Question 1

What costs make up a car's running cost?

Accepted Answer

The main running costs are fuel or electricity, road tax (VED), insurance and servicing or maintenance. The calculator brings these together so you can see the real annual and monthly cost of keeping a car on the road, rather than just its purchase price.

Question 2

Is an electric car cheaper to run than petrol?

Accepted Answer

Electric cars are usually cheaper per mile for energy, especially if you charge at home, and often have lower servicing costs because they have fewer moving parts. Whether they work out cheaper overall depends on your mileage, electricity and fuel prices, and insurance. The side-by-side comparison lets you test it for your own situation.

Question 3

How is road tax (VED) calculated?

Accepted Answer

Vehicle Excise Duty depends mainly on a car's CO2 emissions and its registration date, with a higher first-year rate and a flat standard rate thereafter. More expensive cars can also pay an additional surcharge for several years. The calculator lets you enter an estimated annual figure for each car.

Question 4

What is the true cost of car ownership?

Accepted Answer

True cost of ownership goes beyond the sticker price to include fuel or charging, insurance, tax, servicing and depreciation over the time you keep the car. Comparing two cars on running costs alone can reveal that the cheaper car to buy is the more expensive one to own.

Car Running Cost Calculator

Cumulative running cost (5 years)

Annual cost breakdown