The cost of running a car has increased by 56% in the last ten years, with motorists spending £2,197 a year just to keep their car on the road, a new report has found.
Costs have become so high that many motorists are considering ditching their wheels altogether in favour of public transport or one of the many car clubs that are popping around the country.
So, how did driving get so extortionately expensive?
1 - A premium pile up
Sainsbury’s Bank says car insurance premiums have shot up 5.2% on average in the least year alone.
Drivers aged 40-50 have been worst hit with a 7% hike, while those aged under-25 are still paying extortionate amounts of money for car cover, with an average annual premium of £1,255.99.
All in all, the average driver can now expect to pay £629 for comprehensive cover, compared to £594 a year ago.
Read about how to minimise your insurance costs here
2 - Petrol prices through the roof
It’s been a remarkably expensive year for motorists. Not only have insurance costs rocketed, but the price of petrol has increased by an astonishing 18p in the last year, too.
A litre of unleaded now costs £1,08 on average, while diesel costs just over £1,17.
As if things weren’t bad enough, the cost of oil hit a record $112 a barrel recently, and this hike has yet to be passed on to customers. Oh, and Chancellor Alistair Darling is is planning a 2p increase in fuel duty in October.
3 - Death by taxes
First there was road tax, then the congestion charge, and now the government is planning a “showroom tax” of up to £950 on new cars that emit high levels of CO2.
Analysts estimate the move, which will affect many family motorists, will earn the government £735 million a year when it is introduced in 2010.
In short, motorists are being taxed off the road.
Argument grows stronger every day
Not everyone can do without a car, and there’s no getting around the fact that owning one is more convenient than not.
The problem is that, while costs have risen, the usefulness of a car has remained the same.
In fact, with traffic congestion nothing short of a nightmare in many cities, you could argue that owning one is actually less useful than before.
Ditching your car will save you more than ever before, it’s just a question of how much you’ll miss it.
OK, I’m fed up with driving. Now what?
If you don’t have an adequate public transport network in your neighbourhood, then your only real option is to join a car club (unless you plan on single-handedly funding your local taxi firm’s Christmas party every year).
If you haven’t heard of them before, car clubs provide a number of cars which you share among members.
The cars are located at various points in your neighbourhood, and you simply book a time when you plan to use it, then return it to the same parking bay when you’re done.
Great for occasional drivers
The idea is that you get the convenience of owning a car, without the monthly expenses.
Certainly if you don’t use your car often (driving less than 2000 miles a year) the savings can run into the hundreds of pounds.
But the costs can quickly add up for more frequent users - Streetcar is one of the largest car clubs, and charges £6 an hour, or £50 a day, for the use of a VW Golf.
If you’re still undecided whether car clubs are for you, read more about them here.
