Cost of owning a car up 84% in 10 years

British motorists have experienced a staggering rise in the cost of car ownership during the past 10 years, reveals new data from LeaseCar UK.

The research found that, compared to 2014, the first-year cost of owning a car in the UK has increased by 84 percent. 

Despite the impact of the cost of living crisis, more than two thirds (69 percent) of Brits say vehicle ownership is vital to their lifestyle. However, the increasing costs can potentially put a strain on household finances.

Average price of a car increases

LeaseCar UK’s research considered the total cost of ownership following the first year of purchasing a new car outright. 

The average total cost of the first year of vehicle ownership, when choosing one of the most popular cars on sale, now stands at £29,526.42. This is some £13,477.58 more than the average total figure of £16,048.42 paid a decade ago.

Average purchase prices for one of the most popular cars in the UK have risen by 88.9 percent between 2014 and 2024, too. It means the typical amount paid in cash for a car has nearly doubled, from £14,637 to £27,649.

Insurance and tax costs also up

Maintenance costs have also increased by 62.87 percent from £129 in 2014 to £210 this year. And car insurance premiums have jumped as well: now £622 instead of 2014’s average of £405.47.

Lastly, changes to VED (road tax) rates have resulted in drivers paying more. In 2014, the most popular car models had an average annual VED rate of £28. This has risen by an incredible 578.57 percent, now costing drivers a typical £190 per year.

Although fuel remains the second-largest component of the cost of car ownership, pump prices have risen by just 0.75 percent during the past 10 years. Filling up now adds £855.92, instead of £849.52, to the total cost of driving in the first year.

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