How much money can you save by cycling?

When people talk about the benefits of cycling, saving money often comes near the top of the list. But what does that actually look like in real life?

With household budgets under pressure from rising food, energy and fuel costs, many people are looking for practical ways to cut back. Cycling will not replace every car journey, and for many people it would not be realistic to try. But swapping some short trips from car to cycle can be a simple way to reduce everyday costs.

That is where cycling can make a real difference. Many journeys are short, yet lots are still made by car. Choosing to cycle some of those local trips instead can help lower spending on fuel, parking and car wear and tear - while also bringing health and wellbeing benefits.

Small changes can make a difference

This is not about getting rid of your car or cycling everywhere.

For many people, driving will still be necessary for some journeys. But there may be short trips in your week that could be done by bike instead — going to the shops, getting to school, visiting friends or travelling to work locally.

Those smaller changes can still add up.

According to Department for Transport statistics, 72% of all trips made in England in 2021 were under five miles. While many very short journeys are walked, most trips between one and five miles were still made by car or van. That suggests there is real potential for more of these journeys to be cycled instead.

Bikes cost less to own and run

One of the clearest differences between cycling and driving is cost.

Research by Cyclescheme found that the annual cost of owning and running a cycle was much lower than running a car. The difference becomes even clearer when you look at the wider costs of car ownership, including fuel, insurance, servicing, tax and parking.

Buying a car is also a major upfront expense. Carflation, a study by Moneybarn, found that the average cost of a new car rose from £29,367 in 2012 to £41,219 in 2022. Even used cars have become more expensive, with the Auto Traders Retail Price Index reporting an average used car price of £17,815 in May 2023.

By comparison, the Bicycle Association in 2020, reported that the average price paid for a bike in the UK was £332, while that of an e-cycle was £1,854.

Fuel savings from short journeys

Fuel is one of the easiest places to see a saving.

Although petrol and diesel prices have fallen from their 2022 peak, they still represent a significant regular cost for households. The RAC Fuel Watch has unleaded petrol at 143.29 pence per litre and diesel at 145.61 pence per litre at the time of writing. 

Cycling UK looked at what could be saved by switching short car journeys under five miles to cycling. Using average trip patterns and fuel costs, the annual fuel saving came out at:

• about £54.88 for a Peugeot 208
• about £48.67 for a Ford Focus
• about £69.32 for a Kia Sportage

On their own, those figures may not seem huge. But they reflect only fuel savings from short trips. They do not include savings on parking, servicing, insurance, tax or general wear and tear from driving less.

Maintenance costs are lower too

Running a car involves more than fuel.

The average cost of a full car service is around £155 for a small car, £205 for a medium-sized car and £395 for a large car. That does not include repairs, replacement parts or labour.

Bike servicing is much cheaper. A service typically costs between £25 and £100, depending on the bike and the level of work needed.

There is another difference too: many cycle repairs can be done at home. Fixing a puncture, cleaning a drivetrain or adjusting brakes is much more accessible than most car maintenance. That means cycling can be a lower-cost option not just to use, but to keep in good working order.

One big difference is that many cyclists can do most repairs themselves; this isn’t true of cars anymore. Cycling UK has lots of helpful videos, advice and courses to help you improve your bike mechanic skills.

Insurance and tax

The cost of car insurance went up by 20% over the past year. The average cost of fully comprehensive car insurance in the UK is now £657 a year.

However, premiums vary due to things like age of the driver and where in the country they live. They’ll be much higher for a 20-year-old living in Greater Manchester, for example.

Unlike with cars, there is no legal obligation to insure your cycle. That doesn’t mean you shouldn’t, though. A Cycling UK membership comes with free £10m liability insurance cover. With individual membership starting at £33 a year, this is a huge saving. But even comprehensive cycle-specific insurance is much cheaper than that for a motor vehicle, at about £91.

Then there is is Vehicle Excise Duty (VED). This is determined by how polluting your vehicle is. You’ll pay a rate based on a vehicle’s CO2 emissions the first time it’s registered. You’ll then pay vehicle tax every 6 or 12 months at a different rate. Vehicle tax rates explained.

If you drive an electric car with no emissions, you don’t have to pay VED, but if you drive a gas-guzzling SUV, you’ll pay a lot more. That’s why people cycling don’t have to pay VED – they burn calories, not carbon.

As a guide, with an average family car, such as a Ford Focus, you’ll pay £180 a year in VED.