New research by LeaseCar UK revealed drivers could have to pay up to £30,000 in their first year of owning a vehicle.
It’s no secret that owning and running a car is one of the biggest outgoings, but one deemed as necessary by 69% of the UK. More than 11 million Brits have less than £1,000 in savings – making buying a car outright impossible for many drivers.
That’s why LeaseCar UK has analysed the true cost of owning a car in the UK in 2024 vs. 2014, considering expenses like the outright purchase of a car, insurance, fuel, and tax, to reveal the financial strain car ownership places on the nation.
The cost of car ownership has increased 84% since 2014.
The analysis, which reveals that if Brits wish to purchase one of the most popular cars in the UK, they would spend on average £29,526.42 in their first year of ownership.
Ten years ago, the average cost of ownership would be £16,048.42 in the first year, if purchasing a vehicle with a lump sum – that’s £7,478.42 less than it would be this year and 59% of the average annual wage at the time.
How has car ownership increased in price in the last ten years?
Besides the initial purchase, the biggest expense for car owners in 2024 is fuelling the car with a predicted spend of almost £900 (£855.92), which has increased 12% since 2014. Fuel in 2014 still remained to be the biggest expense of car ownership outside outright purchase but cost just £405.47 on average for the year – almost £250 cheaper than drivers would pay to insure the most popular vehicles in 2024.
The second costliest expense per year is insurance, with an average cost of £622 – an 53% increase on what the average insurance premium would cost for a popular vehicle in 2014. Tax has seen the biggest increase in the last ten years, with the average cost of taxing ten popular vehicles in 2024 vs. 2014 rising by 578.5%.
Ten years ago, the average cost of ownership would be £16,048.42 in the first year, if purchasing a vehicle with a lump sum – that’s £7,478.42 less than it would be this year and 59% of the average annual wage at the time.
