Aside from the upfront price of a vehicle, there are quite a few associated costs with running a car. With rising fuel prices and everyday costs, it is getting more expensive to own a vehicle. While there are some ways to keep spending down, there are some compulsory costs that simply can’t be avoided.
From MOTs and servicing to insurance premiums, here is what you need to factor into the costs of owning a car.
Insurance
Insurance is a car necessity that you really can’t go without – for both legal and safety reasons. This compulsory cost varies from driver to driver depending on the model of car you’ve purchased, your driving history and personal factors like the area you live in.
Standard insurance policies are legally required but you may require more comprehensive coverage if your driving habits call for it. GAP insurance provides additional cover in the event of a road collision and can help alleviate some of the financial burden. If you’re sharing a car with a partner or roommate, you will need any-driver insurance, which is some of the most expensive around.
Fuel
If you’ve lived in the UK for the last few years, you’re likely no stranger to rising fuel costs. Once again, the country’s petrol and diesel prices are heading north again, with the average price per litre of petrol sitting at £1.44 and diesel at £1.52.
Generally, diesel cars are considered cheaper to run but they do have their own issues so you might want to consider alternative fuel types. Hybrid and electric cars are undoubtedly better for the environment, but they tend to have a higher fuel economy than fossil fuel engines.
Vehicle tax
Also known as road tax, the flat vehicle tax rate for the 2023/24 tax year is £180. This is up from £165 the previous year, however, you can take advantage of a £10 annual discount if you own an alternatively fuelled vehicle.
Drivers must buy this tax every year and it is used to contribute towards road work and maintenance projects that benefit everyone who uses the road. If you live in cities like London and Manchester, you also may be subject to clean air zone fees or congestion charges, which are compulsory for all drivers on the road within specific areas of the city.
MOT and servicing
To keep your vehicle in tip-top shape and have it running into its golden years, you will need yearly mechanical checks. Your MOT is a legal requirement and may uncover problems with your vehicle that must be repaired and replaced.
Replacing parts like tyres, brake pads and windshield wipers can be a costly process so be sure to check your vehicle over regularly to prevent future problems.
