What is the Overall Cost of Owning a Car? *

*Collaboration

With the rising costs of living, understanding the true financial commitment of car ownership is crucial, especially for first-time buyers. 

Recent trends have shown a significant increase in the overall costs associated with owning a car, influenced by insurance, fuel prices, and maintenance. In this article, we break down these costs to give you a clearer picture of what to expect when owning a car in the UK.

Initial Purchase and Financing Costs

The first major expense is the purchase price of the car. Whether you opt for a new or used vehicle, prices can vary widely. For example, popular models like the Vauxhall Corsa start from around £18,500, while a Volkswagen Golf can set you back upwards of £30,000​.

If you’re financing your car, be mindful of the interest rates and total cost over the loan period. The cost of finance products such as PCP and HP can add significantly to your overall expenses, so comparing different options is essential.

Insurance

Car insurance is a mandatory expense and can vary significantly based on several factors, including the driver’s age, location, and the car’s make and model. 

On average, UK car insurance​ costs have risen to over £400. These increases are down to insurers having to spend more on fixing claims as the cost of living continues to bite individuals and businesses across the country.

Fuel Costs

The average annual fuel cost for a petrol car is around £1,000, while diesel cars tend to cost a little extra. With fuel prices fluctuating, these costs can vary, so choosing a fuel-efficient vehicle can help mitigate this expense. Additionally, electric vehicles (EVs) are becoming more popular due to their lower running costs, despite higher initial purchase prices.

Tyres

Tyres are a critical component of vehicle safety and performance. Investing in quality tyres not only enhances driving safety but can also improve fuel efficiency. The cost of replacing tyres can vary, typically ranging from £200 to £600 for a set of four. Regular maintenance, such as checking tyre pressure and alignment, can extend the lifespan of your tyres. For competitive prices, consider visiting local tyre fitters in Cambridge or other reputable providers in your area.

Maintenance and Repairs

Regular maintenance and unexpected repairs are inevitable parts of car ownership. 

This includes routine servicing, which is crucial for keeping your car in good working order, and addressing any unexpected issues that arise. A good service might set you back a few hundred pounds but can catch small issues before they get worse – potentially saving you much, much more in the long run. Don’t forget your annual MOT and any associated repairs that might be required.

Older cars or those out of warranty may incur higher maintenance costs, so it’s wise to budget accordingly.