UK Car Ownership Costs Jump £5,000 to £11,500 a Year in 10 Years
Updated
Updated · Bodyshop Magazine · May 18
UK Car Ownership Costs Jump £5,000 to £11,500 a Year in 10 Years
1 articles · Updated · Bodyshop Magazine · May 18
£11,500 is now the estimated annual cost of running a car in 2026, up from £6,500 in 2016, according to research by ALA Insurance.
About £415 in extra monthly costs has been driven by higher fuel prices, rising insurance premiums, and steeper vehicle finance and purchase costs.
ALA said the average new-car driver now spends well over £900 a month once depreciation, fuel, insurance and tax are included, far above the headline monthly payment often shown to buyers.
Insurance costs have risen 70%, new-car prices nearly 90%, and finance costs have doubled over the decade, outpacing general inflation of roughly 35% to 40%.
As driving costs spiral towards becoming a luxury, is the UK's era of mass car ownership coming to an end?
With even electric vehicles now taxed, what is the true future for affordable personal transport in Britain?