A broader view of tyres, MOT, servicing, repairs, insurance, tax, fuel or energy and depreciation.
The real cost of a car is much wider than fuel
For a useful monthly or annual budget, include acquisition/depreciation or lease/finance, insurance, tax, fuel or electricity, tyres, MOT, servicing, repairs, parking, breakdown cover and other costs that genuinely apply to your use.
Fixed and committed costs
Record finance or lease payments, insurance, vehicle tax where applicable, permits, subscriptions and breakdown cover. Annual bills should be divided into a monthly provision so they do not appear as surprises.
Usage-dependent costs
Fuel/charging, tyres and some maintenance depend heavily on mileage and driving conditions. Use your actual recent mileage and energy consumption where possible rather than a national-average assumption.
Maintenance reserve
Budget for scheduled servicing plus wear items such as tyres, brakes, wipers and the low-voltage battery. Older vehicles may justify a larger repair contingency. A current MOT does not remove the need for this reserve.
When comparing another vehicle
Use the same mileage, insurance basis and time period for both cars. Include one-off fees and realistic depreciation or end-of-contract costs. A lower monthly payment can be misleading if it requires a large initial payment or restrictive mileage allowance.
Lease, finance, hire, warranty and maintenance terms vary by provider and contract. Check the documents that apply to your vehicle before spending money or relying on general guidance.
What to do next
Gather the relevant contract, vehicle handbook, recent invoices and real mileage/cost figures. Compare like-for-like options over the same period rather than deciding from a headline monthly payment.