Cost of running a car up £2,000

Local & National

Soaring fuel prices and road tax take their toll

Monday, May 12, 2008

By Claire McNeilly

The cost of running a car in Northern Ireland has risen by up to £2,105 in just 12 months.

Soaring fuel prices and road tax, as well as heavy loss of resale value, have taken their toll and pushed up the price of driving by four times the rate of inflation, according to the AA.

Worst hit by rocketing annual running costs are owners of 4x4 vehicles, due to hikes of around 22% on last year's outlay, but the average large family car has also seen a rise of £601.

Speaking to the Belfast Telegraph today, Luke Bosdet, AA public affairs unit spokesman, said that Northern Ireland motorists were, nevertheless, faring slightly better than their UK counterparts.

"Petrol and diesel costs are down on the national average of 12% and 11% respectively," he said. "Northern Ireland insurance figures have remained a lot more static than in other parts of the UK, which is why the increase in running costs hasn't been as big.

"But drivers in Northern Ireland are still paying significantly more than this time last year."

The crippling costs of running vehicles have been felt to some extent by all motorists across the province.

Drivers of the popular Land Rover Discovery, for instance, saw their yearly spend rise, on average, from £10,836 to £12,941 for petrol, or from £9,203 to £11,256 in the case of diesel.

Likewise, Ford Mondeo drivers have seen a substantial increase as petrol users had to find £5,451 last year to run the car — representing an 11% (or £601) hike on the 2007 figure.

Their diesel counterparts also felt the pinch, with the yearly cost now up almost 10% (or £507) on last year to £5,285.

Running costs of a Ford Focus — one of the most popular cars — have also increased significantly, by £404 or 9.5% (petrol) and £554 or 13.8% (diesel).

That's bad news for the smaller family, whose budget has been squeezed to incorporate the petrol hike from £4,265 in 2007 to £4,669 this year, or the rising diesel costs from £4,022 to £4,576.

The increasing cost of keeping a car on the road is the just latest blow to beleaguered consumers who have been hit with drastic rises in food, housing, gas, electricity — and coming soon, water — bills.

Indeed, millions of families are now having to spend over £1,000 a year extra on their grocery bills after yet more punishing price rises.

The annual increase in a basket of essentials surged to 20% this month, according to new figures released today by MySupermarket.co.uk, the price comparison website.

Meanwhile, to rub salt into motorists' wounds, big rises in Government-imposed road tax has reduced car resale values, leaving many paying off car loans in motoring 'negative equity'.

While some vehicle owners can no longer afford to run their cars, they also can't afford to sell them because they would lose to much money, the AA Motoring Costs 2008 report said.

The results of the study has helped fuel demands for the Government to abandon plans to impose a 2p-a-litre tax increase in October.

As oil prices ascended to new highs of more than $124 a barrel recently, petrol and diesel prices look more likely than ever to hit the £1.50 a litre mark by September, as predicted by some industry analysts.

Fuel prices in Northern Ireland have risen by up to a staggering 23% in the last 12 months, which means the average large family car owner must devote one-fifth more of their annual budget just to keep the tank filled.