October 2008 Car News - GBCarLoans.com
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2nd October 2008
Rising fuel prices and cost of depreciation speed up cost of motoring
UK motorists are paying on average 19% more to keep their cars on the road than in 2007. The total average cost for owning and running a car now is £6,133, according to RAC's 2008 Cost of Motoring Index released today. A massive 17% hike in fuel prices and a 35% rise in depreciation in the past year has stopped consumers making car purchases.
According to the index, the annual running costs for an average family car have increased to £2,435 - a year-on-year increase of £277. This could explain why over a third of drivers are considering buying a car that is cheaper to run than their current model.
RAC's Cost of Motoring Index is an in-depth piece of research that tracks the costs associated with owning and running 17 popular models of car each year. The Index illustrates to the RAC the costs associated with owning a car within the UK - and highlights to motorists where savings can be made.
Despite the spiralling costs, the research points to a continued dependency on cars in the UK, most people say they would not stop relying on their car unless better public transport is made available or on average until the running costs rose by almost 50% beyond their current level.
The increasing costs however are forcing a number of motorists to try and change their behaviour to reduce costs, including:
- A quarter of motorists (25%) now share their car more with friends and family
- 16% are considering buying a second hand car rather than a new car to avoid depreciation loss.
- A quarter (22%) are considering switching to a smaller car or bike.
- Nearly one in five (18%) are considering changing their car for one in a lower insurance bracket.
The cost of motoring looks set to rise further.
RAC's Motoring Strategist Adrian Tink comments: "The Cost of Motoring Index is designed to help cash-strapped motorists by highlighting hidden cost, including depreciation. With the credit crunch hitting motorists hard in their pocket, we encourage UK drivers now more than ever to take all potential financial implications of car running costs into account to better manage their budgets.
"With the majority of UK motorists also admitting that reliance on their cars would only change if we had more effective and cheaper public transport*****, RAC is urging the Government to ensure money from motoring taxes is directly invested into improving the current public transport system."
RAC patrol Prakesh Patel warns motorists that attempts to cut back on crucial motoring costs could lead to a false economy: "The Index revealed, worryingly, that a fifth (20%) of motorists are considering avoiding putting their car in for a full service in a bid to save money. Servicing a car regularly not only helps with efficiency and safety, it also prevents the value of a car dropping. RAC recommends that drivers stick to their servicing schedules if they do not want to lose out in the long run."
RAC has compiled the following cost-effective tips to help motorist cut down on fuel consumption:
1) Drive at an appropriate speed to reduce fuel costs: Not only does staying at or within the speed limit increase driver safety, it also saves money on fuel costs and reduces CO2 emissions
2) Less stopping and starting means less fuel use and lower CO2 emissions: Anticipating traffic flow will reduce fuel consumption
3) Over-revving accelerates emissions: Modern car engines are designed to be efficient from the moment they are switched on, so revving up like a Formula 1 car in pole position while standing still only wastes fuel (and money) and increases engine wear
4) Idling is wasting fuel: If you're likely to be at a standstill for more than three minutes, simply switch off the engine
5) Shop around: Use a fuel comparison website such as http://www.petrolprices.com/ to find the best priced fuel in your region
6) Don't get lost: Don't waste fuel by going the wrong way - plan your route before leaving with RAC Route Planner: www.rac.co.uk/web/routeplanner
back to October's Car News
