The Real Cost of Owning a Car

Owning a car can be liberating.

It offers freedom and the ability to explore new places at your own pace. But for many UK drivers, the initial excitement of getting behind the wheel can be dampened by the costs that extend beyond the price you pay for the vehicle itself.  

There are a variety of ongoing expenses you’ll need to consider before committing.  

Depreciation

Unfortunately, cars are depreciating assets, which means their value will steadily decline over time. Regardless of whether you purchase a brand new or a second-hand vehicle, you’re unlikely to get the money that you paid for it back. 

Cars are valued on several factors including the amount of miles driven and wear and tear, alongside the model and make. Market demand can also play a role. This is something to bear in mind, especially if you plan on selling your car in the near future.

Fuel

Fuel costs are a continuing expense for any car owner. Current petrol and diesel prices in the UK are at a record high, putting a strain on household budgets.  

The cost of filling your tank will depend on several factors, including the type of fuel your car uses, its efficiency and your driving habits. More people are choosing fuel-efficient cars and adopting a more economical driving style to minimise fuel consumption and associated costs. Fuel prices are likely to fluctuate, so factor in potential increases when budgeting for car ownership.

Insurance

Car insurance is a legal requirement in the UK. It’s important to remember that your age, driving history, location, and the type of car you are driving can affect your premiums.  

A young driver with a limited driving history living in a busy city centre will typically pay a higher premium than a mature driver with a clean record living in a rural area.  While comprehensive insurance offers the most protection, it's important to find a plan that balances affordability with your risk tolerance. Consider getting quotes from multiple insurers to ensure you're getting the best possible deal.

Maintenance 

Regular maintenance is crucial for ensuring safety and longevity. You’ll need to think about costs for servicing, repairs, MOT tests and replacing worn-out parts like tyres. While servicing expenses can be somewhat predictable, unexpected repairs can significantly impact your budget.  

For expert servicing and repairs, choose reputable garages in your area, like tyre fitters in Newbury who can ensure your car is roadworthy and safe.

Additional Expenses

There are a range of extra costs to take into account when weighing up whether to get a car. Otherwise known as road tax, Vehicle Excise Duty (VED) is a yearly tax levied on all UK vehicles. The amount you pay depends on your car's CO2 emissions, with more polluting vehicles incurring a higher tax burden. 

Meanwhile, parking fees, tolls and car washes also contribute to the overall financial burden of car ownership.