The True Cost of Owning a Car

By Nina Albrecht · Published Sep 29, 2026 · 5 min read

In this guide

Fixed costs
Variable costs
Calculate cost per mile
Where to save
Plan for the unexpected

Many people underestimate what their car costs each year because the biggest costs — depreciation and finance — are not paid at the pump.

Adding up the full picture helps when choosing a car or deciding whether you need one.

Fixed costs

Depreciation
Insurance
Registration and road tax
Finance interest
Parking permits or garage rental

Variable costs

Fuel or electricity
Tyres
Servicing and repairs
Tolls and parking charges

Calculate cost per mile

Add up a year’s costs and divide by the number of miles you drive. The result is often surprising, and helpful when comparing with public transport, car sharing, or a cheaper vehicle.

Where to save

Shop around for insurance at each renewal, keep tyres properly inflated, follow the maintenance schedule to avoid big repairs, and consider whether a smaller or more efficient car would meet your needs.

Plan for the unexpected

Set aside money each month for repairs and replacements, especially as the car ages.

This is general car-buying information, not financial or legal advice. Prices, incentives, financing terms, and specifications change and vary by region — confirm all details in writing before you sign anything.

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The True Cost of Owning a Car

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