It’s no secret that owning a car can be a big financial commitment. Beyond the cost of simply purchasing your dream car and any associated car finance payments, motorists also need to budget for all the other running costs that come with owning a vehicle.
With two-thirds of motorists (69%) agreeing that car ownership is getting more expensive,1 we wanted to understand how your location might impact car-related costs and find out just how much everything from insurance and fuel costs to regular servicing and an MOT can vary between cities.
To do this, we analysed the major UK cities to find out which is the cheapest overall for motorists. We chose to compare the average cost of fuel, the cost of insurance for a young driver, typical servicing costs and the price of getting an MOT to give us a clearer view of how much it really costs to own a car in each of these cities. We specifically looked at the cost of young driver insurance as it is typically the highest premium motorists will pay.
Take a look at what we found below – how does your city compare?
The cheapest UK cities for drivers
| # | City | Region | Typical Fuel Price (per litre) | Car Insurance Average (18-24 y/o) | Typical Service Cost | Typical MOT Cost | Points Score Total (/100) |
| 1 | Plymouth | South West | £1.42 | £1,714.21 | £132.00 | £28.00 | 93 |
| 2 | Durham | North East | £1.43 | £1,966.55 | £135.00 | £30.00 | 86 |
| 3 | Belfast | Northern Ireland | £1.45 | £1,359.12 | £152.00 | £38.00 | 81 |
| 4 | Derry | Northern Ireland | £1.49 | £1,359.12 | £155.00 | £28.00 | 81 |
| 5 | Derby | East Midlands | £1.42 | £1,964.62 | £192.00 | £30.00 | 79 |
| 6 | Exeter | South West | £1.42 | £1,714.21 | £192.00 | £35.00 | 78 |
| 7 | Norwich | East | £1.43 | £2,030.26 | £160.00 | £34.00 | 77 |
| 8 | Inverness | Scotland | £1.43 | £1,907.56 | £199.00 | £30.00 | 77 |
| 9 | Leicester | East Midlands | £1.44 | £1,964.62 | £186.00 | £29.00 | 77 |
| 10 | Stoke-on-Trent | West Midlands | £1.42 | £2,392.30 | £175.00 | £28.00 | 77 |
Cheapest cities in England for motorists
According to our research, Plymouth is the cheapest city for motorists not only in England but across the whole of the UK. With a seven-point lead on second-place Durham – the research suggests that regionality is less important to the cost of driving than specific city locations.
- Plymouth
- Durham
- Derby
- Exeter
- Norwich
- Leicester
- Stoke-on-Trent
- Sheffield
- Lincoln
- Sunderland
Unsurprisingly, London was the most expensive city for motorists in the whole of the UK. Young drivers in London could expect to pay £2,811.38 on average for their insurance – almost £700 more than the national average.
Cheapest cities in Scotland for motorists
We found that motorists in Inverness paid less to stay on the road than motorists in other parts of Scotland. More rural than other cities in Scotland, we wouldn’t have expected car owners in Inverness to benefit from some of the lowest fuel costs across the country – but according to our research, they do. Servicing costs in the city were at the higher end of the scale at £199 on average.
Surprisingly, Scotland’s capital ranked second. Despite being known for having more expensive living costs than other parts of the country, motorists in Edinburgh don’t seem to be disproportionately impacted.
- Inverness
- Edinburgh
- Glasgow
- Perth
- Stirling
- Dunfermline
- Dundee
- Aberdeen
Unfortunately for young drivers in Scotland, insurance premiums tended to be higher than for other regions in the UK – coming out at £1,907.56 on average, 4% higher than in Wales and a whopping 29% higher than the average cost in Northern Ireland. The only region with higher average insurance fees is England, where young motorists can expect to spend £2,117.29 on average.
Cheapest cities in Wales for motorists
Good news for motorists in both Swansea and Newport, as they were found to both be equally as cheap for motorists – scoring towards the lower end of the scale for fuel costs and offering affordable MOTs.
Although fuel prices in Newport were 2p a litre cheaper than in Swansea, motorists could expect to spend £17 more on average for servicing costs. In general, Wales tended to benefit from lower fuel prices in general.
- Swansea
- Newport
- Wrexham
- Bangor
- Cardiff
Cheapest cities in Northern Ireland for motorists
Northern Ireland has the cheapest car insurance premiums for younger drivers across the UK – with an average yearly cost of £1,359.12.
Our research revealed that Derry and Belfast were the cheapest cities for car ownership in Northern Ireland – and came in at position three and four in the UK ranking.
- Derry
- Belfast
- Newry
- Lisburn
Cost of driving in all cities
| City | Region | Typical Fuel Price (per litre) | Car Insurance Average (18-24 y/o) | Typical Service Cost | Typical MOT Cost | Points Score Total (/100) |
| Plymouth | South West | 1.42 | 1714.21 | 132.00 | 28.00 | 93 |
| Durham | North East | 1.43 | 1966.55 | 135.00 | 30.00 | 86 |
| Derry | Northern Ireland | 1.49 | 1359.12 | 155.00 | 28.00 | 81 |
| Belfast | Northern Ireland | 1.45 | 1359.12 | 152.00 | 38.00 | 81 |
| Derby | East Midlands | 1.42 | 1964.62 | 192.00 | 30.00 | 79 |
| Exeter | South West | 1.42 | 1714.21 | 192.00 | 35.00 | 78 |
| Inverness | Scotland | 1.43 | 1907.56 | 199.00 | 30.00 | 77 |
| Leicester | East Midlands | 1.44 | 1964.62 | 186.00 | 29.00 | 77 |
| Stoke-on-Trent | West Midlands | 1.42 | 2392.30 | 175.00 | 28.00 | 77 |
| Norwich | East | 1.43 | 2030.26 | 160.00 | 34.00 | 77 |
| Sheffield | Yorkshire and the Humber | 1.43 | 2327.01 | 175.00 | 30.00 | 74 |
| Newry | Northern Ireland | 1.45 | 1359.12 | 255.00 | 30.00 | 73 |
| Glasgow | Scotland | 1.46 | 1907.56 | 162.00 | 34.00 | 73 |
| Lisburn | Northern Ireland | 1.48 | 1359.12 | 162.00 | 38.00 | 73 |
| Edinburgh | Scotland | 1.48 | 1907.56 | 124.00 | 34.00 | 73 |
| Bradford | Yorkshire and the Humber | 1.43 | 2327.01 | 189.00 | 28.00 | 72 |
| Sunderland | North East | 1.46 | 1966.55 | 180.00 | 31.00 | 72 |
| Doncaster | Yorkshire and the Humber | 1.42 | 2327.01 | 173.00 | 34.00 | 72 |
| Lincoln | East Midlands | 1.46 | 1964.62 | 152.00 | 35.00 | 72 |
| Newport | Wales | 1.43 | 1835.09 | 212.00 | 35.00 | 70 |
| Salisbury | South West | 1.42 | 1714.21 | 199.00 | 43.00 | 70 |
| Nottingham | East Midlands | 1.44 | 1964.62 | 195.00 | 35.00 | 70 |
| Swansea | Wales | 1.45 | 1835.09 | 188.00 | 35.00 | 70 |
| Perth | Scotland | 1.46 | 1907.56 | 142.00 | 40.00 | 70 |
| Wrexham | Wales | 1.46 | 1835.09 | 213.00 | 30.00 | 69 |
| Portsmouth | South East | 1.42 | 2105.06 | 211.00 | 35.00 | 69 |
| Lancaster | North West | 1.43 | 2297.97 | 210.00 | 30.00 | 68 |
| Canterbury | South East | 1.44 | 2105.06 | 199.00 | 34.00 | 68 |
| Dunfermline | Scotland | 1.43 | 1907.56 | 195.00 | 40.00 | 68 |
| Preston | North West | 1.42 | 2297.97 | 193.00 | 35.00 | 68 |
| York | Yorkshire and the Humber | 1.42 | 2327.01 | 187.00 | 37.00 | 68 |
| Wakefield | Yorkshire and the Humber | 1.43 | 2327.01 | 186.00 | 34.00 | 68 |
| Gloucester | South West | 1.49 | 1714.21 | 176.00 | 32.00 | 68 |
| Stirling | Scotland | 1.47 | 1907.56 | 144.00 | 38.00 | 68 |
| Chester | North West | 1.43 | 2297.97 | 207.00 | 32.00 | 67 |
| Kingston upon Hull | Yorkshire and the Humber | 1.44 | 2327.01 | 174.00 | 35.00 | 67 |
| Guildford | South East | 1.44 | 2105.06 | 229.00 | 31.00 | 66 |
| Bangor | Wales | 1.43 | 1835.09 | 215.00 | 38.00 | 66 |
| Carlisle | North West | 1.43 | 2297.97 | 207.00 | 33.00 | 66 |
| Birmingham | West Midlands | 1.46 | 2392.30 | 185.00 | 30.00 | 66 |
| Dundee | Scotland | 1.43 | 1907.56 | 200.00 | 45.00 | 63 |
| Chelmsford | East | 1.44 | 2030.26 | 233.00 | 36.00 | 62 |
| Milton Keynes | South East | 1.44 | 2105.06 | 209.00 | 38.00 | 62 |
| Bath | South West | 1.47 | 1714.21 | 195.00 | 40.00 | 62 |
| Bournemouth | South West | 1.48 | 1714.21 | 189.00 | 38.00 | 62 |
| Wolverhampton | West Midlands | 1.46 | 2392.30 | 181.00 | 35.00 | 62 |
| St Albans | East | 1.48 | 2030.26 | 217.00 | 30.00 | 61 |
| Colchester | East | 1.46 | 2030.26 | 201.00 | 39.00 | 61 |
| Hereford | West Midlands | 1.49 | 2392.30 | 150.00 | 33.00 | 61 |
| Peterborough | East | 1.44 | 2030.26 | 241.00 | 36.00 | 60 |
| Worcester | West Midlands | 1.46 | 2392.30 | 213.00 | 33.00 | 59 |
| Manchester | North West | 1.46 | 2297.97 | 188.00 | 37.00 | 59 |
| Liverpool | North West | 1.46 | 2297.97 | 203.00 | 36.00 | 57 |
| Aberdeen | Scotland | 1.47 | 1907.56 | 200.00 | 41.00 | 57 |
| Ripon | yorkshire and the Humber | 1.45 | 2327.01 | 194.00 | 40.00 | 57 |
| Coventry | West Midlands | 1.46 | 2392.30 | 192.00 | 40.00 | 55 |
| Reading | South East | 1.48 | 2105.06 | 230.00 | 34.00 | 54 |
| Cardiff | Wales | 1.49 | 1835.09 | 209.00 | 38.00 | 54 |
| Brighton | South East | 1.49 | 2105.06 | 220.00 | 35.00 | 53 |
| Bristol | South West | 1.48 | 1714.21 | 237.00 | 42.00 | 52 |
| Southampton | South East | 1.47 | 2105.06 | 210.00 | 41.00 | 52 |
| Truro | South West | 1.46 | 1714.21 | 228.00 | 50.00 | 50 |
| Ely | East | 1.42 | 2030.26 | 225.00 | 55.00 | 50 |
| Chichester | South East | 1.48 | 2105.06 | 222.00 | 39.00 | 50 |
| Winchester | South East | 1.49 | 2105.06 | 205.00 | 40.00 | 50 |
| Newcastle upon Tyne | North East | 1.46 | 1966.55 | 180.00 | 55.00 | 50 |
| Cambridge | East | 1.48 | 2030.26 | 225.00 | 46.00 | 45 |
| Leeds | Yorkshire and the Humber | 1.53 | 2327.01 | 187.00 | 35.00 | 45 |
| Southend-on-Sea | East | 1.53 | 2030.26 | 230.00 | 40.00 | 38 |
| Oxford | South East | 1.52 | 2105.06 | 286.00 | 36.00 | 35 |
| London | Greater London | 1.52 | 2811.38 | 224.00 | 50.00 | 19 |
Tips for reducing your monthly car costs
No matter where you live, motorists should be making sure that they aren’t overpaying for driving-related expenses to help keep running costs as low as possible. To help with this, we’ve pulled together some of our top tips:
Shop around for insurance
When renewing your car insurance, make sure to shop around and compare prices a few weeks before your renewal date rather than just letting your insurance auto-renew. In many cases, the price offered by your current insurer isn’t the most competitive.
With research suggesting that the best time to buy car insurance is around three weeks before you need to renew, spending a little bit of time shopping around could save you hundreds of pounds each year.2 If you can afford it, paying your car insurance upfront at the start of the year can also avoid any additional interest that you’d need to pay on top of your insurance premium.
Be selective with what finance agreement you opt for
When it comes to purchasing a car, there are a number of different payment methods for you to consider. Paying for your car outright is the easiest way to avoid paying any interest but isn’t a realistic option for many motorists.
For car finance, the two most popular options are Hire Purchase (HP) and Personal Contract Purchase (PCP). While both have their benefits, it’s important to make sure you are going for the option that is best for your needs and that you are checking you’re opting for the best agreement terms you can.
With Hire Purchase (HP) you’ll pay back the full value of your vehicle over your finance agreement, so you’ll own your car outright at the end. HP has higher monthly payments than Personal Contract Purchase (PCP) finance, where you only pay off a portion of a car’s value within the agreement and have an optional final payment to pay or refinance at the end if you want to keep the car.
If you like to change your car every few years and want to make your monthly budget go further, PCP is a great option. It helps keep your monthly payments as low as possible and allows you to roll any positive equity into a new PCP agreement when your current one ends.
However, if you plan to keep your vehicle long-term and own it outright, HP will have a lower total cost in exchange for a higher monthly payment. Read our guides on both PCP and HP to compare each finance option and decide what would work best for you.
Maintain your car to reduce repair costs
Keeping your car in good health can lead to less unexpected repairs in the long run. You should make sure you are getting your car serviced in line with the manufacturer’s recommendations and not ignoring any warning lights or signs of disrepair which could get worse.
Look for fuel-efficient cars
Fuel-efficient cars can save you a decent amount in the long term, as they maximise the fuel you put in to give you more value for your money. They may have smaller engines, but this can be worth it to keep your monthly running costs down.
Looking for your next car? Take a look at our car finance options onsite.
Methodology:
All major UK cities were used for this research. Carrying out extensive desk research, we used a range of data sources to compile our index:
- MOT & Servicing costs – FixMyCar and BookMyGarage
- Current fuel prices – Numbeo
- Car insurance premiums (average price by region) – Quotezone
Each category was scored relatively between their highest and lowest scores, where equal maximum points were awarded for each category (25 per category). The four category scores were combined to give us the overall index scores – the lower the cost, the more points awarded. This determined the total score on a 100 scale.
Fuel costs were averaged across both petrol and diesel prices. Where MOT prices are £55 this figure is rounded up from the legal maximum cost of £54.85. Service and MOT costs used were the average annual costs per motorist.
All data is correct as of August 2024.
- Research conducted by SurveyGoo on behalf of Motorpoint with a sample of 2,010 UK car owners, who had sold or changed their car in the last five years (since the start of 2018). Data was collected in September 2023. All statistics and findings have been rounded to the nearest whole number. A full data set is available on request.
- Research carried out by Money Saving Expert - https://www.moneysavingexpert.com/insurance/car-insurance/when-to-renew/
