Car running costs on the creep

The cost of owning and running a car has soared since 2016, according to new research by Vantage Leasing.

Its report shows showroom prices have shot up by 12.3%, according to figures published by the Office for National Statistics (ONS) as part of its consumer price index.

Automotive industry insiders argue that, faced with increased importing and raw material costs, manufacturers have raised list prices and reduced customer discounts to compensate.

Other key ownership costs have increased, too. Figures show that the average car insurance premium in the third quarter of 2019 was £783 – a £46 increase over the average cost in the third quarter in 2016.

Typical maintenance costs have also risen. The average cost of replacement car tyres has increased by 6.4 per cent since July 2016, while the cost of spares and accessories has jumped by 8.7 per cent. The cost of vehicle maintenance and repairs has jumped 9.2 per cent.

There is some good news for motorists; while new car prices have risen, used car prices have dropped, with data suggesting that the average second-hand car cost 4.4 per cent less in October 2019 than in July 2016.

Counting against this, statistics reveal that wages have risen since 2016, while the cost of buying and running a car hasn’t risen as steeply as the cost of heat and power for our homes.