Running a car as a young driver


Learn how to keep key car running costs down with our useful tips

Money Advice Service

After housing costs, a car is probably one of the most expensive things that you’ll pay for as a young adult. We look at the key costs involved in running a car and give some useful tips on how to try to keep them down.

What you must have by law

There are a few things you must have by law before you begin to drive your car on the road:

  • Insurance – see our guide Car insurance for young drivers for more details.
  • Road tax – the amount of road tax you pay depends on either your engine size (older cars) or the emissions of your car (newer cars). The lower the engine size or emissions, the lower the road tax. Road tax can be paid for either six or 12 months. Although the yearly option costs more upfront, it’s cheaper than buying two six-month options. You’ll also receive a tax disc which you must display in your car windscreen.  

Use the road tax calculator to work out how much you might need to pay

  • MOT – this stands for Ministry of Transport, and is a yearly test for all cars over three years old to make sure the car is safe and roadworthy. The standard cost set by the government is £54.85 for a car. This means that garages can’t charge more than this to carry out the test, but you may find that some garages offer MOTs for less, so it’s worth looking around. 

Compare the costs of different MOT centres near you on the MoneySavingExpert website

Other big car costs 

Petrol or diesel

Top tips on reducing your fuel costs include:

  • Consumption – consider the fuel consumption of any car you’re looking to buy. The bigger the engine, the more fuel it will use in general. 
  • Careful driving – being a little more gentle in accelerating and not driving quite as fast can reduce the amount of fuel you use significantly. 
  • Heavy items – don’t leave heavy things in the car if you don’t need them to be there, and take off roof racks if you’re not using them. The heavier the car, the more fuel it will use. 
  • Shopping – supermarkets often have very competitive fuel prices, and you can sometimes build up reward points to spend on other shopping.

Compare the cost of fuel in your area on

Servicing and maintenance 

Motor company the RAC says that it costs around £472 to maintain a used car over the course of a year. This includes getting the MOT, and any servicing and repairs required. For a monthly fee, a used car warranty will cover certain repairs on your car, and may even include a service and MOT once a year. If you decide to take out a warranty, make sure you’re clear on what it covers and what it doesn’t.

Breakdown cover

The chances are that most drivers have experienced at least one breakdown. Breakdown cover ranges from simply having an engineer take a look at your car at the roadside, to having the car picked up anywhere in Europe with a courtesy car to continue you on your journey. Naturally, the higher the level of cover, the more it costs. Make sure you check what’s included in each level of cover and choose the one that best meets your needs.


One of the biggest costs when owning a car is the loss of value of the car over time – this is called depreciation. Brand new cars lose their value faster than used cars as they are more expensive to begin with. When you buy a car, think about what it might be worth in a few years’ time – you might be able to see the price of older cars the same make as yours on a car sales website.

Read our guide for more tips on how to cut your car and other travel costs

This article is provided by the Money Advice Service.


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