I've been trying to work out the costs of owning a car... and think I've found the cheapest "banger" car and costs per year possible...

Cheapest possible smallest diesel car, eg Peugeot 106 1.5d (there are others that use this size engine, such as the Corsa 1.5d, Citroen AX)

Cost of car: £400-500 average (ebay / autotrader)

Tax /year: £115 (cars under 1549cc)

MOT /year: £50 basic*

Servicing: £50 basic

Fuel (5000miles, 45mpg, 500litres): £372 (£272 for 250 litres @ £1.09/l diesel, £100 for 250 litres at 40p/l vege-oil**)

Insurance: £300

Total cost year 1: £1287, year 2: £887

If you do more miles, then the savings add up. If you can get the car for free then you save more, but I've worked out the figures for running a small petrol, and even if the car is free, it costs more to run the car per year, than it does to run a small deisel.

I've posted more car options here:

[You must be registered and logged in to see this link.]* assuming nothing goes wrong.

** some people recommend 50/50 mix.