Car True Cost of Ownership Calculator

Depreciation is the cost you never get a bill for

Across every market the largest cost of owning a car is the one that never arrives as an invoice. A new car typically loses 15–25% of its value in the first year and around half over five, which in most cases exceeds fuel, insurance and servicing combined.

Because it is invisible, it is the cost people optimise least. Shopping around on insurance saves tens; buying a car two or three years old instead of new saves thousands, by letting someone else absorb the steepest part of the curve.

The three decisions that actually move the total

• New or used. The single biggest lever, for the reason above.
• How long you keep it. Spreading the same depreciation over eight years rather than three roughly halves its annual cost. Changing cars often is expensive however carefully you buy.
• How far you drive. Below about 8,000 km a year, fixed costs dominate and fuel economy barely matters. Above 20,000, the reverse is true and an efficient car pays for itself.

What the running-cost figures assume

Insurance is the line that varies most between individuals — age, licence history, postcode and the car itself can move a premium by a factor of three or more, so the default here is a starting point rather than a quote. Maintenance rises with age in steps rather than smoothly: the expensive years are usually the ones after a warranty ends.

Finance is counted as a real cost. Interest on a car loan buys you nothing and is easy to overlook when comparing a monthly payment with an outright purchase.

Electric versus petrol

An electric car is generally cheaper to run and more expensive to buy, so the answer turns on mileage and how long you keep it. Fuel and servicing savings are real — no oil changes, fewer moving parts, often lower duty — but they take time to repay a higher purchase price, and insurance can run higher.

Charging matters as much as the car. Home charging on an off-peak tariff and relying on public rapid chargers produce very different running costs from the same vehicle.