Petrol at 60p? How Car Ownership Has Changed Since the 90s

If you have ever heard someone say petrol used to cost 60p a litre, they are probably not exaggerating much. In the mid to late 1990s, fuel prices really were sitting around that mark.

Fast forward to today and the cost of running a car feels very different. But it’s not just petrol prices that have changed. The way we buy cars, finance them, insure them and even think about owning them has shifted significantly over the past three decades.

Let’s take a look at how car ownership has evolved since the 90s, and what that means for you now.

Buying a Car in the 90s: Simpler, But Not Always Cheaper

In the 1990s, buying a car often meant one of two things. You either paid in cash, or you took out a straightforward loan.

Hire Purchase existed, but Personal Contract Purchase was far less common than it is today. There were fewer finance products and less variation in how deals were structured.

The process was also less digital. You visited the dealership, looked at printed brochures, and negotiated face-to-face. Credit checks were carried out, but the technology behind them was nowhere near as advanced.

On the surface, it felt simpler. But that did not always mean better value or greater transparency. Information was harder to compare, and shopping around took more time.

Petrol at 60p and Smaller Fuel Bills

Fuel prices in the 90s now sound almost mythical. Around 60p to 70p per litre was common before significant increases in fuel duty and global oil price shifts.

Cars were also generally smaller and lighter. Engines were less powerful, but they were often simpler. Fuel efficiency was improving, though not at today’s levels for hybrid or electric vehicles.

Insurance premiums were lower in cash terms, but wages were also lower. When adjusted for inflation, the difference is not always as dramatic as it first appears.

Still, filling up the tank without wincing is something many drivers remember fondly.

The Rise of PCP and the Monthly Payment Era

One of the biggest changes since the 90s is how people pay for cars.

Personal Contract Purchase became much more widespread in the 2000s and 2010s. Instead of focusing on owning the car outright, many drivers began focusing on the monthly payment.

PCP offers lower monthly instalments compared to traditional Hire Purchase because of the optional final payment. This made newer, more expensive cars feel more accessible.

As a result, car ownership shifted towards car usership. Many drivers now change vehicles every few years rather than keeping the same car long term.

The trade-off is that finance agreements have become more detailed. Interest rates, commission structures and balloon payments are now central parts of the conversation. The paperwork has grown along with the choice.

Technology: From Tape Decks to Touchscreens

Step inside a typical 90s family car and you will notice the difference immediately. No touchscreens. No parking sensors. No reversing cameras. Sat nav, if you had it, came in book form and lived in the glove box.

Modern cars are packed with technology. From driver assistance systems to smartphone connectivity, the vehicle has become a digital space as much as a mechanical one.

This has improved safety and convenience, but it has also increased complexity. Repairs can involve software diagnostics as well as spanners. Updates may happen online rather than in a garage.

Owning a car today often means managing subscriptions, updates and sensors alongside servicing and tyres.

Regulation and Consumer Protection Have Tightened

Another major shift since the 90s is the level of regulation around car finance.

The Financial Conduct Authority now oversees consumer credit. Lenders and brokers must follow rules around affordability, transparency and treating customers fairly.

Commission models, interest rate setting and disclosure requirements are subject to greater scrutiny than they were decades ago.

Consumers today also have clearer routes to raise complaints if something goes wrong, including access to the Financial Ombudsman Service.

In short, the structure around car finance is more formalised and regulated than it used to be.

Electric Vehicles and Changing Attitudes

In the 90s, electric cars were largely experimental. Today, they are part of everyday discussion.

Environmental awareness has grown. Low-emission zones, charging networks and policy changes have influenced how people view petrol and diesel cars.

Ownership itself is evolving. Leasing, subscription models and car sharing services are more visible. For some drivers, long-term ownership is no longer the default option.

The car has shifted from being a long-term possession to, in some cases, a flexible service.

So Has It Got Better or Just More Complicated?

In many ways, car ownership has improved. Vehicles are safer. Technology is more advanced. Finance options are more flexible.

At the same time, agreements can feel more complex. The focus on monthly payments can sometimes draw attention away from the total cost of credit. Commission structures and layered finance products have added more moving parts.

If you were buying a car in the 90s, you might remember fewer options and fewer acronyms. Today, you have more choices and more protection, but also more details to understand.

Petrol may no longer be 60p a litre, but the bigger change is how we approach the decision itself. Buying a car is now closely tied to finance, regulation and long-term budgeting in a way that feels very different from decades past.

Looking Back at Your Own Agreement

With so much change over the years, it’s worth taking a moment to think about your own car finance agreement.

If you took out PCP or Hire Purchase in recent years and are unsure how the interest rate was set, how commission worked, or whether everything was explained clearly, reviewing the paperwork can be a sensible step.

Mis-Sold Expert can help you check your agreement and understand whether key information, including commission and total cost of credit, was presented clearly at the time. It’s about clarity, not assumptions.

Sometimes everything was handled properly. Sometimes questions remain. The first step is simply understanding what you signed.

You can claim without using a claims management company; you can go to your finance provider and then to FOS, for free. Additionally, the FCA is introducing a free consumer redress scheme.