With the rising cost of daily living, from utility bills to vehicle running expenses, it is little wonder that many are opting to try and minimise their spending, ensuring they stay a step ahead of the looming recession that has accelerated with Brexit and the Covid pandemic. The current crisis between Russia and Ukraine has also resulted in energy and food stoppages causing massive price increases that the average household now must accommodate.
Facts and figures to show how much it costs to run a car in 2022
Besides the purchase price, UK car owners spend around £3,000 to run their cars each year, the most considerable expense being fuel, which is now estimated at over £1,450 a year per vehicle, thanks to the astronomical price rises to hit us recently. Although many insurers compete for the lowest prices, the average household will still spend well over £400 + per year, with servicing and repairs close behind. If you consider road tax and any parking permits you may need, you could also be looking at another few hundred pounds a year on top.
The average cost of buying a popular car in the UK
You can spend anywhere from a few thousand pounds on a quality used car to tens of thousands or more on a new car. Popular small family cars like the Ford Fiesta or Vauxhall Corsa start from around £18,000. Many like-sized models cost considerably more, with the much-admired classic VW Golf starting in the mid-£30,000s. No real surprise that the decision to purchase a brand-new car is significantly compromised. Budget sensible households can save by buying a quality used car and staying away from the trend of owning new cars direct from the showrooms, especially when a new car depreciates in value as soon as it is driven away from the forecourt.
Rising fuel costs
For the typical family car, fuel costs average out around £1,435 a year; this is assumed on average mileage for 6,300 (petrol) and 9,400 (diesel)miles per year. Of course, these figures depend predominantly on the number of miles you drive and your car’s fuel efficiency.
At drivers Domain UK, we can help decrease your fuel consumption with some straightforward techniques that, once mastered, will help you see a real saving on your fuel bills. It is not uncommon for our clients to raise their mileage per gallon by up to 30% after taking training with us over the course of a year. This can really impact your budget in a good way.
Cost of Car Insurance
Prices can vary significantly individually, but the average cost of car insurance in the UK is just under £500 a year, and only seeing significant reductions with years of no claim discounts. Most of the factors that have the most considerable influence on the cost of car insurance are your age, the car you drive, your driving record, where you live and where you keep your car at night and during the day. It is wise to compare many insurers, and don’t be afraid to haggle!
Car Maintenance Costs
It is common sense that new cars cost less to maintain than used cars and will have a warranty to cover for the first three years (or 30,000 miles) at least, with many brands offering 5 to 7 years (50,000 miles) warranty as standard, apart from wear and tear items such as tyres, brakes, bulbs and wipers.
Buying a quality used car from a reputable company will usually come with a standard warranty of at least six months, and this can cover you for most eventualities. Still, it is advisable to look at keeping a warranty on your vehicle for as long as you can, as older cars will always cost more to repair.
It is also a great idea to have a service plan in place that will ensure that no matter where you are with your finances, you can be assured your car will not let you down with expired MOTs or minor maintenance issues. You will be able to spread your maintenance costs over a year so you can see at a glance exactly how much your transportation is costing you and help you to budget for every other expense as well.