the most expensive regular payments. You need car insurance to legally be on the road, so it’s not something you can avoid.

Your premium depends on a mix of factors which may include your age, driving experience, accident history, the type and value of your car, where you live, and even your job.

Premiums may rise and fall over time, which is why shopping around each year could be a good way to try and save money.

Car finance costs

Calculating the monthly cost of a car on finance

If you choose to finance a car, this is another element to factor into your budget. At Car Finance 247, we could offer Hire Purchase (HP) and Personal Contract Purchase (PCP), subject to status and eligibility.

With these car finance options, the cost is spread over fixed monthly payments. But it’s important to add this expense into the overall cost of owning a car, and make sure it's something you can afford for the length of the loan.

Using our free and simple car finance calculator may help you work out the monthly cost of owning a car on finance. It helps you get an idea of what your payments could look like and whether they fit comfortably in your budget with your other car running costs. Representative APRs and eligibility will vary based on individual circumstances.

The takeaway

Owning a car is convenient for many people and gives you lots of freedom, but it does come with ongoing costs that could quickly add up. From fuel and insurance to servicing and finance, it’s important to know the average cost of running a car to help you plan realistically.

By budgeting for all your car running costs, comparing insurance and finance deals, and keeping up with maintenance, you could manage the cost of owning a car more effectively.

Ready to look at your options? Get a free quote today.

Disclaimer: Car Finance 247 Limited is a broker, not a lender. Finance is subject to status and affordability. We do not give financial advice. No guaranteed offers. Please read the terms and conditions carefully.