herald

Sunday 20 August 2017

Cost to run a car up €110 in the past year

THE average cost of running a car has risen by more than €110 in the past year.

The AA's annual survey of motoring costs showed that the cost is now €11,934.40 to maintain a standard family car.

This is an increase of 1pc from 2012.

The cost of motor insurance rose by 3.5pc on average in the year, although new gender equality legislation meant that women experienced a sharper increase than men.

AA consumer affairs director Conor Faughnan spoke about this increase.

"The insurance changes are mainly a consequence of the gender directive, which has been fully in place since the start of the year," he said.

"We predicted last year that it would mean an improvement for men, but a hit for women, and it would result in an overall increase across the board.

"We predicted 3pc and that is about how it has worked out.

"We can't stress enough, though, that this year – more than ever – you really should shop around.

 

OBSCURE

"Plenty of people saw their insurance costs fall this year, including most AA customers, so take the time to put the research in before you buy," he added.

The survey takes into account costs such as fuel, insurance and servicing, as well as more obscure costs, such as depreciation, interest charges and replacement components.

The figure of €11,934.40 assumes that the car is bought new and kept for eight years, averaging 16,000km per year.

While the cost of insurance rose in the year, this was offset by a fall in fuel prices.

The average cost of petrol was 162.9 cent per litre in July 2012 compared with 157.4 this year.

The AA describes this drop as "modest" and said that prices are still "kept far too high by Irish taxes".

This drop does represent a saving of €82.50 in a full year, based on a car using 150 litres of fuel per month.

Drivers also had to contend with a car tax increase of nearly 30pc for Band C in last December's budget.

The cost of the new credit card format driving licence also increased the annual cost of driving by €5.50 per year.

hnews@herald.ie

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