James’s Blog: How much is your car costing you?

In a recent report by the RAC it was suggested that on average it now costs around £6500 a year to own and run a car. With maintenance, insurance, parking permits and ever rising fuel prices at what point does this cost reach tipping point? How much of your wage would you be willing to give up before it simply becomes too much? For a growing number that level has already been reached but it is only when you stop to think about it that the full cost of owning a car becomes clear.

Let’s face it, for many car ownership is critical to way of life, especially for those living in rural locations, where there is a lack of decent public transport, and people who simply have to commute to work by car. However, for many city dwellers like me, owning a car is more of a luxury. I don’t need one all the time, just some of the time. When, as the RAC reports, the average weekly cost of this luxury is £129, if you only use this once or twice a week that’s a hefty expense. On top of that you also have the hassle of cleaning, maintenance and parking. Then when you factor in that this £129 is paid when you are on holiday or away it all seems a bit mad!

Last year it was predicted that by 2015 the cost of a tank of petrol could hit £100. This may well be the tipping point for many. However, looking at last year’s 4.4% drop in new car registrations, it seems to be a sign that for a significant number that point has already been reached. It’s scary when you think that in 2002 the average petrol price was just 70p per litre!

This car cost calculator is a useful tool if you want to know how much your car is costing you by the day, week and year. Although it’s worth bearing in mind that the manufacturer’s miles per gallon (mpg) quoted rates are arguably often higher than in reality.

James Finlayson

City Car Club Managing Director

Posted by will on January 12th, 2012 | 1 Comment »