MOT and service costs: what it really costs to run a car
The price of a car is only part of the overall cost of ownership. Car running costs such as MOTs, servicing, insurance, tax, and fuel all add up over a year, and underestimating these car maintenance costs is one of the most common reasons people find a car harder to afford than expected.
Understanding car ownership costs before you buy can help you budget more accurately and avoid unexpected expenses. From routine servicing to annual MOT tests, these ongoing car running costs can have a significant impact on the overall cost of owning a vehicle.
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 overall costs of running a car includes several ongoing expenses:
| 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. If you're ready to start looking for a car, check your eligibility first with a soft credit search that won't affect your credit file to understand your budget.
Yes, if you finance your car with AutoMoney Trust, you'll need to maintain fully comprehensive insurance for the entire duration of your hire purchase agreement. This is because the vehicle remains the property of AutoMoney Trust until you've made your final repayment and ownership transfers to you.
Comprehensive car insurance provides protection against a range of situations, including accidental damage, theft, fire and third-party claims. Keeping the vehicle insured for the full duration of your agreement helps protect both you and the lender by ensuring the car remains covered throughout the finance term.
When budgeting for a financed car, it is important to consider insurance as part of your overall running costs. Fully comprehensive cover is often more expensive than third party or third party fire and theft insurance, so make sure you include this alongside your monthly finance payments, fuel, servicing, and other vehicle expenses.
Some drivers choose to consider GAP insurance, which can help cover the difference between your insurer's settlement value if the vehicle is written off and the remaining balance on your car finance agreement when the outstanding balance may be higher than the vehicle's market value.
Yes, your car is likely to lose value during the finance agreement. Most cars depreciate over time, meaning they gradually lose value as they age. For most used cars, depreciation continues throughout a Hire Purchase agreement, so the vehicle is typically worth less at the end of the finance term than when it was purchased.
Depreciation is important because the total amount payable on a car finance agreement includes the amount borrowed, interest, and any applicable fees. As a result, the total amount you repay over the agreement may be higher than the vehicle's market value by the time your finance ends.
Depreciation can also increase the risk of negative equity. If you decide to settle your car finance early or sell the vehicle before your agreement has ended, the car's current market value may be lower than the outstanding finance balance. In this situation, you may need to pay the difference before the agreement can be settled.
The rate at which a car depreciates depends on several factors, including its age, mileage, condition, service history, brand, model, and market demand. Keeping your vehicle well maintained and within reasonable mileage can help preserve its value over time, although depreciation cannot be avoided completely.
Some drivers also choose to take out GAP insurance, which may help cover the difference between an insurer's payout if the vehicle is written off and the remaining balance on the car finance agreement. This can provide additional financial protection particularly during the earlier years of a hire purchase agreement, when the outstanding finance may be higher than the vehicle's market value.
The length of your car finance agreement can have a significant impact on both your monthly payments and the total cost of borrowing. Choosing a longer finance term, such as 60 or 84 months, spreads the cost of the vehicle over a greater number of payments. This can make your monthly payments more affordable, but it may mean you pay more interest overall throughout the agreement.
A shorter car finance term, such as 36 months, usually results in higher monthly payments because the balance is repaid over a shorter period. However, paying the agreement off sooner can reduce the overall amount of interest paid, making it a potentially lower-cost option over the full term.
When choosing the right finance term, it is important to consider your budget, monthly affordability, and how long you plan to keep the vehicle. The best option is one that allows you to comfortably manage your payments without putting unnecessary pressure on your finances.
AutoMoney Trust offers car finance terms from 36 to 84 months, giving you flexibility to choose an agreement that suits your circumstances. Use our car finance calculator to compare different term lengths and understand how your monthly payments and overall costs could change before applying.
The main difference between fixed and variable car finance rates is whether the interest rate can change during your agreement. A fixed interest rate means your rate and monthly car finance payments stay the same throughout the finance term, giving you certainty over what you'll pay and making it easier to budget. In comparison, a variable interest rate can rise or fall over time, meaning your monthly payments may change.
AutoMoney Trust offers fixed-rate hire purchase car finance only, so you know exactly what your monthly repayments will be for the full term of your agreement. While fixed rates may sometimes be higher than an introductory variable rate, they provide protection against future interest rate rises and make it easier to plan your finances with confidence.
When comparing car finance options, it's important to consider not only the interest rate but also the APR, total amount payable, and the overall cost of borrowing. For more information read our guide on What Is Car Finance APR?.
