MOT and service costs: what it really costs to run a car
The price of a car is only part of the story. MOTs, servicing, insurance, tax, and fuel all add up over a year, and underestimating these costs is one of the most common reasons people find a car harder to afford than expected. This guide covers what MOTs and servicing typically cost, what else to budget for, and how to plan these costs alongside a car finance payment.
Every car over three years old needs an annual MOT test, which checks the car meets the legal standards for roadworthiness, emissions, and safety. The maximum fee a garage can charge for a car MOT is set by law, currently £54.85, though many garages charge less, and prices can vary by area and by garage.
The MOT fee itself is only part of the cost. If the car fails, any repairs needed to pass are charged separately, and these can range from very minor (a bulb costing a few pounds) to significant if something like brakes, tyres, or suspension components need replacing. Booking the MOT alongside a service often means any issues are spotted and quoted for together, sometimes with a discount on labour for doing both at once.
An interim service is a shorter check, typically recommended every 6 months or 6,000 miles for cars doing higher mileage. It covers the essentials: an oil and filter change, and a check of fluid levels, tyres, brakes, lights, and other safety items. It is quicker and cheaper, typically £80 to £150, designed to keep the car running safely between full services.
A full service is more thorough and is the one most cars need annually, or every 12,000 miles. Alongside everything in an interim service, it includes additional checks and replacement of items like air filters, pollen filters, and spark plugs, following a checklist based on the car's age and mileage. A full service typically costs £150 to £300.
A common approach for cars covering average mileage is one full service a year, with an interim service partway through the year if the car does higher mileage or if it has been a while since the last check. Your car's handbook or service schedule will set out what the manufacturer recommends for your specific model.
Most manufacturers recommend a service every 12 months or 10,000 to 12,000 miles, whichever comes first. Cars doing low annual mileage still need an annual service even if they are well under the mileage threshold, since some checks (fluids, brakes, tyres) are time based as well as mileage based.
Sticking to the recommended service schedule matters for more than just keeping the car running well. A documented service history is one of the biggest factors in a car's resale value, and can affect whether a manufacturer warranty remains valid on newer cars.
Larger or more complex services on bigger engines, or services that include specific scheduled items like a timing belt or brake fluid change, can cost more than the typical ranges above, sometimes significantly if a timing belt replacement is due.
Main dealer servicing tends to cost more than an independent garage, sometimes significantly, though it can matter for maintaining a manufacturer warranty on newer cars. For most used cars, particularly anything outside the manufacturer warranty period, an independent garage with good reviews is often a more cost effective choice without compromising on quality.
Beyond MOT and servicing, the ongoing costs of running a car include:
| Cost | Typical range | Notes |
| MOT | £0 to £54.85 | Free at some garages if combined with a service. Repairs for any failures are additional. |
| Servicing | £80 to £300/year | Depends on service type (interim vs full) and whether you use a dealer or independent garage. |
| Insurance | Varies widely | Depends heavily on the car's insurance group, your age, and driving history. |
| Road tax (VED) | £0 to £600+/year | Depends on the car's emissions and age. Electric cars currently pay reduced or no VED in some cases. |
| Fuel | Varies by mileage | The single biggest variable cost for most drivers, dependent on mileage and the car's fuel economy. |
| Tyres | £200 to £600/set | Needed roughly every 20,000 to 40,000 miles depending on the car and driving style. |
If insurance is a particular concern, especially for newer drivers, our guide on cheapest cars to insure for new drivers covers how insurance groups work and what affects your premium.
If you are financing a car, your monthly finance payment is fixed and predictable, but running costs are not. MOTs and services happen once a year, insurance is often an annual lump sum even if paid monthly, and fuel costs vary with how much you drive. Building a rough monthly figure for these costs, even if some of them are actually paid annually, gives you a more realistic picture of what the car costs you overall, not just the finance payment.
A simple way to do this is to take your expected annual costs for insurance, tax, servicing, and an MOT, add them together, and divide by twelve. Adding this figure to your monthly finance payment gives you a more honest "total monthly cost of the car" than the finance payment alone.
Use our car finance calculator to work out your finance payment, then add your estimated running costs on top to see the fuller picture before you commit to a specific car.
Significantly. Two cars priced similarly to buy can have very different running costs depending on their insurance group, fuel economy, tax band, and how expensive parts and labour are for that make and model. A slightly cheaper car to buy is not always cheaper to own once these factors are added up.
Our guide on the best second-hand cars to buy on finance covers what kind of car suits different budgets, including how to think about running costs alongside the purchase price and finance payment together.
If running costs unexpectedly increase, a major repair bill, a jump in insurance at renewal, or rising fuel prices, and this puts pressure on your overall budget including your finance payment, it is worth addressing this early rather than letting it build up. Speaking to your lender about your situation before missing a payment generally leads to more options than waiting until you are already behind.
If you are genuinely struggling with payments, our guide on voluntary surrender of car finance covers your options, including free debt advice services.
AutoMoney Trust offers hire purchase finance from £4,000 to £25,000 over 36 to 84 months with no deposit required. We consider applications from people with poor credit. The initial check is a soft search that will not affect your credit file. Check your eligibility on our apply for car finance page.
Fully comprehensive insurance is required throughout your finance agreement with AutoMoney Trust, because the vehicle legally belongs to us until your final payment is made. Comprehensive cover protects both you and the lender against damage, theft, fire, and accidents, ensuring the asset is protected for the full term. It is typically more expensive than third party or third party fire and theft cover, so factor this into your monthly running costs when budgeting. Many drivers also consider GAP insurance, which covers the difference between an insurance write-off payout and the outstanding finance balance.
All cars depreciate over time, with most used vehicles losing value steadily across a finance agreement. This matters because by the end of your term, the total amount paid, including interest, may be more than the car's market value. Depreciation also affects negative equity risk: if you want to sell or settle early, the car's value may not cover the outstanding finance balance. Mileage, condition, service history, and demand all influence how quickly a car depreciates. GAP insurance can help cover the gap between a write-off payout and your outstanding finance.
Your loan term directly affects both your monthly payments and the total cost of borrowing. A longer term, such as 60 or 84 months, spreads the cost over more payments, lowering the monthly amount but increasing the total interest you pay across the agreement. A shorter term, such as 24 or 36 months, means higher monthly payments but a lower overall cost. AutoMoney Trust offers terms from 24 to 84 months, so you can balance monthly affordability against total cost. Use our finance calculator to compare different term lengths before applying.
A fixed rate keeps your interest rate and monthly payments the same throughout your agreement, giving you predictable costs from start to finish. A variable rate can rise or fall during the term, usually tracking the Bank of England base rate or the lender's standard variable rate, which means your payments can go up or down. AutoMoney Trust offers fixed interest rates only, so you know exactly what you will pay each month. Fixed rates provide certainty but may start slightly higher than introductory variable rates; the trade-off is protection from future rate rises. For more detail, read our guide to What Is Car Finance APR?.
