Annual cost of car ownership surpasses £5,000
The average annual cost of car ownership has been calculated at £5,027.
Much of this comes from depreciation, with analysis from Carwow finding that the value of a new car falls by an average of £3,851 per year, or about 9.2%.
Other costs include average insurance premiums of £716, maintenance and MOT costs of about £265, plus vehicle tax which can add up to £790 per year.
Despite these costs, further Carwow research has revealed that of the 32 million cars licensed in the UK, about 1.9 million are largely idle.
Thousands of pounds
Iain Reid, global director of content at Carwow, said: “Many drivers assume their car only costs money when they use it. In reality, the biggest cost is depreciation and that happens whether the car is on the road or not.
“For drivers with newer or higher-value cars, that can mean losing thousands of pounds each year, even if the car is rarely used.
“If a car isn’t being used regularly, it’s worth thinking about whether it still makes financial sense to keep it.
“If you are thinking about what to do with a vehicle that you don’t drive much, declaring it as SORN can reduce some costs like tax and insurance. However, a SORNed vehicle cannot be driven on public roads, which can make it less attractive to potential buyers and may complicate a private sale.”
