Although the recession has ended and inflation has slowed, cost pressures remain high in the UK. Our cars generally make life easier for us - they enable our daily commute and help us complete many essential tasks. Of all annual household costs, owning a car is one of the most expensive. 

Almost half of Brits (46%) have less than £1,000 in savings, making the outright purchase of a car unlikely for the majority of drivers. This cost of purchasing a car outright, alongside other costs of ownership such as maintenance, insurance and fuel makes running a car unattainable for many Brits.

Working with our partner Aro, Asda Money analysed seven factors of car ownership across every UK region to find out how much it costs to run a car in each place. The study considers the average weekly spend of a new car or used vehicle, fuel cost, repairs, and insurance cover.  

Brits spend £3,784.05 on average running a car in the UK

Our analysis revealed Brits typically spend almost £3,784.05 on running a car in the UK. 

When taking a deeper look, our research reveals that fuelling your car costs typically £889.20 per year but there are plans for this to rise as much as 14% in October 2024. Car maintenance costs, including MOT, repairs and servicing set drivers back £364 each year. The analysis found that insuring your car has risen as much as 34% since 2022, despite dropping quarter-by-quarter since the start of 2024.

Our analysis found that on average, British drivers will spend 11% of their annual wage on owning and running a vehicle. 

The most affordable regions to own a car outright

Our research reveals that drivers in the North East pay the least when it comes to owning a vehicle overall. In total, the annual average costs £2,852.59 and a weekly premium of £54.86, with 36% of this cost spent on vehicle purchase. The overall price of running a vehicle in the North East is 32% less expensive than the most expensive region, and 25% cheaper than the UK average. 

Typically, workers in the North East earning the average regional salary will spend 9% of their yearly wage on running their car. with the average wage coming in as £31,200. 

Our analysis also found that those relying on public transport typically save over £2,000 each year (£2,145.39).

The weekly cost to run a car in every UK region

Our research shows that Scotland ranks as the second most affordable region for car ownership in the UK, with an annual cost of £3,463.01 and a weekly expense of £66.60. A typical breakdown reveals that paying for a vehicle outright costs £27.30 per week, while maintenance including paying for MOTs, servicing and repairs, and general upkeep - adds another £26.30 per week.

With an average annual wage of £35,518 - making it one of the best-paid regions in the UK - workers in Scotland spend about 10% of their salary on running a car.

London ranks as the third most affordable region for car ownership, with annual costs averaging £3,518.54 - or £67.66 per week. Our breakdown of costs shows that owning a car outright in London typically costs £25.20 per week, while insurance adds £24.56.

The most expensive regions to own a car

Our research finds that drivers in the East Midlands are likely paying the most when it comes to running a vehicle. In total, owning a car costs drivers £4,196.53 per year or £80.80 per week - that’s 11% more expensive than the UK average. East Midlands has typically higher costs for car insurance, maintenance and purchasing overall.

Concerningly, East Midlands ranks as the most expensive region to own a car - but has one of the lowest average annual salaries in all of the UK (£31,634). This means that East Midlands drivers typically pay 13% of their annual salary on car ownership. 

Our research shows that drivers in the South East are paying the second most expensive premium to own a car, with an annual cost of £4,157.46, or £79.95 per week. Despite having the second-highest average salary in the UK (£36,560), drivers in the South East still spend a significant 11% of their annual earnings on owning a vehicle. The region also has the highest costs for public transport, with commuters paying £967.20 per year, adding to the overall expense of getting around.

What other options do I have if I can’t purchase a vehicle outright?

Research conducted by Asda Money concludes that car ownership is a non-negotiable financial commitment for many drivers in the UK - one that is made more difficult when faced with rising costs for fuel and insurance. Not everyone has the means to purchase a vehicle outright - especially when the purchase of a new or used vehicle outright has risen 7% since 2020. By spreading the cost of the car over manageable, monthly payments, car loans help make vehicle ownership more affordable and accessible for a wider range of people. This allows drivers to stay on top of their budgets while still benefiting from the convenience of owning a car without having to drain their savings all at once.