Car running costs

Your guide to how we calculate car running costs

The figures in our tables will not be exactly the same as your own costs

The figures in our tables will not be exactly the same as your own costs

If you're interested in how we arrive at the figures shown in the tables you can find out here. We use several different sources of information and make a number of assumptions.

Remember that everyone's experience is different. The figures in our tables will not be exactly the same as your own costs but they will give you a good idea of what to take into account and how to go about estimating your own running costs if you want to.

Claiming mileage

How much your employer will give you for using your own car for company business depends on the employer and is a matter for negotiation as circumstances vary. The Inland Revenue operates an Approved Mileage Allowance Payment (AMAP) system.

Prices in our tables include VAT.

Contact your tax office or visit Advisory fuel rates for company cars, and HM Revenue and Customs - mileage expenses for more information.

Standing charges

The letters correspond to those in the left-hand column of the petrol and diesel running costs tables.

A. Car tax (VED)

The value shown assumes that the car was first registered after March 2001 and is the average for the cars considered in each price group.

More about car tax and CO2 emissions.

B. Insurance

The value used is a UK average for a fully comprehensive policy with 60% no-claims discount.

C. Cost of capital

The figures in the table represent the income you lose from having money tied up in the vehicle, which otherwise could be earning interest in a deposit account. This year we used the AA's online saving rate of 2.8% together with the average value for the cars chosen for each cost group.

Any further admin charges for a loan or hire purchase will be on top of this.

D. Depreciation

Cars lose value at different rates depending on their make, age, mileage and condition. We assume that depreciation costs are averaged over four years from purchase, and include typical adjustments for different annual mileages in that period. Cars generally depreciate at a slower rate as they get older.

We use different depreciation rates for mileages which differ from the average 10,000 miles/year.

E. Breakdown cover

The figure shown is based on the cost of Roadside annual vehicle based cover.

Running costs

F. Fuel

We use the UK average value from our fuel price report.

The fuel consumption figures we use are estimated typical values for each of the car price bands shown in the tables.

G. Tyres

We assume an average tyre life of 27,000 miles. Different values for the cost of tyre replacement are used depending on the vehicle size and price band.

Tyre prices are based on online tyre dealer prices. We don't use main dealer prices which will inevitably be higher.

H. Service and labour costs

The labour costs shown cover normal servicing and parts replacement at a dealer, taking average UK labour rates. Actual labour rates vary a lot depending on where in the country you are as well as from brand to brand.

I. Replacement parts

The replacement parts included cover those likely to be needed under normal driving conditions, such as brake materials, oils, filters, bulbs, wipers, and hoses.

J. Parking and tolls

Car parking and toll payments are based on a national average for an urban driver. You might pay more or less depending on how much and where you use your car.

AA running costs 2011/12 (pdf)

Petrol cars

AA running costs 2011/12 (pdf)

Diesel cars

(21 November 2011)

 

Running costs archive

Select fuel & year

Select fuel & year