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How much does it cost to run a car for a year?

For most of us, a car is our first big purchase in life. But the cost of running a car is ongoing and runs into several thousand pounds a year. So online car insurance provider, elephant.co.uk has calculated the annual running costs for three motorists with different circumstances.

The total annual costs range between £1,504 for a small car with low annual mileage and £4,425 for a large car with high annual mileage. But if motorists are aware of the costs of running a car, they may be able to reduce them by hundreds of pounds a year.

costs such as petrol and parking, annual costs such as tax and insurance and also repair costs and servicing. It did not take into account loan repayments or depreciation in the value of the cars.

Managing director, Tanzie Oliver, said: "For most people a car is an essential part of life, but when you add up the annual running costs, they come as quite a shock.

"Although many of the costs associated with a car are unavoidable, there are some ways to save money. For instance reduce your mileage. You will not only lower your insurance premium, but also reduce wear and tear and fuel costs. Use car washes and valeting services less and wash your car yourself. And, of course, shop around for the cheapest insurance. It may sound obvious, but most motorists contact just two or three insurers at the time of their renewal".

The three example motorists all have different circumstances, and so their motoring costs vary. A car with a larger engine costs more to tax and it will be less economical with fuel. An older car will need an annual MOT, it may need repairing more often. Some drivers will have to pay congestion charges or parking fees, some will pay more for breakdown cover than others and all will pay a different amount for their car insurance.

All the examples below include one year's comprehensive insurance with elephant.co.uk.

Example 1 - Small car driver - 21-year-old female student living in Edinburgh driving a 1994 Ford Fiesta 1.1 LX, driving 5,000 miles a year.

Example 2 - Sports car driver - 30-year-old male accountant living in Reading driving a 2003 Mazda MX5 1.8I, driving 10,000 miles a year.

Example 3 - Large car driver - 40-year-old male doctor living in Richmond driving a 2003 BMW 323 2.5 Estate, driving 12,500 miles a year.