New car costs up 6.3%
25 November 2010
The average cost of owning and running a new car has jumped by 6.3% to £5869 per year, according to new research from the RAC.
The company's Cost of Motoring Index found a £346 increase in new cars covering 12,000 miles per year, thanks to the rising cost of fuel and increases in new car prices that haven't followed through to the used market, and therefore increasing depreciation.
On the flip-side, the RAC's pool of 17 vehicles did return a slight reduction in vehicle excise duty and the cost of finance, while the fuel cost rise was mitigated by cars becoming more efficient.
Although the figures are rising, they are still behind the 2008 level of £6034.
"Owning a car is a necessity for most people but they're once again being hit in the pockets - this time by an increase in costs which is double the rate of inflation," said RAC motoring strategist Adrian Tink, who called for the 0.76p increase in fuel duty scheduled for January 2011 to be cancelled. "Fuel continues to be a major contributor in the rising costs, with little being done to control the spiralling prices at the pumps," he said.
Looking at running costs, the RAC also found that used cars at three years and 60,000 miles are £553 more expensive to run than new, primarily due to maintenance costs, as well as poorer fuel consumption and more expensive insurance.
On the commercial vehicle side, the RAC recorded a 10.8% increase in costs to £8995 for vehicles covering 20,000 miles per year, with depreciation increasing by 20.3% and fuel up 13.4%, although lower interest rates meant a 13.5% drop in financing costs.
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