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http://www.dailymail.co.uk/news/article-564920/Cost-running-car-soars-2-200 -year.html Cost of running a car soars by up to £2,200 a year

Cost of running a car soars by up to £2,200 a year

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Cost of running a car soars by up to £2,200 a year. Cost of capital - PowerPoint PPT Presentation

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Page 1: Cost of running a car soars by up to £2,200 a year

http://www.dailymail.co.uk/news/article-564920/Cost-running-car-soars-2-200-year.html

Cost of running a car soars by up to £2,200 a year

Page 2: Cost of running a car soars by up to £2,200 a year

http://www.theaa.com/allaboutcars/advice/advice_rcosts_petrol_table.jsp

Cost of capitalThis sum represents the loss of income from the owner having money tied up in a vehicle, which otherwise could be earning interest in a deposit account. We used the AA's online saving rate of 5.99 per cent in conjunction with the average value for the cars chosen for each cost group. Any further charges for a loan or hire purchase will be on top of this.

DepreciationCars lose value at different rates depending on make, age, mileage and condition etc. The tables assume that depreciation costs are averaged over four years from purchase. Older cars generally depreciate at a slower rate than when brand new. We use various depreciation rates for mileages which differ from the average 10 000 miles per annum.

FuelThe price of fuel used is the UK average value. The fuel consumption figures used are typical for each of the car groups listed.

InsuranceThe value displayed is a UK average cost for a fully comprehensive policy with 60% no-claims discount

Page 3: Cost of running a car soars by up to £2,200 a year

http://www.theaa.com/allaboutcars/advice/advice_rcosts_petrol_table.jsp

Parking and tollsCar parking and toll payments are based on a national average for an urban driver.

Road taxThe value displayed on the basic guides assumes that the car was first registered after March 2001 and is the average in each price group.

Replacement partsThe replacement parts included cover those likely to be needed under normal driving conditions, such as brake materials, oils, filters, bulbs, wipers, and hoses.

Service and labour costsThe labour costs cover normal servicing and parts replacement at a dealer, using average UK labour rates.

TyresThe figure used is based on an estimated tyre life of 27,000 miles. Different values are used depending on the vehicle size or price band.

Page 4: Cost of running a car soars by up to £2,200 a year

http://www.theaa.com/allaboutcars/advice/advice_rcosts_petrol_table.jsp

Page 5: Cost of running a car soars by up to £2,200 a year

http://www.whatprice.co.uk/car/car-costs.html

Cost of Running a Renault Clio

Page 6: Cost of running a car soars by up to £2,200 a year

http://www.whatprice.co.uk/car/car-costs.html

Petrol Cost per mile = 40 x 81 / 400 = 8.1p per mileAnnual Running Cost = 8.1p x 12,000 / 100 = £972

Car InsuranceAnnual Running Cost = £350 (2 years no claims)Cost per mile = £350 / 12,000 x 100 = 2.9p Running Cost so far = 11p/mile or £1320 a year

MOT & ServiceAnnual Running Cost = £250 (authorized dealer)Cost per mile = £250 / 12,000 x 100 = 2.1p Running Cost so far = 13.1p/mile or £1570 a year

Car TaxAnnual Running Cost = £100 (authorized dealer)Cost per mile = £100 / 12,000 x 100 = 0.8p Running Cost so far = 13.9p/mile or £1670 a year

Page 7: Cost of running a car soars by up to £2,200 a year

http://www.whatprice.co.uk/car/car-costs.html

Car Wear & Tear:Annual Running Cost = £179 1 can of car engine oil = £102 bottles washer fluid = £81 replacement headlight bulb = £62 new car tyres = £1201 new washer blade = £101 new car hubcap = £121 bottle car polish = £81 bottle car shampoo = £5

Cost per mile = £179 / 12,000 x 100 = 1.5p Running Cost so far = 15.4p/mile or £1849 a year

Depreciation:Annual Running Cost = (£5500 - £3000) / 3 = £833Cost per mile = £833 / 12,000 x 100 = 7p Running Cost so far = 20.9p/mile or £2503 a year

Page 8: Cost of running a car soars by up to £2,200 a year

http://www.theaa.com/allaboutcars/advice/advice_rcosts_petrol_table.jsp

For new and used prices, also gives prices when new of used carshttp://www.parkers.co.uk/

Select a car and click on Costs and Facts and Figures of your model to get information such as fuel economy and road tax.http://www.parkers.co.uk/cars/reviews/