Cars are getting more expensive to run, which is rubbish news

24 November 2010


Soon, you won't be able to afford a train ticket, unless you're prepared to sell your lungs to science before you've died. That's okay - you can always drive right?

Well, not for long because thanks to rising petrol prices and insurance premiums, there's been a 6.3% increase in the average annual cost of owning and running a new car in the past year.

Soon, the UK will be famous for being The Housebound Nations.

The RAC, in its cost of motoring index, said today that the £346 increase is twice the rate of inflation and equates to £112.87 a week, or 48.91p a mile. The index covers a whole host of costs including fuel, insurance, maintenance, road tax, breakdown cover, depreciation and finance.

The RAC reckon that running costs (excluding the cost of ownership) have increased by £197 (8.9%) to £2,417, up from £2,219 last year and amounting to a weekly cost of £46.48 – an increase of £3.79 a week. It's not much cheaper to own and run a used car, which they reckon stands at £4,441 a year, or £85.41 a week. Of course, the running costs of used cars are more expensive to run than new cars (to the tune of £553) thanks to maintenance and fuel consumption.

Diesel and petrol prices have risen by 14.8% and 12.6% respectively, which adds up to a depressing annual bill.

RAC motoring strategist Adrian Tink said: "Rises in the cost of motoring for Britain's 34 million drivers shows no sign of ending. Owning a car is a necessity for most people, but they are once again being hit in their pockets – this time by an increase in costs which is double the rate of inflation. Fuel continues to be a major contributor in the rising costs, with little being done to control the spiralling prices at the pumps. It is time for the government to look closely at the problem and take action, starting by cancelling the planned fuel duty rise of 0.76p in January 2011."

In the new year, there's a nice rise in VAT to 20% for everyone to look forward to, which will invariably take us into a period of record petrol prices. Time to check the prices of rollerskates then...

TOPICS:   Motoring   High Street News   Economy


  • Yue
    As long as big business and the private sector flourish it's all good. Every day people don't need wads of cash to keep going, we'd all live long healthy lives if we didn't have to struggle. Better the wealth stays in the hands of the privileged who can use the money for keeping themselves in a position to look down on anyone trying to make lives for themselves. As long as I can afford a scummy bedsit in one of a dozen fleapit houses owned by a slumlord and pay my taxes I shouldn't have to complain. Good job the Tories are in to make sure we don't get above ourselves. The VAT rise is a good thing, I'd just cleared my overdraft and my bank was worried that they might go under without the interest I was paying. Otherwise I might have seen a return on my meagre savings.
  • me
    everything is going up :(
  • The B.
    Oh God, he's off blaming the Tories again, next we'll have to listen to how Saint Blair saved the taxpayer from even more expensive oil by launching a war in Iraq to get us cheap oil.
  • Yue
    Bob, What colour is the sky in your world?
  • The B.
    Are you starting on the sky for being blue now? I assume you only like the sunrise and sunset? Back to the topic at hand, presumably you were completely behind both Labour governments that nearly bankrupt this country? Yes the Tories are crappy but they're still better than the shower that they replaced.
  • Mr G.
    "The Housebound Nations"? I can't believe you didn't do a "Home Counties" gag...
  • Yue A.
    Hopefully this will post The Tory ineptitude with Black Wednesday and John Major refusing to see Norman Lamont (who had a plan to fix things) for 3 days allowed the system to take our house, the money from my parents bank account and put my Dad in an early grave. They all have quite cushy positions on company that make Billions now. The Tory party is about business, Labour became more like them but do look at the people. I'm not staunch red at all, I don't want to think about politics. Under Labour I was able to get better jobs and get on with my life and not think about the Government at all, now I see my friends being made redundant because of these cuts, the idea of owning my own home become a nightmare and a seriously worrying next couple of years. I grew up Under the Tories, it was bleak and it will be again. I replied to you on the other thread btw and would be interested in your views and reply. There is a big picture and it worries me. And the fact you've come to the conclusion that these guys are better worries me even more. There is a worldwide recession so any party would have struggled, as I mentioned before there was 1% growth in our economy in the last quarter under Labour and other countries modelled their economy on Browns plan. In all seriousness, I felt safe under the last Government, right now I'm scared shitless. Bitterwallet, having problems posting.
  • The B.
    Yue, I'd question the safety you felt under Labour, yes, it was a nice cosy little number while it lasted and I think because of that some of their more dubious policies were overlooked. Anyway, seeing as the sheer volume of money they squandered whilst in power has left the country the second most indebted country in Europe after Greece (% of gdp), even Ireland is in less debt than us currently, you can only wonder exactly what sort of situation we'd be in now if they'd stayed in power. Frankly, I don't think that any political party in this country is fit for purpose but I believe that if Labour had stayed in power we'd now be turning to the IMF or the EU to request an enormous loan to help Labour pay to keep all of the non-jobs in it's stongholds (generally areas of low employment). I grew up under Labour in the 70's and the Tories in the 80's, I remember the market crash and my mum being made redundant, all of the worry about possibly losing the house (sorry your parents did btw, can't have been nice). However, I also remember the power cuts of the 70's, the stranglehold that the unions had on Labour, Thatcher smashed it but people like Bob Crow are still trying to make a mockery of the unions role. A union is there to protect it's workers, not to demand above inflationary pay rises year on year holding businesses across the board to ransom to get it's own way. The thing that pisses me off about both parties is that whatever happens it's always the middle class that get screwed, I'd like to see the ultra rich getting a shafting for once but the application of the principle is the problem, how do you pin down someone like Phillip Green who's put everything in his wife's name and registered it all in Monaco? You can only screw his company, at which point you have to screw all companies which affects the shareholders/staff/etc, so it's still biting someone lower down the food chain in the arse.
  • Royal A.
    I agree with Yue. Tories don't care about the people in the rat race, increasing VAT by 2.5% is going to do nothing except physcologically scare people away from the high streets and knock consumer confidence - which will result in a double dip recession. The recent increase in inflation will force a rise in interest rates meaning that the economy, which has been artifically held up with the record low rate will collapse as people already on the brink of brankruptcy will surely struggle to pay their mortgages and so default. This will result in bad debts for the lenders - which in turn leads to...yep another bailout. The UK is already bankrupt, the low interest rate is masking this! The Tory government are too scared to hit the banking industry - companies like GS reserve around £5billion to pay out to staff as bonuses - this needs to be taxed - especially when the country is in financial crisis! Labour are of course partly responsible for this mess however - Tories are using them as an excuse to carry out their draconian measures. If anything, businesses need to be encouraged here with a low corp tax to help increase the number of jobs- after all it's people in jobs and not blowing money on useless wars which will help the economy recover. If you're still reading this at this point, "Hello"
  • The B.
    The inherent nature of any government is it always blames the government beforehand (frankly most of the time they're right), but then proceeds to carry on bolloxing it albeit in a different fashion. The problem here is that people like Gordon Brown/George Osborne are frankly scared of big business, for starters you've got to run the gauntlet of needing to go back and work for them again once you're tenure's up, but more importantly if you start taxing it heavily it'll simply run offshore through an elaborate tax network losing you the small amount you already garner. Part of Labour's initial election promise before coming to power was that they'd tax the super-rich to the hilt, they soon dropped it once they realised that everyone was threatening to move offshore, the Tories have just done exactly the same thing. Which is why they (whoever's in power at any given moment) always screw the middle classes because they're rich enough to be taxed but poor enough to not be able to utilise a tax avoidance system, although one of the problems with the definition of the middle classes is that the 40% tax bracket has failed to increase in line with inflation/the cost of living, meaning that more and more people are being taxed at 40% by virtue of getting an inflationary pay rise which puts them in that bracket, it's a neat way to ensure that sooner or later only the very poorest won't be being screwed at 40%. And breathe.....
  • Thomas 9.
    if i had a car, i would drive it all day long. i would drive in fields and shout "out the way cows!". mum and dad would be way cross if they found out. and the farmer too.

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