The sticker price is only the beginning. Here's a complete breakdown of what it actually costs to own a car in 2026.
Most buyers focus almost entirely on the purchase price. But for the average UK driver, the ongoing costs of ownership dwarf what was paid upfront — often by a factor of two or three over a five-year period.
Purchase & Depreciation
Depreciation is the single largest cost of car ownership. A new car loses 15–35% of its value in the first year alone. By buying a car that's two to three years old, you let someone else absorb that initial hit — while still benefiting from modern safety features and reliability.
Insurance
Insurance groups range from 1 (cheapest) to 50 (most expensive). A car's group is determined by repair costs, performance, and security features. A group 20 car will cost roughly twice as much to insure as a group 10 — a significant annual difference over several years of ownership.
"Always check insurance costs before you commit to a specific model. Two cars at the same price point can have wildly different insurance groups."
Total Cost of Ownership
- Factor in depreciation: what will the car be worth in 3 years?
- Get an insurance quote before purchasing
- Check fuel economy in real-world conditions, not WLTP figures
- Budget for tyres: premium cars use expensive tyre sizes
- Include road tax and annual MoT costs in your calculation
Alfie has over 11 years of experience in the motor trade and founded Alfa Prestige to give buyers the insider knowledge that was previously only available to professionals.
