The monthly cost of owning a car in the UK is a lot more in 2022 than it was even just a year or two ago. What with the cost of living and fuel prices going through the roof, owning a car isn’t as simple as it once was. But what are the expenses to consider when purchasing a car in the UK?
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Owning and operating a vehicle is a big deal, whether it’s your first car or you’ve just traded in your older car for something newer and sleeker. For the most part, a lot of people think the only financial consideration to make is the price of the car itself. However, keeping a car running well comes with its own set of bills that you need to bear in mind.
So let’s take a look at the average cost of car ownership in the UK…
Fuel Efficiency
There are a few ongoing costs that you need to contend with to keep your car running as it should. The most prevalent running cost will be the price of fuel. There are a few different factors that will affect just how much your fuel costs are going to be.
Firstly, there are the factors that you can’t plan for – such as fuel shortages driving the price up.
Secondly, the type of fuel that your car takes will also affect how much it will cost to run. Petrol tends to be cheaper than diesel, although the margin is relatively small these days.
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Thirdly, some cars are more efficient to run, which means the fuel will last longer. For example, electric cars are much cheaper to run as they don’t need to be filled up with petrol or diesel.
Finally, the frequency of use and the type of driving that you do will also affect your car’s fuel consumption. Frequent short trips can often use more fuel than infrequent longer journeys.
It is said the average car in the UK will do around 30,000 miles in a year – that’s a lot of fuel!
Car Tax & Insurance
Two of the main expenses to consider when purchasing a car are the tax and insurance you’ll need. These costs are likely to be the biggest ones you spend each year and can either be billed annually or monthly, depending on your preference and your budget. Both road tax and insurance, like a valid MOT, are legal requirements and you cannot drive without them.
Most of the time, paying annually will mean your tax and insurance costs are lower than if you were to pay monthly. The monthly options will generally come with added interest which makes it the more expensive option. So, if you can afford it, pay it all in one go to save yourself money in the long run.
You can use a comparison site to find the best deal for your car insurance. However, when it comes to taxing your vehicle, it has to be done through the government’s website, if you’re lucky, your vehicle might be exempt from paying tax, but it still needs to be registered.
However, another way to get a cheaper insurance rate (depending on your age), might be to get a motorbike instead of a car. New riders might be interested in 125cc motorbike insurance, which is perfect for beginners as well as intermediate riders.
MOT Test
Most vehicles will need yearly a yearly MOT; it is, after all, a legal requirement. Your car is tested to ensure that it is roadworthy and safe to drive.
This test is designed to check your car for any safety issues, either for you or other road users. Most garages charge a flat rate for the Mot, and then any additional repairs will be billed on top.
On the other hand, having your car serviced is not a legal requirement. However, it can help save money on your Mot if these issues are caught before they cause more damage. If you want to save some money, it might be worth trying an OBD reader like the one available from Carly. It’s a diagnostic tool that can be used to find issues with your car without having to pay garage prices.
Service & Repairs
Other than the scheduled MOT, you will also have to pay for any servicing and repairs that need doing. Even if you’re the most careful driver, wear and tear will happen as you use it.
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Whether it’s bumps and scratches here and there. Perhaps you need some new tyres, your air conditioning runs out, or you have a more serious accident or collision.
Even the little things that will need doing at some point will add to the total cost of owning a car. Deep cleaning your car, (whether doing it yourself or taking it to be valet) cleaned, buying the best snow foam, or car wax are also some things to consider when totting up the cost of owning a car.
Finance
Some people will be fortunate enough to have the money to purchase their vehicle outright, which means no repayments need to be made. However, others are not as lucky. A lot of people choose to purchase their cars on finance which is essentially like a loan which is used to purchase the vehicle.
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Buying a car on finance is often a long and tedious process. However, it is the best option for a lot of people who couldn’t purchase a car any other way. However, the monthly repayments can be quite a lot to contend with, so make your finance plan as short as possible.
Breakdown Cover
The last running cost to consider is breakdown cover, which is optional. It is not a legal requirement like most of the other expenses on the list.
However, it does make sense to have it. If you break down without cover in place, it might actually cost you more to have your car recovered. The peace of mind afforded to you by having breakdown cover in place can also be priceless. Do some research, and look online to work out what level of coverage you want.
In Conclusion
Having a car is great. It affords you a new level of independence to go wherever you want, whenever you want. However, having this many expenses to consider when purchasing a car should make you stop and think before purchasing.
So, before you purchase a new car, you need to come up with a budget. Think about how much you can afford to pay for the car itself, and the running costs.
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You can do some research to find a car that’s cheaper to run. Check the tax requirements and estimate how much it will cost to insure each of the cars that you are looking at. This will give you a better idea of the overall cost.
You can use this car costs calculator to work out how much it might cost you to own a car in the UK. What do you think will be your monthly cost of owning a car in the UK?
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