How Much Does It Cost to Drive – 4 Key Factors

Man driving his car

As of November 2022, around 80% of British drivers were looking to save money on driving. That adds up to over 30 million British drivers trying to find ways to take to the road in a more efficient and economical fashion.

There are lots of factors that impact how much it costs to drive. Everything from a car’s insurance through to its maintenance adds up. That said, this article will specifically look at the impact that fuel has on how much it costs to drive, helping you to make savvier choices when you next hit the pump.

How does fuel impact how much it costs to drive?

There are four main factors that will impact the fuel cost per mile of your vehicle.

Fuel price

The cost of fuel is probably the biggest driving expense. Fuel prices fluctuate regularly. The price of fuel will vary because of combination of factors:

  1. The price of crude oil. The wholesale price of crude oil is the biggest factor in determining overall fuel price.
  2. Fuel duty and VAT. These are taxes that drivers have to pay on top of the cost of crude oil.
  3. Fuel prices are also dictated by the costs involved in their delivery.
  4. Retailer profit. Companies want to make a profit from any fuel they sell. As such, they’ll add a markup on the wholesale price of oil – typically anywhere from 5 and 10%.
  5. This refers to the ethanol content in the fuel, which can impact overall fuel price.
  6. The strength of the pound (sterling).

Another factor that determines fuel prices is regional variation. In rural locations with fewer fuel stations, prices may be higher, as businesses need to cover their overheads and have a monopoly market. Alternatively, in urban areas with a high number of fuel stations, prices may be lower in order to be more competitive.

Whilst you can’t control the price or ethanol content of crude oil, you can carefully plan your next trip to the pump, avoiding those retailers who heavily mark-up fuel.

Fuel type

The type of fuel your car runs on will determine its overall running cost. Diesel vehicles are more economic for long distances, but are more expensive overall. For shorter, stop-start journeys, petrol or electric vehicles will be more economical.

Vehicular efficiency

MPG refers to a car’s ‘miles per gallon’, and it indicates your car’s fuel efficiency. The higher the MPG, the less fuel consumed by your car when you drive. Higher MPG cars are therefore more fuel efficient and economical.

Driving style

Individual driving style and choices can help to reduce the cost of driving.

Avoiding intense acceleration, driving smoothly, using gears sensibly, and planning your route ahead so as to avoid traffic are more efficient and therefore economic driving styles. Don’t forget to avoid using the air conditioner unnecessarily and reduce vehicular weight, too.

How much does it cost to drive?

There’s no one straight answer for how much it costs to drive. This depends on a number of factors, ranging from the type of car you have through to the cost of fuel. 

If you want a figure on how much you’re likely paying to drive, there are plenty of fuel cost calculators online. These handy tools allow you to input information like your car make and model or registration plate and your annual mileage. From there, they’ll provide an approximate figure of how much it costs you to drive.

Alternatively, you can use the following formula yourself in order to establish your fuel cost per mile:

Cost per mile (pence) = Litres x Fuel price / Number of miles

To work out the annual running cost of your vehicle, you can use this formula:

Annual running cost = Cost per mile x Average mileage

How can I find cheaper fuel?

Take into account the factors listed above to try and shop around for the most economic fuel type for you.

Remember that fuel is typically cheaper at supermarkets, and premiums will be whacked onto motorway fuel stations. Avoid ‘premium’ fuel types, which typically offer little advantage to cars unless they’re performance models.

If you’re looking for a way to monitor the average price of fuel at different retailers, be sure to check out the RAC’s Fuel Watch initiative.

Find a more economical drive with My Car Credit

If you’re looking for a more economical and efficient car, check your car finance eligibility or contact My Car Credit on enquiries@mycarcredit.co.uk today.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

Top 5 Safety Tips for Driving in the Dark

White Toyota driving at night

The Royal Society for the Prevention of Accidents (RoSPA) report that 40% of collisions occur at night.

Whether you’re a newly-passed driver or have many years behind the wheel, driving in the dark can pose risks to your safety. These are the top five tips for ensuring that you’re as secure as possible when you get behind the wheel at night.

Driving in the dark: 5 tips

Know how to use your lights

You should be turning on your dipped headlights an hour before sunset and an hour after sunrise to allow other road users and pedestrians to see your vehicle. Use your full beam when appropriate, but always flick it off whenever another vehicle is approaching to avoid blinding them. Ensure that the interior of your car remains dark to reduce the interference of internal light.

Don’t stare directly at oncoming vehicles, as this will dazzle you and your eyes may struggle to readjust. Direct your gaze down and to the left of the road, keeping your car aligned with the white line marking the road’s edge.

Vehicle maintenance

You can only use your headlights correctly if they are working. Before you depart for a night journey, ensure that your headlights and brake lights are working effectively, and stay on top of maintaining your car throughout the year. Remember that you can be pulled aside by police if your bulbs aren’t working.

You also need to ensure that your windscreens are clear – the dirtier the window, the more disruptive the glare from other vehicles will be, and the more likely your window is to steam up.

Stay alert

Do not get behind the wheel if you’re tired. You’ll be a danger to yourself and other road users. Take more rest breaks if you need them, particularly if you’re covering long distances.

Stay alert for pedestrians, cyclists and animals. Be aware that cyclists and children may not be wearing reflective clothing and may be less visible in darker areas. If you’re in residential areas, take particular care and always keep your speed down.

Test your eyes regularly

No matter your age, you must get your eyes tested frequently. You need to ensure that you’re wearing glasses if you need them, and that you’re updating your prescription accordingly.

Carry safety essentials

If you’re driving in the dark, it’s likely that you’re driving through the winter months. So, it’s worthwhile having a winter safety kit in your boot. Keep warm items on hand, as well as a torch, ice scraper and de-icer. Having a spare mobile charger is a good idea, too.

Step up your night-time driving safety

Looking for a car loan quote to finance the perfect car for night driving? Or maybe you’re curious about your eligibility for car finance? Whatever your query, contact My Car Credit on enquiries@mycarcredit.co.uk to find out how we can help.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

What is the Best Car for Snow Driving?

Skoda by the road in the snow

From Central London to John O’Groats, snow dusts the UK almost every winter. Whether it’s a light flurry or a heavy dump, snow can make driving challenging to say the least. One of the best ways to navigate the winter months is to invest in a capable vehicle. So, what should you look for when shopping for the best car for snow?

From driver-assist features to 4WD functionality, read on to find out more about the best cars for snow and what to look for in a winter-ready car.

Suzuki S-Cross

If you don’t want to spend a fortune on a Range Rover but still want all the benefits of a family SUV, you’ll love the Suzuki S-Cross. It’s packed with safety features to keep you confident in the snow, including automated emergency braking, lane departure warning and smart traffic sign recognition.

For even more peace of mind, the Suzuki S-Cross features eCall. The EU initiative allows you to make emergency calls from your vehicle in case of a collision. Accidents spike in the winter months, which makes this one of the best car for snow features.

As for handling and performance. ALLGRIP SELECT 4WD technology makes it easy to switch between driving modes depending on the terrain. This is a huge bonus in snowy conditions and automatically distributes torque to the rear wheels for extra traction and control. 

Upgrade to the high-end Ultra trim and you’ll enjoy features like heated front seats. Perfect for warming you up on chilly mornings. Even better, the cost of ownership is low thanks to modest Vehicle Excise Duty (VED) and low insurance costs.

Volkswagen T-Cross

Increase your budget and you can get behind the wheel of a Volkswagen T-Cross, another one of our best car for snow picks. Like the Suzuki S-Cross, this compact SUV boasts best-in-class safety features, including a fantastic collision-avoidance system. It’s also relatively light, making it easy to control when driving in snowy and icy conditions.

Powerful front fog lights light up snow-dusted roads with ease while features like high beam assist and blind spot sensor add an extra layer of safety. Adaptive rear seats make it easy to pile in friends and family for a winter road trip or transport bulky items like skis and snowboards. Whatever you need, the Volkswagen T-Cross adapts to you.

Skoda Kodiaq

The best-selling Skoda Kodiaq combines top-notch safety features with loads of functionality. One of our favourite perks is snow mode, which customises handling when driving on challenging surfaces. Electronic assistance systems kick in to increase traction and prevent wheelspin. Snow mode also activates the Anti-Lock Braking System (ABS) when slowing down. This encourages snow to accumulate in front of the tyres and improve braking response times. It’s clever features like these that make the Skoda Kodiaq one of the best cars for snow.

Choose from the five or seven-seat version, depending on your needs. Like the Suzuki S-Cross, the Skoda Kodiaq is a great alternative if you’re looking for a snow-ready family car, without the luxury price tag.

Volvo V90 Cross Country

When it comes to safety, it’s hard to beat Swedish auto manufacturer Volvo. The V90 Cross Country raises the stakes with all-wheel-drive functionality and high clearance. Switch into offroad mode to enhance control in snowy conditions. Clever driver-assist features like hill descent control and rear air suspension help you navigate slippery road conditions. The result? You’ll feel confident and comfortable driving in all conditions, including snow.

Google Maps, Google Assistant and Google Play are built into the DNA of this luxury estate model. Whether you want to plot your route to your Airbnb or blast your favourite Christmas tunes, the V90 Cross Country is a pleasure to drive.

Mini Countryman 

It may be small but in terms of performance, the Mini Countryman punches well above its weight. Invest in an All4 version and you’ll have the option to engage all four wheels. This makes it one of the best cars for snow. All4 is invaluable when driving in snowy conditions and you’ll notice an instant improvement in handling and agility. There’s also loads of room for passengers, as well as all your winter sports gear. Need extra space? Throw on a roof rack and transport everything from Christmas trees to IKEA flatpacks with ease.

Fiat Panda Cross

Compact, lightweight and amazingly responsive, the Fiat Panda Cross is one of the best cars for snow. This rugged version of the best-selling Fiat Panda hatchback beefs things up with a four-wheel-drive system and impressive off-road capabilities. No more getting stuck when heading up to your local sledging hill or exploring your nearest AONB! There’s nothing luxurious about the Fiat Panda Cross but if you’re not fussed about leather upholstery and high-tech features, this is one of the best cars for snow.

Land Rover Defender

If you have the cash, it’s hard to look past the Land Rover Defender. Built for adventure, this luxury SUV is right at home on snow-covered roads. The cabin is suitably luxe and features butter-soft upholstery that feels amazing and is easy to clean. Ideal for if you have a bunch of snow-dusted passengers pile into the car!

Permanent All Wheel Drive functionality gives you superlative control in snowy conditions, whether you’re cruising along the motorway or navigating country roads. The latest plug-in hybrid model promises all the off-road capabilities of the original Land Rover Defender, with an eco-friendly edge. 

While heated seats and leather upholstery are a treat, the best cars for snow aren’t just comfortable. They’re safe, capable and ready to get you from A to B, no matter what the weather. Want to upgrade to something more competent this winter? Use out car loan APR estimator to calculate how much you can borrow. We’ll match your application with trusted lenders across the UK and help you get behind the wheel of a winter-ready car faster.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan
£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!