Annual car ownership cost rises by over 6%Average ownership cost for a new car is now £5,869

24 November 2010

Fuel pump

Rising fuel costs are contributing most

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.

Work out how efficient your car is with our fuel economy calculator

Seat used cars

Owning a used car is cheaper than new

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.

Read our tips for buying a new car or our advice on buying a used car

Mazda workshop

Maintenance costs are factored into the Index

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.

Read all of our helpful car running costs advice

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