Motorists will be waking up to a financial hangover this New Year, as they discover the cost of running the average new car has grown to nearly £5,000 a year, or £14 a day, according to the latest RAC Cost of Motoring Index.
The Index, which tracks all costs associated with owning and running 17 different models of car also reveals that rising fuel prices have increased the yearly fuel bill to Ł1,154, or Ł22.20 a week, an increase of 11% in six months.
However, the largest cost factor in all new cars remains depreciation, with the average person losing Ł1,987 a year, or more than Ł38 a week.
Commenting on the Index, RAC Technical Director, David Bizley, said:
“These new figures mean that many motorists will be waking up with a New Year headache.
“As the Christmas bills begin to land on the doormat, for many these figures will deliver an unwelcome New Year message. Splashing out on Christmas often means that their thoughts turn to the cost of what’s under the tree rather than on the driveway.
“It’s not only Christmas that seems to cost more and more as rising fuel costs and growing depreciation mean bad news for motorists.
“The UK has the cheapest pre-tax fuel in the EU, but amongst the highest pump prices so the Chancellor’s decision to freeze fuel duty will be welcome news for motorists, particularly as the cost of motoring continues to rise.”
The only good news for motorists is the fall in quoted insurance premiums, finance and maintenance costs. Over the last six months:
- average annual insurance costs fell from Ł405 to Ł389 – a 4% drop
- average finance costs fell from Ł990 to Ł948 – a 4% drop
- maintenance costs fell from Ł292 to Ł271 – a 7% drop.
The latest RAC Cost of Motoring Index looks at a sample of 17 different cars as at September 2005. The Index helps motorists understand how much their car really costs them in order to make well informed decisions when buying a new or used car. Uniquely, it tracks all the costs associated with owning and running a car from the initial purchase to depreciation, the cost of insurance, fuel, servicing, VAT and breakdown cover.
Ends
RAC Cost of Motoring Index (PDF 100k).
Notes to Editor:
The RAC Cost of Motoring Index is based on data provided by Deloitte - Actuarial and Insurance Solutions. It tracks all the costs associated with owning and running 17 different models of car, from the initial purchase to depreciation, the cost of insurance, fuel, servicing, VAT and breakdown cover.
With 7 million members, RAC is one of the UK's most progressive motoring organisations and the first choice provider for both private and business motorists. Whether it's roadside assistance, windscreen repair and replacement, learning to drive, vehicle inspections, legal and financial services or up-to-the-minute traffic and travel information - RAC is able to meet all motorists’ needs.
Aviva recently announced its acquisition of RAC. The acquisition brings together RAC's powerful brand and customer base with the expertise and leading position in motor insurance of Norwich Union Insurance (part of Aviva). Norwich Union is the UK's largest insurer, insuring one in seven motor vehicles and with a market share of around 14 per cent.
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