Used Car Motoring Costs More Than New Shocker!
Wednesday, 1. December 2010
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Insurance and fuel duty increases have been blamed for the inflation busting increase of 6.3% announced by the RAC in their Cost of Motoring Index. The average cost has increased by £346 over last year’s cost taking it up to £6,000. Depreciation has also had an effect although some costs such as Vehicle Excise Duty (car tax) and car finance have dropped. The annual study assesses the running costs of 17 new cars from the Toyota Yaris to the Land Rover Discovery. Each model’s bills are weighted to reflect their comparative popularity. Whilst the average cost is now £112.87 per week to run a new car it is of course an average. For example a Vauxhall Corsa costs £1,404 per annum less to run than the average over a year, whilst a Ford Galaxy costs £1,947 a year more. The interesting part of this index is that used cars are not much different to a new car. The average 3 year old car is cheaper to own at a cost of £4,441 per annum but once depreciation is factored in a second hand car costs £605 more. Interestingly the average cost of running a 3 year old car is £558 more than a new car which is quite different to most people’s perception. To read the full report, go to: http://media.rac.co.uk/pdf/2010-rac-cost-of-motoring.pdf Let me know what you think? By Graham Hill
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TaxTeddy Says:
This is classic stuff Graham.
Clients are always asking about buying cars – usually from a tax perspective – but I often point out that it’s abut the whole deal, not just tax.
In future, I’ll point them to your blog!
Cheers