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Car Insurance News
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Cost of running a car up by 14%
in one year
23 Nov 2011
by Heather Ferrier
According to the
latest figures from the RAC, the average cost of
running a car is now over £6,600 per year, a rise of 14%
(£819) on last year. That's a staggering 9% more than the current
rate of inflation (at 5%).
The
average cost of running a car is now 55.7p per mile indicating that the
statutory mileage allowance of 45p, although it was increased in the
last budget, is no longer enough for many drivers that use their cars
for their work.
Motorists
are spending an average of £129 a week on their cars and,
compared to four years ago, it now costs typically £1,556 more
per year to own and run a car.
 While car insurance has doubled in price
over the last three years, the biggest burden to motorists, of course,
has been rising fuel prices. The annual cost of fuel has increased by
£160, that's an increase of over £3 every week.
Petrol
has increased by 13.8% and diesel by 15.2% over the last year,
respectively now costing £134.78 and £140.49 per litre.
The
RAC figures were based on their 'Cost of Motoring Index', which is
calculated from their sample of 17 popular new cars taking account of
all the typical financial outgoings associated with car ownership.
These include: depreciation, finance, service, maintenance, repair,
fuel, insurance, road tax and breakdown cover.
Adrian
Tink, the RAC's motoring strategist, comments: “This year’s Cost of
Motoring Index highlights the tough conditions being faced by Britain’s
motorists. With the annual cost of motoring approaching seven thousand
pounds the price burden of car ownership is hitting drivers hard. The
increase of almost three times the rate of inflation is crippling
drivers’ wallets and something needs to be done to stem the tide."
The
above RAC index relates to the cost of running a new car. While the
cost of running a second-hand car also rose by 13.2%, the total
cost is less than a third of that of a new car at £1,965
per year. Clearly, one way for motorists to economise is to buy a used
car instead of a new one. Indeed, new car sales have dropped while
drivers are also trading-in for smaller vehicles in order to improve
their fuel economy.
The
RAC and other motorists' representatives have called on the government
not to increase fuel duty next year which is currently scheduled to be
increased twice.
Related
articles:
Motoring
organisations call for EU petrol price review
62%
of the price of fuel at the pumps is now tax
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