Mike Waters' blog: 16 September 2011 - Hard times lead to new habits
16 September 2011
Mike Waters is head of market analysis at Arval
For most people the cost of motoring is a significant chunk of their annual expenditure. Figures from The AA show that the cost of travelling has increased by more than 16% year-on-year. And it seems that this chunk is significant enough for people to start doing something about it.
There are a number of polls around showing that drivers are being forced to alter their habits in order to cut back on their costs. According to Sixt, in London 24% of motorists have given up their car over the past 12 months saving an average annual amount of more than £2000 by removing the burden of car tax, insurance, fuel, parking and maintenance.
The public transport system makes it practical for people in the capital to give up their vehicles, not so for the rest of us, so drivers across the rest of the country are taking a different approach. Website Motors.co.uk has found that 54% of respondents have significantly changed their lifestyle due to increasing motoring costs.
Car sharing is becoming an attractive option for a quarter of people with children under 18 during the new school year as they try to tackle rising motoring costs. Of the 2000 parents questioned, 15% said soaring costs have also forced them to reduce their children's extracurricular activities as they can no longer afford to drive them around.
We are also seeing signs that business drivers are being impacted. Arval carried out some research this year that showed nearly 30% of business drivers admitted to having avoided using their own car for business journeys because current reimbursement rates leave them out of pocket.
So challenging times are creating change in the way that we operate, and the actions of those forced to change their approach suggest that we should all think about our travel habits to see how much money we can save.
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