The Cost of Owning a Car in 2025: What Drivers Forget

Whether you’re buying your first car or budgeting for the one you already own, it’s easy to underestimate the true cost of car owning a car in the UK. From insurance to MOTs, hidden fees to zone charges, the expenses can pile up fast.

At Resolvo, we’re here to make car ownership smarter. We have free tools like our MOT Checker, Road Tax Check, and Emissions Band Finder to help you stay ontop of things, save money and beat parking tickets.

Here’s a full breakdown of what owning a car really costs in 2025 — so you’re never caught off guard.

📅 Main & Expected Costs

These are the ones most drivers know about and (hopefully) budget for.

Insurance

Car insurance is legally required. Comprehensive cover costs an average of £460/year, but premiums can skyrocket for young drivers, expensive cars, or those in high-risk postcodes.

Road Tax (VED)

Also known as vehicle excise duty. Rates vary:

• £20-£760 for most petrol/diesel cars registered 2001-2017

• £195 annually for newer cars (April 2017+)

• Additional £425/year if the list price exceeds £40,000

Use this tax checker to see how much road tax is for a car

Fuel or Electricity

Fuel prices fluctuate constantly. On average:

• Petrol: ~£1700/year for typical use

• Diesel: ~£1600/year

• EVs: ~£800/year (depending on usage)

Use apps like PetrolPrices to find the best pump rates near you.

✅ MOT & Annual Service

Every car over 3 years old must pass an MOT yearly. Max test fee: £54.85.

• Minor issues = small repairs

• Major failures = costly repairs, possibly hundreds

Use this MOT checker to quickly see your expiry date and full MOT history.

✅ Routine Maintenance

Expect to pay £400-£600/year for:

• Tyres, brakes, oil changes

• Fluids, filters

• Bulbs, wipers, and basic wear-and-tear

🕵️ Hidden & Unexpected Costs

These are the sneaky ones that can wreck your budget if you’re not prepared.

Depreciation

Your car loses value the second you drive off. Depreciation is your biggest silent cost.

Unexpected Repairs

Breakdowns and surprise repairs can cost hundreds — or thousands. Older vehicles are especially prone to big-ticket failures (gearbox, suspension, engine).

Keep an emergency repair fund, or consider a warranty for added peace of mind.

Parking, Fines & Zone Charges

• ULEZ, LEZ, CAZ zones: up to £12.50/day if your car isn’t compliant

• Parking fees (on-street, events, stations)

• Parking or speeding fines

Use this tool to see if your car is ULEZ-ready.

Finance Costs & Balloon Payments

Car finance (HP, PCP, leasing) might look affordable monthly, but:

• APR interest adds up

• Missed balloon payments can mean losing the car

• Dealers may tack on fees at the end

Always read the small print.

Admin & Dealer Fees

Buying from a dealership may include:

• “Admin” fees (£95-£199)

• Extended warranties

• Service plans

• Delivery fees

Private sales can be cheaper but offer less protection.

Tax & Regulation Changes

Rules change fast. In 2025:

• Electric Vehicles now pay road tax

• Fuel duty may increase

• More cities are launching Clean Air Zones

🧐 Final Thoughts

Owning a car offers freedom — but it’s not cheap. When budgeting, don’t just focus on the sticker price. The real cost can often thousands more.

Let Resolvo help you to

• Check MOT, Tax, and Emissions in seconds

• Fight your parking tickets