Understanding the cost of car ownership in the UK

Owning a car offers freedom and convenience, but it also comes with hidden expenses. Understanding the cost of car ownership in the UK is essential for budgeting and avoiding financial surprises.

Car ownership costs

Purchase price and depreciation

The biggest cost is often the purchase itself, but depreciation quickly reduces a car’s value. On average, a new car can lose up to 60% of its value within the first three years.

Insurance Cost

Car insurance is a legal requirement, and prices vary depending on your age, driving history, and vehicle type. Comparing providers regularly can help reduce this ongoing expense.

Fuel and efficiency Cost

Fuel is one of the most consistent costs. Your car’s efficiency, driving style, and fuel prices all play a big role in how much you spend each month.

Maintenance and repairs Cost

Servicing, MOTs, and unexpected repairs add up. Regular checks can prevent major breakdowns, but it’s wise to budget for both routine and emergency costs.

Road tax and fees

Vehicle Excise Duty (road tax) and charges such as ULEZ or Clean Air Zone fees are also part of ownership, especially if you drive in major UK cities.

Why budgeting matters

Factoring in all of these costs helps you make better decisions, whether buying a new car, switching insurers, or planning long-term ownership.

Save more with Rooster

The Rooster app helps you cut down on the cost of car ownership in the UK. From cheap car insurance to booking MOTs, services, and repairs for up to 50% less, Rooster makes owning a car more affordable. Download Rooster today to start saving.