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Cost of running a car soars by up to £2,200 a year.

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Presentation on theme: "Cost of running a car soars by up to £2,200 a year."— Presentation transcript:

1 Cost of running a car soars by up to £2,200 a year

2 Cost of capital This sum represents the loss of income from the owner having money tied up in a vehicle, which otherwise could be earning interest in a deposit account. We used the AA's online saving rate of 5.99 per cent in conjunction with the average value for the cars chosen for each cost group. Any further charges for a loan or hire purchase will be on top of this. Depreciation Cars lose value at different rates depending on make, age, mileage and condition etc. The tables assume that depreciation costs are averaged over four years from purchase. Older cars generally depreciate at a slower rate than when brand new. We use various depreciation rates for mileages which differ from the average miles per annum. Fuel The price of fuel used is the UK average value. The fuel consumption figures used are typical for each of the car groups listed. Insurance The value displayed is a UK average cost for a fully comprehensive policy with 60% no-claims discount

3 Parking and tolls Car parking and toll payments are based on a national average for an urban driver. Road tax The value displayed on the basic guides assumes that the car was first registered after March 2001 and is the average in each price group. Replacement parts The replacement parts included cover those likely to be needed under normal driving conditions, such as brake materials, oils, filters, bulbs, wipers, and hoses. Service and labour costs The labour costs cover normal servicing and parts replacement at a dealer, using average UK labour rates. Tyres The figure used is based on an estimated tyre life of 27,000 miles. Different values are used depending on the vehicle size or price band.

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5 Cost of Running a Renault Clio

6 Petrol Cost per mile = 40 x 81 / 400 = 8.1p per mile Annual Running Cost = 8.1p x 12,000 / 100 = £972 Car Insurance Annual Running Cost = £350 (2 years no claims) Cost per mile = £350 / 12,000 x 100 = 2.9p Running Cost so far = 11p/mile or £1320 a year MOT & Service Annual Running Cost = £250 (authorized dealer) Cost per mile = £250 / 12,000 x 100 = 2.1p Running Cost so far = 13.1p/mile or £1570 a year Car Tax Annual Running Cost = £100 (authorized dealer) Cost per mile = £100 / 12,000 x 100 = 0.8p Running Cost so far = 13.9p/mile or £1670 a year

7 Car Wear & Tear: Annual Running Cost = £179 1 can of car engine oil = £10 2 bottles washer fluid = £8 1 replacement headlight bulb = £6 2 new car tyres = £120 1 new washer blade = £10 1 new car hubcap = £12 1 bottle car polish = £8 1 bottle car shampoo = £5 Cost per mile = £179 / 12,000 x 100 = 1.5p Running Cost so far = 15.4p/mile or £1849 a year Depreciation: Annual Running Cost = (£ £3000) / 3 = £833 Cost per mile = £833 / 12,000 x 100 = 7p Running Cost so far = 20.9p/mile or £2503 a year

8 For new and used prices, also gives prices when new of used cars Select a car and click on Costs and Facts and Figures of your model to get information such as fuel economy and road tax.


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