Mercedes-Benz vs Volvo: UK Running Cost Comparison (2026)

Based on 2 real data points + estimates · Updated April 2026

Choosing between the Mercedes-Benz and Volvo isn't just about purchase price — the true cost of ownership tells a different story. Using our cost model and UK market averages, we can show exactly what each car costs to run every year.

Annual Running Cost Overview

Insurance Costs

Insurance is one of the biggest variables in running costs. Based on our data, the Volvo comes out cheaper to insure, with an average premium of £1,292 per year compared to £1,424 — a difference of £132 annually. Insurance is calculated using standardised driver demographics (age 35, 3 years no claims) so the difference reflects the vehicle itself rather than driver risk.

Fuel & Energy Costs

The Mercedes-Benz has the lower annual fuel cost at £1,400 per year, saving £800 over the Volvo. Fuel costs are calculated from real-world mileage data taken from DVSA MOT odometer records, using current UK pump prices per mile for each fuel type.

Depreciation

The Mercedes-Benz holds its value better, with estimated annual depreciation of £1,080 versus £5,440 for the Volvo. Depreciation is typically the largest single running cost — often larger than fuel — making this a significant factor in the true cost of ownership.

Which Is Cheaper to Run?

Over a full year, the Mercedes-Benz costs approximately £5,127 to run, compared to £9,632 for the Volvo. That's a difference of £4,505 per year, or around £375 per month. Over five years, choosing the Mercedes-Benz could save you £22,525 in running costs alone.

Keep in mind these are averages — your actual costs will depend on your age, occupation, location, and how you use the vehicle. Use the personalised calculator below to get figures specific to your situation.