Article date: 5 January 2006
Motorists will be waking up to a financial hangover this NewYear, as they discover the cost of running the average new car hasgrown to nearly £5,000 a year, or £14 a day, according to thelatest RAC Cost ofMotoring Index (PDF 100k).
The Index, which tracks all costs associated with owning andrunning 17 different models of car also reveals that rising fuelprices have increased the yearly fuel bill to £1,154, or £22.20 aweek, an increase of 11% in six months.
However, the largest cost factor in all new cars remainsdepreciation, with the average person losing £1,987 a year, or morethan £38 a week.
Commenting on the Index, RAC Technical Director, David Bizley,said:
“These new figures mean that many motorists will be wakingup with a New Year headache.
“As the Christmas bills begin to land on the doormat, formany these figures will deliver an unwelcome New Year message.Splashing out on Christmas often means that their thoughts turn tothe cost of what’s under the tree rather than on thedriveway.
“It’s not only Christmas that seems to cost more andmore as rising fuel costs and growing depreciation mean bad newsfor motorists.
“The UK has the cheapest pre-tax fuel in the EU, butamongst the highest pump prices so the Chancellor’s decisionto freeze fuel duty will be welcome news for motorists,particularly as the cost of motoring continues to rise.”
The only good news for motorists is the fall in quoted insurancepremiums, finance and maintenance costs. Over the last sixmonths:
- average annual insurance costs fell from £405 to £389 –a 4% drop
- average finance costs fell from £990 to £948 – a 4%drop
- maintenance costs fell from £292 to £271 – a 7%drop.
The latest RAC Cost of Motoring Index looks at a sample of 17different cars as at September 2005. The Index helps motoristsunderstand how much their car really costs them in order to makewell informed decisions when buying a new or used car. Uniquely, ittracks all the costs associated with owning and running a car fromthe initial purchase to depreciation, the cost of insurance, fuel,servicing, VAT and breakdown cover.
Notes to Editor:
The RAC Cost of Motoring Index is based on data provided byDeloitte - Actuarial and Insurance Solutions. It tracks all thecosts associated with owning and running 17 different models ofcar, from the initial purchase to depreciation, the cost ofinsurance, fuel, servicing, VAT and breakdown cover.
With 7 million members, RAC is one of the UK's most progressivemotoring organisations and the first choice provider for bothprivate and business motorists. Whether it's roadside assistance,windscreen repair and replacement, learning to drive, vehicleinspections, legal and financial services or up-to-the-minutetraffic and travel information - RAC is able to meet allmotorists’ needs.
Aviva recently announced its acquisition of RAC. The acquisitionbrings together RAC's powerful brand and customer base with theexpertise and leading position in motor insurance of Norwich UnionInsurance (part of Aviva). Norwich Union is the UK's largestinsurer, insuring one in seven motor vehicles and with a marketshare of around 14 per cent.
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