Rising Cost of Motoring
The cost of motoring has risen by as much as 14% in the United Kingdom over the course of 2011, well above the average rate of inflation in the country, and meaning that the average cost of owning a vehicle is now around £128.64 per week, according to new figures that have been released by the RAC.
Aside from normal things such as car owners paying out for extended auto warranties, the major reason for these crippling costs seems to be the depreciation rate of vehicles. In comparison to 2010, an average car this year lost as much as 16.67% of its value. The next largest year-on-year rise was the cost of car insurance, increasing by 14.38% since last year. The cost of fuel has also risen by 12.4%, and that is prior to the further two rises in fuel duty that are planned for next year. Lesser factors, which nonetheless still affect the rise in prices, include car maintenance costs that have gone up by 8.8% since last year, and an increase of 9.85% in car finance costs.
The RAC figures, which are based on the average costs of 17 different brand new cars, suggest that the overall cost of motoring per driver has gone up by as much as £1,556, taking the total figure from £5,870 to a wince-inducing £6,689 per annum.
"It's already a tight squeeze for households in the UK at the moment and as such an increase in driving costs at three times the rate of inflation isn't good news" notes a spokesperson for the car insurance comparison website Tiger.co.uk.
published: 09/12/2011 14:00:00