Which is the cheapest car to run?

For most drivers today, the cheapest car to run is a small electric vehicle charged at home on a low overnight tariff; where home charging isn’t practical, a frugal hybrid such as a Toyota Prius/Corolla/Yaris is usually next-best, while the most economical petrol-only options include cars like the Mitsubishi Mirage (U.S.) and Dacia Sandero (UK/EU). The exact winner depends on your local energy prices, insurance costs, tax rules and how many miles you drive each year.

What “cheapest to run” actually means

When people ask which car is cheapest to run, they typically mean day-to-day operating costs rather than the sticker price. That usually includes fuel or electricity, scheduled maintenance, tyres and consumables, road tax/registration, and insurance. Some shoppers also fold in depreciation (how fast the car loses value), which can be the largest single cost but varies widely by model and market conditions.

Quick picks by region (2024–2025)

The following shortlists highlight models that consistently deliver low running costs in their markets, balancing energy use, reliability, insurance groupings and routine service needs. Your own prices and premiums may shift the order, but these are strong benchmarks.

• UK
  

  • EV: MG4 SE (51–64 kWh) — efficient, relatively low purchase price among EVs; home-charging can be as low as 2–4 pence per mile off-peak, rising to 8–17 pence on standard/public rates.
  • Hybrid: Toyota Yaris/Corolla Hybrid — real-world 55–65 mpg (UK); typical petrol pricing puts fuel at roughly 10–12 pence per mile, with excellent reliability and modest servicing.
  • Petrol-only: Dacia Sandero 1.0 TCe — simple, light, thrifty, often in low insurance groups; around 12–14 pence per mile in fuel at typical prices.

• U.S.
  

  • EV: Chevrolet Bolt EV (used, 2017–2023) — very efficient; at $0.13/kWh home rates, energy is about 3–4 cents per mile. Public fast charging (~$0.35–$0.50/kWh) can raise that to roughly 10–14 cents.
  • Hybrid: Toyota Prius (2023–) or Corolla Hybrid — commonly 50+ mpg; at $3.50–$4.00/gal, fuel runs about 6.5–8 cents per mile with low routine maintenance.
  • Petrol-only: Mitsubishi Mirage — 39–43 mpg and low-cost tyres/parts; around 8–10 cents per mile in fuel at typical prices.

• EU (general)
  

  • EV: Dacia Spring — extremely light and efficient; at €0.20/kWh, energy can be roughly €2.5–€3.0 per 100 km (about 2.5–3.0 cents/km) on home AC charging.
  • Hybrid: Toyota Yaris Hybrid — real-world economy and low servicing needs make it a safe low-cost bet across markets.
  • Petrol-only: Dacia Sandero — among the lowest combined costs for fuel, insurance and routine maintenance.

These picks assume typical driving and access to home charging for EVs. If you must rely mostly on public fast charging, a hybrid often overtakes an EV on day-to-day running cost.

Breakdown: the big cost drivers

Understanding the main components of running costs helps you compare cars in a way that fits your situation.

• Energy: Electricity or fuel per mile/km is the headline driver. EVs are most compelling when charged at home on off-peak rates; hybrids shine when fuel prices are high or charging access is limited.
• Maintenance: EVs skip oil changes and have fewer wear items but can have pricier tyres; hybrids and simple petrol cars with proven reliability keep workshop time low.
• Insurance: Varies sharply by driver profile and region. In some markets, EV insurance premiums rose in 2023–2024; check quotes before deciding.
• Taxes/fees: EVs often benefit from lower road tax and city charges, but rules are evolving. For example, the UK begins applying standard VED to EVs from 2025.
• Depreciation: Not strictly a “running” cost, but the largest factor in total cost of ownership; mainstream hybrids typically hold value well, and some budget petrol cars depreciate slowly relative to their price.

Comparing these categories side by side, then weighting them by your annual mileage and usage, gives a truer picture of what’s cheapest for you.

What it costs per mile: simple, current examples

These example calculations use typical 2024 price ranges and real-world efficiencies to illustrate why EVs with home charging or efficient hybrids often win.

• U.S. EV at home: 3.5 mi/kWh and $0.13/kWh electricity → about $0.13 ÷ 3.5 ≈ 3.7 cents/mile.
• U.S. EV on fast chargers: $0.40/kWh → ~$0.40 ÷ 3.5 ≈ 11.4 cents/mile (can be more than a hybrid).
• U.S. Hybrid (Prius ~52 mpg): $3.75/gal → $3.75 ÷ 52 ≈ 7.2 cents/mile.
• U.S. Petrol (Mirage ~40 mpg): $3.75/gal → $3.75 ÷ 40 ≈ 9.4 cents/mile.
• UK EV off-peak: 3.5 mi/kWh at £0.10/kWh → ~2.9 pence/mile; standard 28p/kWh → ~8 pence/mile; public 60p/kWh → ~17 pence/mile.
• UK Hybrid (60 mpg UK): petrol ~£1.50/litre (~£6.82/imp gal) → £6.82 ÷ 60 ≈ 11.4 pence/mile.
• EU EV (Dacia Spring ~13 kWh/100 km): €0.20/kWh → 13×€0.20 = €2.60/100 km (~2.6 cents/km).

Your actual figures will vary with driving style, climate and prices, but the relationships tend to hold: home-charged EVs are usually the lowest-energy-cost option, hybrids are a close second when public charging dominates, and the thriftiest petrol city cars follow.

When an EV isn’t the cheapest to run

EVs’ advantage depends on charging access and prices. In these scenarios, a hybrid may be cheaper to operate:

• You mostly use public fast charging at high per-kWh rates.
• You drive very few miles annually (fixed insurance/tax can dominate, and the fuel savings of an EV take longer to recover).
• Your insurance quotes for specific EVs are significantly higher than for comparable hybrids or petrol cars.
• You face very cold winters without preconditioning or garage parking, which can reduce EV efficiency and range.

If one or more of these apply, run the numbers with your own prices; a hybrid often comes out ahead on day-to-day costs.

How to compute your personal “cheapest to run” pick

The quickest way to settle this for your circumstances is to plug in your own prices and mileage to get a like-for-like cost per mile or per year.

1. Estimate annual miles (or km) and split of home vs public charging (for EVs).
2. Get real-world efficiency: mi/kWh for EVs; mpg (U.S. or UK) or L/100 km for petrol/hybrids from owner reports/independent tests.
3. Use your actual electricity and fuel rates (off-peak, standard, public DC rates; local petrol prices).
4. Calculate energy cost per mile: electricity price ÷ mi/kWh, or fuel price per gallon ÷ mpg.
5. Add annualized maintenance, tyres, tax and insurance (from quotes and service schedules); divide by your annual miles for an all-in running cost per mile.
6. Optionally add depreciation: expected value loss per year ÷ annual miles for total cost per mile.

This approach turns “it depends” into a clear ranking tailored to your budget, routes and charging/fueling reality.

Insurance, tax and incentives: the fine print

In many places, EVs still benefit from lower road tax, city toll exemptions and cheaper off-peak electricity, while company-car drivers may get favorable benefit-in-kind rates (subject to change). Conversely, recent years have seen higher insurance quotes on some EV models due to repairability and parts availability. Always obtain like-for-like quotes for the exact trims you’re considering and review any upcoming tax changes in your region.

Practical ways to keep running costs down

Regardless of powertrain, a few habits and choices can meaningfully cut your ongoing costs.

• Right-size the car: smaller, lighter models cost less to fuel and insure.
• Tyres matter: choose low rolling-resistance tyres and keep them properly inflated.
• Drive smoothly: gentle acceleration, steady speeds and anticipatory braking save energy and brakes.
• Service on schedule: small, regular maintenance prevents big, expensive repairs.
• For EVs: maximize home/off-peak charging and precondition while plugged in in cold weather.
• For hybrids/petrol: avoid short, cold starts when possible; combine errands to reduce warm-up penalties.
• Shop insurance annually: premiums vary widely; telematics policies can help careful drivers.

Stacking these small wins often narrows the gap between contenders—and sometimes moves a model into the top spot for you.

Bottom line

If you can reliably charge at home, a modest electric hatchback is typically the cheapest car to run, often by a clear margin on energy and maintenance. Without home charging, a proven hybrid such as a Toyota Prius/Corolla/Yaris usually delivers the lowest day-to-day costs. Among petrol-only cars, simple, efficient models like the Mitsubishi Mirage (U.S.) and Dacia Sandero (UK/EU) remain the budget champions. Use your own prices and mileage to confirm which lands cheapest in your driveway.

Summary

The cheapest car to run is usually a small EV charged at home; if that’s not feasible, choose a frugal hybrid, with simple petrol city cars as the next-most economical. Actual rankings depend on your energy prices, insurance, taxes and miles driven, so a quick cost-per-mile calculation with your own numbers will identify the true winner for you.