November 23, 2011 in General Motor Trade News & Info
Most of us wont be surprised to hear that the cost of motoring has risen well above inflation rates, but many will be surprised to hear by just how much it has increased.
According to a recent study, the cost of running a car has risen by over £800 in the last year, this is almost three times the rate of inflation, a 14% increase for the average motorist on last years figures.
Many motorists are feeling the pinch as costs continue to increase. Fuel prices are at record levels, insurance premiums have risen and along with the drop in used car values, its hardly surprising that so many drivers are struggling to maintain one car per household, let alone two.
The RAC, responsible for the study, claim that fuel prices have added around £160 to the average motorists bill each year.
Insurance premiums have risen by around 14%, the average premium is now at £551.
To put the rises into context the RAC study showed that an average driver, who would have paid £5,870 in 2010 on motoring costs, will now be paying £6,689.
These headline figures may be adding to the case for George Osborne to abandon plans to increase fuel duty next year.
Adrian Rink, Motoring Strategist for the RAC comments, “With the annual cost of motoring approaching seven thousand pounds the price burden of car ownership is hitting drivers hard. The increase of almost three times the rate of inflation is crippling drivers’ wallets and something needs to be done to stem the tide”.
Rink goes on to appeal to the Government, “With fuel prices continuing to be the biggest single running cost, UK drivers want action from the Government. At the very least, we are calling for the scrapping of next year’s planned fuel duty increases”.
Rink also goes on to say that it isn’t just the responsibility of the Government to resolve the situation, “Oil companies need to be more transparent over pricing so that drivers know exactly where their hard-earned money is going. The Cost of Motoring Index makes it quite clear that motorists are already paying way over the odds. Further increases to fuel prices are simply a step too far”.