Why Is The Cost Of Motoring So High?
Why is the cost of motoring so high in the UK? When you break it down these are just some of the pricing issues motorists face on a daily basis.
1. Car Prices – Like anything in business you pay for what you get, but with other things such as rising housing costs putting a financial strain on us all people simply cannot afford to have a flashy motor. And this is befitting the used car dealers who are making a quick sale.
2. Car insurance – Car insurance is the biggest bugbear for all of us, especially young drivers aged between 17-24 who are nine times out of ten paying more for insurance then the value of their car. For the small group of these youngsters that drive around thinking they are Formula 1’s next big thing this has a knock on effect for older car owners with more seeing the consequences with higher premiums. For example a 25 year old who drives a 1.2 litre Ford Fiesta with 4 years no-claims bonus pays around £650 per year on insurance, with the jump to anything newer meaning a huge premium increase is it really worth it owning a powerful car.
3. Fuel – With the current economic crisis overseas and the cost of oil increasing oil companies have had to increase their prices with the knock-on effect meaning the drivers pay more and more to fill up their vehicles. One sector hit the hardest includes those which use vehicles to transport goods; their day-to-day jobs are massively affected with short journeys costing more in fuel than at any point before.
4. Repairs and servicing – Local garages have been hit as the large players reduce their prices to compete. Car repairs and servicing still has to happen but with repairs on all new cars sold being covered by warranties and the main dealer garages lowering their prices to compete with the smaller garages it’s the local garages who feel the squeeze. The cost of acquiring the parts has lowered with more parts becoming more available online but the real cost is the labour time needed to carry out the repairs.
5. Road Tax – Road Tax seems to be rising even though the government have introduced their new pricing scheme. At some point this should be included within the car insurance or MOT payment to help all drivers cut back on costs.
Martin O’Hara looks at the cost of motoring, writing here for Euro Car Parts Ltd