The True Cost of Owning a Premium SUV: What to Budget After You Buy

You’ve seen them on the roads around Sussex and Kent – the high driving position, the premium badge, the sense of safety and style. Thanks to the used car market, owning a dream car like a Range Rover Evoque, BMW X5, or Audi Q7 is more affordable than ever. A budget of around £14,000 can get you a lot of car for your money.

But here’s the single most important piece of advice I can give you as a professional in the motor trade: the purchase price is only the beginning. The "True Cost of Ownership" is what separates a dream car from a financial nightmare.

While a six-year-old premium SUV might cost the same to buy as a three-year-old mainstream equivalent, its running costs are still based on its original, much higher, price tag. Before you fall in love with the badge, it's my job as your guide to make sure you're prepared for what comes after you buy.

The 5 Key Costs That Are Higher on Premium SUVs

When you move from a highly-regarded mainstream car to a premium brand, these five costs can come as a major shock.

1. Tyres: The Biggest Surprise This is the one that catches everyone out. A quality 18-inch tyre for a family car might cost £120. A premium, 20-inch tyre required for a Range Rover or BMW X5 can easily cost £220-£280 per tyre. That’s a potential bill of over £1,000 for a new set, almost double that of a mainstream SUV.

2. Servicing & Repairs Premium cars come with premium parts and require specialist knowledge. An independent garage will always be cheaper than a main dealer, but they still have to pay more for the parts. An oil and filter service for a Skoda Kodiaq might be £190 at our trade rates; for an Audi Q7 with a large V6 engine, it will be closer to £400 due to the specialist oils and larger filters required. A failed sensor on a German brand can cost twice as much to replace as the equivalent part from the VW Group's Skoda brand.

3. Road Tax (VED) This can vary wildly. A modern, efficient Skoda Kodiaq registered after April 2017 will cost a standard £190 a year to tax. An older, more powerful diesel BMW X5 registered before 2017 could have an annual road tax bill of over £600. It's a significant ongoing cost that must be factored in.

4. Fuel Consumption A heavy, powerful, four-wheel-drive SUV is thirsty. While a modern 2.0L diesel Skoda Kodiaq might average 45-50mpg, a similarly priced older 3.0L premium equivalent will likely average 30-35mpg. If you cover 10,000 miles a year, that difference could easily add up to an extra £800-£1,000 in your annual fuel bill.

5. Insurance Insurers look at the car's value, desirability, and average repair costs. A premium SUV ticks all the boxes for a higher premium, often costing 20-30% more to insure than a mainstream alternative of the same age and value.

At a Glance: A Real-World Comparison (£14k Budget)

Let's compare two seven-seat SUVs you could buy for a similar purchase price.

Feature	'The Dream' (e.g., 2015 BMW X5)	'The Smart Choice' (e.g., 2018 Skoda Kodiaq)
Purchase Price	£14,000	£14,000
Age / Mileage	Older, Higher Mileage	Newer, Lower Mileage
Approx. Annual Road Tax	£395+	£190
Approx. Cost Per Tyre	£220+	£130
Approx. Real-World MPG	38 MPG	48 MPG
Reliability Risk	Higher (more specialist parts)	Lower (cheap replacement parts)
Practicality	5+2 Seats, Good Boot	7 Full Seats, Huge Boot
ULEZ	Petrol only	Diesel or Petrol

The Car Compass Verdict: Knowledge is Power

My job isn't to talk you out of your dream car. A well-maintained BMW X5 can be a fantastic and reliable vehicle. My job is to be your expert guide, ensuring you go into the purchase with a clear and realistic understanding of the total financial commitment.

We help you look at the whole picture. Sometimes, that means finding you the perfect, meticulously cared-for premium model that defies the odds. Other times, it means introducing you to a "smarter alternative" like the Skoda Kodiaq, which gives you incredible practicality and near-premium quality, without the hidden financial sting.

The right car is the one that fits your lifestyle and your total budget.

If you’re ready to have an honest, transparent conversation about the true cost of your next car, get in touch for a free, no-obligation consultation.