The true annual cost of running a car goes far beyond fuel. Fixed costs (insurance, road tax, MOT) remain the same regardless of miles driven, while variable costs (fuel, tyres, servicing) scale with usage. The average UK motorist spends £3,000–£5,000 per year on car running costs.
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Pro Tip
Depreciation is the largest hidden cost for new car owners — a new car loses 15–35% of its value in year one. Buying a 2–3 year old car avoids the steepest depreciation while still getting a nearly-new vehicle.
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