The average annual cost of having a new car has increased by 6.3% in the last year, according to the RAC’s Cost of Motoring Index released today.
The average cost of owning and running a new car has risen to £5,869 in 2010 compared to £5,525 in 2009 – an increase of £346, twice the rate of inflation.
Fuel prices are hitting us hardest
The RAC has identified the rising price of fuel as a key attributer to the cost of motoring increasing.
The average cost of fuel for a motorist in 2010 is £1,300 – an increase of £116 on the previous year.
Both diesel and petrol prices have soared in the last 12 months, increasing by 14.8% and 12.6% respectively.
However, the average fuel consumption figure for new cars has dropped by 2.7%, which is positive news in light of the ever-increasing cost of diesel and petrol.
Used cars still cheaper to own than new
Owning a used car is still more cost effective than a new model, according to the Cost of Motoring Index.
The ownership cost of a used car is £4,441 – £1,428 cheaper than a new car.
When looking closer at the index, you’ll actually find a used car is more expensive to run than new, at the rate of £553 on average a year, once you factor out deprecation. Maintenance costs are much higher (£437) for a used car, fuel consumption is worse and car insurance costs more for older vehicles.
What the Cost of Motoring Index factors in
When conducting the Cost of Motoring Index, the RAC includes the cost of fuel, insurance, maintenance, road tax, breakdown cover, depreciation and finance.
When you take away both depreciation and finance, the day-to-day cost of running a new car has increased by £197 to £2,417.
On average, it costs £736 more to own and run a car than it did before the financial crisis in 2007.
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