Cost of running a car

Issue date: 02-05-05

For most of us, a car is our first big purchase in life. But the
cost of running a car is ongoing and runs into several thousand
pounds a year. So online car insurance provider, elephant.co.uk has
calculated the annual running costs for three motorists with different
circumstances.

The total annual costs range between £1,504 for a small
car with low annual mileage and £4,425 for a large car with
high annual mileage. But if motorists are aware of the costs
of running a car, they may be able to reduce them by hundreds of
pounds a year.

Costs such as petrol and parking, annual costs such as tax and
insurance and also repair costs and servicing. It did not take into
account loan repayments or depreciation in the value of the cars.

Managing director, Tanzie Oliver, said: "For most people a
car is an essential part of life, but when you add up the annual
running costs, they come as quite a shock.

"Although many of the costs associated with a car are unavoidable,
there are some ways to save money. For instance reduce your mileage.
You will not only lower your insurance premium, but also reduce
wear and tear and fuel costs. Use car washes and valeting services
less and wash your car yourself. And, of course, shop around for
the cheapest insurance. It may sound obvious, but most motorists
contact just two or three insurers at the time of their renewal".

The three example motorists all have different circumstances, and
so their motoring costs vary. A car with a larger engine costs more
to tax and it will be less economical with fuel. An older car will
need an annual MOT, it may need repairing more often. Some drivers
will have to pay congestion charges or parking fees, some will pay
more for breakdown cover than others and all will pay a different
amount for ....cont/

their car insurance.

All the examples below include one year's comprehensive insurance
with elephant.co.uk.

Example 1 - Small car driver - 21-year-old female student living
in Edinburgh driving a 1994 Ford Fiesta 1.1 LX, driving 5,000 miles
a year.

Annual Running Cost
Amount

Road Tax
£105

Petrol
£497

Insurance
£261

MOT
£39

Servicing
£60

Tolls and Congestion Charges
£0

Parking
£218

Cleaning and Valeting
£24

Oil, brake fluid and antifreeze
£90

Breakdown Cover
£75

Wear, tyres and repairs
£135

TOTAL

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size="2">£1,504

Example 2 - Sports car driver - 30-year-old male accountant living
in Reading driving a 2003 Mazda MX5 1.8I, driving 10,000 miles a
year.

Annual Running Cost
Amount

Road Tax
£165

Petrol
£1,150

Insurance
£428

MOT
£0

Servicing
£150

Tolls and Congestion Charges
£58

Parking
£390

Cleaning and Valeting
£70

Oil, brake fluid and antifreeze
£85

Breakdown Cover
£100

Wear, tyres and repairs
£160

TOTAL
£2,756

...cont/

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Example 3 - Large car driver - 40-year-old male doctor living in
Richmond driving a 2003 BMW 323 2.5 Estate, driving 12,500 miles
a year.

Annual Running Cost
Amount

Road Tax
£165

Petrol
£1,340

Insurance
£529

MOT
£0

Servicing
£193

Tolls and Congestion Charges
£1,200

Parking
£75

Cleaning and Valeting
£260

Oil, brake fluid and antifreeze
£85

Breakdown Cover
£150

Wear, tyres and repairs
£428

TOTAL
£4,425