Cars: the true cost

Lesson 5 of 13 in our free Big Purchases guide: a 5-minute money game with the key points below.

This lesson is in the full version.

Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Big Purchases is free for everyone.

Questions you'll answer

Mo's yearly costs: insurance £1,800, fuel £1,200, tax £200, MOT & servicing £300, parking £200. Total per year?

Which hidden cost do people forget most?

The car's price → One-off. Paid once (unless on finance).
Insurance → Ongoing. Every year — and it's huge for new drivers.
Fuel or charging → Ongoing. Every week.
Vehicle tax → Ongoing. Yearly or monthly.
MOT and servicing → Ongoing. In Great Britain, cars need an MOT every year once they're 3 years old (4 in Northern Ireland).