Owning a car is a significant financial commitment, and beyond the upfront cost or monthly lease payment, there are several ongoing expenses to consider.
Whether you drive a traditional internal combustion engine (ICE) more commonly referred to as petrol or diesel or an electric vehicle (EV), understanding the true cost of ownership is crucial. From legal requirements to maintenance considerations, skipping essential costs may seem like a money-saving tactic but often leads to greater financial strain in the long run.
Legal Requirements
Regardless of whether your vehicle is petrol, diesel, or electric, certain costs are unavoidable because they are legal obligations:
- Road Tax (Vehicle Excise Duty - VED): While EVs currently benefit from zero road tax, this will change in April 2025, when they will be taxed similarly to ICE vehicles. For petrol and diesel cars, VED is based on CO2 emissions, meaning the more polluting the car, the higher the tax
- MOT (Ministry of Transport Test): All vehicles over three years old must pass an annual MOT to ensure they meet road safety and environmental standards. The test costs up to £54.85 for cars, but failing could result in costly repairs
- Car Insurance: A legal necessity, insurance costs vary significantly based on factors such as vehicle type, driver history, and location. Generally, EVs can have slightly higher insurance premiums due to their higher repair costs
- Fuel/Energy Costs: Petrol and diesel prices fluctuate, but as a rule, ICE vehicles are more expensive to refuel than EVs are to charge, particularly for those who can charge at home on off-peak tariffs. However, public rapid charging can be costly, bringing EV running costs closer to ICE equivalents
Maintenance Costs
Routine maintenance is not only essential for keeping your vehicle safe and efficient but also for avoiding bigger, more expensive problems down the line. Many motorists attempt to cut costs by delaying servicing or using cheaper alternatives, but this can be a false economy.
Servicing and Repairs
- ICE Vehicles
Traditional petrol and diesel engines have more moving parts, requiring regular servicing. Oil changes, timing belt replacements, and brake maintenance all add up, but neglecting these can lead to breakdowns or even engine failure, which is far more expensive to repair.
- EVs
With fewer moving parts and no need for oil changes, EVs have lower maintenance requirements. However, battery health is crucial. Skipping manufacturer-recommended check-ups could shorten battery life, and replacements are a major cost.
Tyres and Brakes
- Tyres - EVs tend to wear tyres faster due to their weight and instant torque, making regular checks even more important. Poor tyre maintenance can lead to lower efficiency, compromised safety, and even fines if below the legal tread depth.
- Brakes - While EVs use regenerative braking, reducing wear, ICE vehicle brakes need more frequent servicing. Ignoring brake maintenance can result in dangerous driving conditions and costly repairs.
Smart Spending Saves Money
Trying to save money by avoiding maintenance or legal requirements is a false economy. Neglecting servicing could lead to expensive repairs, while driving without valid insurance or an MOT could result in hefty fines or even having your vehicle taken off the road.
Understanding the full scope of car ownership costs—from tax and insurance to maintenance —ensures you stay compliant, safe, and financially prepared.
Whether you drive an ICE vehicle or an EV, keeping up with necessary expenses is the best way to protect both your car and your wallet in the long run.
