For most of us, a car will be our first big purchase in
life. But the cost of running a car is ongoing and runs into
several £1000s a year.
Online car insurance provider, elephant.co.uk has calculated the annual
running costs for three motorists with different circumstances.
The total annual costs range between £1,556 for a small
car with low annual mileage and £4,471 for a large car
with high annual mileage. But it is advising motorists that
if they are aware of the costs of running a car, they may be
able to reduce them by £100s a year.
It has taken into account everyday costs such as petrol and
parking, annual costs such as tax and insurance and also repair
costs and servicing. It did not take into account loan repayments
or depreciation in the value of the cars.
Head elephant at elephant.co.uk, Nicole Joyce, said, "A
car is essential for most people and certainly makes life easier,
but when you look at the annual running costs, it is quite
shocking. For everyone who drives, there are unavoidable costs
of running a car, but there are other ways you can save money.
We want motorists to stop and think about their own running
costs and ways they can reduce them."
elephant.co.uk's three example drivers all have different
circumstances, and so their motoring costs vary. A car with
a larger engine costs more to tax, it will be less economical
with fuel. An older car will need an annual MOT, it may need
repairing more often. Some drivers will have to pay congestion
charges or parking fees, some will pay more for breakdown cover
than others and all will pay a different amount for their car
insurance.
All the examples below include one year's comprehensive insurance
with elephant.co.uk.
Example 1 - Small car driver - 21-year-old female student
living in Edinburgh driving a 1994 Ford Fiesta 1.1 LX, driving
5,000 miles a year. |
