Most expensive cars to run in the UK
04/06/2026
Reviewed by: Greg Wilson
Founder & Insurance Expert
Written by: Katie Gawley
Insurance Content Writer
Fact-checked by: Quotezone Editorial Team
This content follows our Editorial Guidelines
Last Updated: May 2026
Read time: 9 min
According to 2025 data from the DVLA there are 34.5 million licensed cars in the UK, and in 2024 there were around 12 cars for every 10 households in England. [1]
Yet behind these figures lies a wide divide in the cost of car ownership. From luxury SUVs to compact city cars, the difference in running costs can be substantial, depending on the brand or model.
As everyday living costs continue to rise across the UK, we set out to explore what motorists can realistically expect to spend on their car a year, based on the vehicle they drive.
To do this, we analysed 50 of the UK’s most popular and best-selling cars, comparing annual costs across finance, fuel, insurance, tax, and maintenance to determine both the most and least expensive models to run.
Our findings show a striking gap of £16,476 between the cheapest and most expensive cars in the study once all running costs are taken into account.
So where does your car sit on the scale? Read on to find out.
Key statistics:
- The research shows that the average UK motorist will spend £13,364 a year to run a car.
- This annual average figure is broken down as follows: finance (£9,810), fuel (£2,108), insurance (£990), taxes (£253), and maintenance (£203).
- The BMW i4 is the most expensive car in the study to run, with annual costs of £24,191, largely driven by high finance costs (£21,011), fees and taxes (£640) and insurance premiums (£1,430).
- The Dacia Sandero is the cheapest car to run in the study, with annual costs of £7,715, supported by low finance fees (£4,337), more affordable insurance (£626), and maintenance of around £170 per year.
- Alongside being the most expensive vehicles to run in the study, the BMW i4, Audi Q6 e-tron, and Land Rover Defender showed the greatest levels of first-year and overall lifetime depreciation.
The average cost of running a car in the UK
Across the 50 vehicles analysed in our study, the cost of buying a new car ranged from £14,765 for the Dacia Sandero to £71,525 for the BMW i4, with the average price around £33,395.
But the purchase price is only part of the story. Beyond the upfront cost, motorists also need to factor in the long-term expense of owning and running a vehicle. This includes everything from finance payments and fuel costs to insurance, taxes, and ongoing maintenance such as MOTs and servicing.
With that in mind, our research found that on average it costs around £13,364 per year to run a car in the UK.
This annual average figure is made up of:
- Finance: £9,810
- Fuel: £2,108
- Insurance: £990
- Taxes: £253
- Maintenance: £203
After finance costs, fuel was the second biggest expense for drivers. While inflation has eased, fuel prices across the UK have continued to climb. In May 2026, petrol prices rose to 156.8p per litre, while diesel reached an average of 190p per litre. [2]
The most expensive cars to run
Across all vehicles included in the study, the BMW i4 ranked as the most expensive car to own and run, with estimated annual costs reaching £24,191. That’s a staggering £16,476 more per year than the cheapest vehicle analysed.
Despite being the 11th cheapest vehicle to fuel per year, the electric BMW i4 had the highest finance charges per year (£21,011) and was the 6th most expensive when it comes to insurance (£1,430).
The Land Rover Defender ranked second, with yearly running costs of £22,820, followed closely by the Audi Q6 e-tron at £22,639 per year at just £180 less. The Land Rover Defender held the highest cost for fueling per year (£3,248) and was the fourth highest in terms of typical car insurance premium (£1,717).
However, if you drive a Land Rover Defender and are looking for ways to save money on fuel, experts from Quotezone.co.uk say reducing unnecessary weight, keeping up with regular maintenance, driving smoothly, changing gears early, maintaining correct tyre pressure, avoiding idling, limiting use of in-car functions, and not overfilling the tank can all help improve fuel efficiency.
The top 20 most expensive cars to run in the UK
| Rank | Brand | Model | Engine type | Annual Fuel cost | Annual Maintenance | Annual Insurance | Annual Road Taxes* | Annual Finance Charges | Annual Running Cost |
| 1 | BMW | i4 | Electric | £900 | £210 | £1,430 | £640 | £21,011 | £24,191 |
| 2 | Land Rover | Defender | Petrol or diesel | £3,248 | £395 | £1,717 | £640 | £16,819 | £22,820 |
| 3 | Audi | Q6 e-tron | Electric | £1,125 | £395 | £2,468 | £640 | £18,012 | £22,639 |
| 4 | BMW | X1 | Petrol | £2,382 | £170 | £1,047 | £640 | £15,441 | £19,680 |
| 5 | BYD | Seal U | Hybrid | £2,680 | £210 | £1,442 | £200 | £13,434 | £17,965 |
| 6 | Toyota | RAV4 | Hybrid | £2,680 | £210 | £921 | £640 | £12,880 | £17,331 |
| 7 | BMW | 3 Series | petrol | £2,680 | £210 | £1,372 | £640 | £12,322 | £17,224 |
| 8 | Audi | Q4 e-tron | Electric | £947 | £210 | £1,282 | £200 | £13,911 | £16,550 |
| 9 | Skoda | Kodiaq | Petrol or diesel | £3,248 | £395 | £822 | £200 | £11,728 | £16,394 |
| 10 | Tesla | Model Y | Electric | £900 | £210 | £1,808 | £200 | £12,335 | £15,452 |
| 11 | Volkswagen | Tiguan | Petrol | £2,680 | £210 | £829 | £200 | £11,433 | £15,352 |
| 12 | Volvo | XC40 | Hybrid | £2,382 | £170 | £1,090 | £200 | £10,828 | £14,670 |
| 13 | Tesla | Model 3 | Electric | £800 | £210 | £2,173 | £200 | £11,160 | £14,543 |
| 14 | Cupra | Formentor | Petrol | £2,680 | £210 | £1,006 | £200 | £10,374 | £14,469 |
| 15 | Skoda | Enyaq | Electric | £857 | £210 | £963 | £200 | £11,609 | £13,839 |
| 16 | Kia | Niro | Hybrid | £2,382 | £170 | £850 | £200 | £10,148 | £13,750 |
| 17 | Ford | Kuga | Hybrid | £2,680 | £210 | £800 | £200 | £9,792 | £13,683 |
| 18 | BMW | 1 Series | Petrol mild hybrid | £2,382 | £170 | £1,034 | £200 | £9,588 | £13,375 |
| 19 | Mercedes-Benz | A-Class | Petrol | £2,382 | £170 | £911 | £200 | £9,362 | £13,025 |
| 20 | Audi | A3 | Petrol mild hybrid | £2,382 | £170 | £1,196 | £200 | £9,076 | £13,024 |
*Based on second year prices
The cheapest cars to run
At the other end of the scale, which vehicles are the most affordable to own and run in the UK?
Our research found that the Dacia Sandero is the cheapest car in the study to run, with annual costs of £7,715 covering fuel, finance, maintenance, insurance, and taxes.
The Dacia Sandero stood out for having the lowest average finance costs per year (£4,337) and cheapest car insurance (£626), plus an estimated yearly maintenance price of just £170.
The Renault 5 ranked as the second most affordable vehicle, with yearly running costs of £7,985. A relatively new addition to the market, the electric supermini combines modern technology with practical features, including advanced parking assistance. [3]
Completing the top three was the MG 3, the second most affordable petrol-powered car in the study, costing an estimated £8,630 per year to run.
The top 20 cheapest cars to run in the UK
| Rank | Brand | Model | Engine type | Annual Fuel cost | Annual Maintenance | Annual Insurance | Annual Road Taxes* | Annual Finance Charges | Annual Running Cost |
| 1 | Dacia | Sandero | Petrol | £2,382 | £170 | £626 | £200 | £4,337 | £7,715 |
| 2 | Renault | 5 | Electric | £655 | £170 | £646 | £200 | £6,314 | £7,985 |
| 3 | MG | 3 | Petrol | £2,382 | £170 | £738 | £200 | £5,139 | £8,630 |
| 4 | Vauxhall | Corsa | Petrol | £2,382 | £170 | £639 | £200 | £5,801 | £9,192 |
| 5 | Omoda | 5 | Petrol | £2,382 | £170 | £822 | £200 | £5,887 | £9,461 |
| 6 | Peugeot | 208 | Petrol | £2,382 | £170 | £838 | £200 | £6,025 | £9,615 |
| 7 | MG | ZS | Petrol | £2,382 | £170 | £965 | £200 | £6,021 | £9,737 |
| 8 | Volkswagen | Polo | Petrol | £2,382 | £170 | £688 | £200 | £6,479 | £9,919 |
| 9 | Renault | Captur | Petrol | £2,382 | £170 | £715 | £200 | £6,608 | £10,075 |
| 10 | Nissan | Juke | Petrol | £2,382 | £170 | £744 | £200 | £7,128 | £10,625 |
| 11 | Peugeot | 2008 | Petrol | £2,382 | £170 | £747 | £200 | £7,860 | £11,359 |
| 12 | Toyota | Yaris Cross | Hybrid | £2,382 | £170 | £674 | £200 | £8,018 | £11,445 |
| 13 | Ford | Puma | Hybrid | £2,382 | £170 | £764 | £200 | £7,974 | £11,490 |
| 14 | Hyundai | Kona | petrol | £2,382 | £170 | £854 | £200 | £8,011 | £11,617 |
| 15 | MG | HS | Petrol | £2,680 | £210 | £772 | £200 | £7,783 | £11,644 |
| 16 | Kia | EV3 | Electric | £655 | £170 | £1,193 | £200 | £9,691 | £11,908 |
| 17 | MINI | Cooper | Petrol | £2,382 | £170 | £841 | £200 | £8,435 | £12,028 |
| 18 | Volvo | EX30 | Electric | £800 | £170 | £1,260 | £200 | £9,712 | £12,142 |
| 19 | Skoda | Elroq | Electric | £857 | £210 | £1,014 | £200 | £9,979 | £12,260 |
| 20 | Volkswagen | Golf | Petrol | £2,680 | £210 | £823 | £200 | £8,493 | £12,405 |
*Based on second year prices
Cars with the highest lifetime depreciation
The study also examined which vehicles lose and retain the most value over time, both within the first year of ownership and across their overall lifespan.
Research suggests that most new cars lose between 15% and 35% of their value in the first year alone, leaving owners with around 65% to 85% of the original value remaining. Over a typical lifespan of eight to 10 years, however, a vehicle can lose as much as 80% of its value.
Despite this depreciation, the UK’s used car market continues to thrive. In fact, more than two million used car transactions took place in the first quarter of 2026 alone. [4]
Our findings revealed that the BMW i4 not only ranked as the most expensive car to run, but also recorded the highest depreciation levels in the study. The vehicle was estimated to lose £17,881 in value during its first year of ownership and a total of £39,339 across its lifetime.
The Audi Q6 e-tron and Land Rover Defender followed closely behind, recording first-year depreciation figures of £15,329 and £14,314 respectively. Importantly, three of the five vehicles with the highest depreciation levels were electric cars.
At the opposite end of the rankings was the Dacia Sandero, which not only had the lowest depreciation levels but was also the cheapest car overall to run. The Sandero was estimated to lose £3,691 in the first year and £8,121 across its lifetime, retaining almost half of its original purchase price (£14,765).
Interestingly, every vehicle with the top five lowest depreciation levels in the study was petrol-powered. Despite this, research suggests that demand for electric vehicles is rising and this will help to boost their long-term value. And with the UK’s ban on new petrol and diesel car sales expected to come into force in 2035, experts predict petrol fuelled vehicles could depreciate in value further. [5]
The cars with the highest and lowest depreciation levels
| Which cars have the highest depreciation levels? | ||||||
|---|---|---|---|---|---|---|
| Rank | Brand | Model | Engine type | Purchase price (new) | First year depreciation | Lifetime depreciation (8-10 years) |
| 1 | BMW | i4 | Electric | £71,525 | £17,881 | £39,339 |
| 2 | Audi | Q6 e-tron | Electric | £61,315 | £15,329 | £33,723 |
| 3 | Land Rover | Defender | Petrol or diesel | £57,255 | £14,314 | £31,490 |
| 4 | BMW | X1 | Petrol | £52,565 | £13,141 | £28,911 |
| 5 | Audi | Q4 e-tron | Electric | £47,355 | £11,839 | £26,045 |
| Which cars have the lowest depreciation levels? | ||||||
|---|---|---|---|---|---|---|
| Rank | Brand | Model | Engine type | Purchase price (new) | First year depreciation | Lifetime depreciation (8-10 years) |
| 1 | Dacia | Dacia Sandero | Petrol | £14,765 | £3,691 | £8,121 |
| 2 | MG | MG 3 | Petrol | £17,495 | £4,374 | £9,622 |
| 3 | Vauxhall | Vauxhall Corsa | Petrol | £19,749 | £4,937 | £10,862 |
| 4 | Omoda | Omoda 5 | Petrol | £20,040 | £5,010 | £11,022 |
| 5 | MG | MG ZS | Petrol | £20,495 | £5,124 | £11,272 |
Methodology
The data for this study was collected in April 2026. The vehicle sample was built using a seed list of 50 popular and best-selling cars to ensure the dataset reflects the wider UK car market. Models were identified using the following sources:
- https://www.dacemotorgroup.co.uk/blog/top-20-best-selling-cars-of-all-time
- https://www.smmt.co.uk/vehicle-data/car-registrations/
- https://www.carcondor.co.uk/top-100-uk-used-car-models-sales
Duplicate models were removed, and vehicles were standardised by manufacturer and generation where needed to ensure consistency. The final dataset includes petrol, hybrid, and fully electric vehicles.
Manufacturer Recommended Retail Price (MRRP) data was taken directly from official manufacturer websites. Where multiple trims were available, a mid-range version was selected to allow fair comparison across models.
Cost calculations
Prices were recorded at the time of data collection and are subject to change based on market conditions, promotional offers, and specification changes.
Finance costs were calculated using a standard loan formula that estimates monthly repayments based on the loan amount (MRRP), interest rate, and loan term. A 48-month term was used to reflect typical UK car finance agreements, supported by industry data.
Fuel costs were calculated using a standardised per-mile approach, based on an average UK petrol price of 157.2p per litre, sourced from the UK fuel price index and alongside vehicle efficiency measured in miles per kwh:
- Cost per mile (pence) = (Litres consumed × Fuel price per litre) ÷ Miles travelled
- Annual fuel cost (£) = (Cost per mile × Average annual mileage) ÷ 100
Other running costs were estimated using established market data:
- Maintenance costs based on average figures for each vehicle type and age
- Depreciation based on used-car valuation and residual value data
- Insurance based on UK insurance group ratings and average premiums by category
- Road tax based on official Gov.uk data, based on second year prices
Caveats:
- Petrol variants were used where engine type was not specified, as they are most common in the UK
- Standard driving conditions and annual mileage were applied across all vehicles for consistency
- Mid-range trims were used, which may not represent entry-level or top-spec versions
Sources
[1] Department for Transport, ‘NTS 2024: Household car availability and trends in car trips’, 2025
[2] BBC News, ‘Inflation falls to 2.8% but is expected to rise from here’, 2026
[3] Renault, ‘RENAULT 5 E-TECH ELECTRIC: R5VOLUTION’,
[4] SMMT, ‘UK Used Car Sales Data’, 2026
[5] Octopus Energy, ‘Electric vehicles vs. petrol and diesel cars: What are the hidden costs?’, 2025
Lead image photo credit – iStock.com pixelfit
This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.