Research finds car costs are on the up
The cost of keeping a car on the road could come close to the value of the vehicle itself if petrol prices continue to rise, new research has claimed. A study from uSwitch has found that if petrol prices increase to around two pounds and 30 pence per litre in the next year, then annual running costs could top 3,800 pounds.
Currently, prices stand at around the 117 pence per litre level, but this could increase to 230 pence per litre over the course of 2009 if crude oil prices continue to rise in the fashion they have done since the start of this year, uSwitch claims energy giant Gazprom predicts. As a result, drivers could see their fuel bills reach more than 3,300 pounds, or more than 120 pounds to fill an empty tank.
Director of consumer policy at the organisation Ann Robinson said: “We are heading towards a situation where motorists are going to be priced off the roads. At two pounds and 30 per litre a driver’s annual spend on petrol will soar by almost 2,000 pounds. Drivers are also going to need to contend with rising insurance premiums and increased road tax as announced in the Budget.”
Although opting for cheap loans to help cover the cost of a car and its running expenses may be effective, a number of other steps can be taken to help improve fuel efficiency and therefore help make personal finance go further.
Drivers have been advised by the price comparison site to drive as smoothly as possible to help reduce overall fuel consumption, as using the accelerator lightly and avoiding heavy braking will not only help to reduce the amount of fuel used, but can also cut down on wear and tear on tyres. Other tips include ensuring tyres are at the correct pressure and removing any clutter or junk from a vehicle to lighten the load.
However, consumers have also been advised that it may be wise to consider investing in newer, more fuel-efficient vehicles as this could help drivers to decrease the size of their fuel bills, while also reducing emissions and therefore helping the environment too. Those looking for an effective way to purchase this type of vehicle may wish to consider taking out a low rate loan.
Ms Robinson from uSwitch also noted that due to the fuel price increases, more and more drivers are likely to have to carefully consider when and where they use their cars. As well as this, users may have to consider giving up their cars altogether, she claimed.
The uSwitch study found that across Britain, the total spend on food could total some 104 billion pounds over the course of 2009. And the average driver will find that their vehicle is worth less than 400 pounds more than the total costs of keeping it on the road.
Research from comparison site Insurance recently revealed that drivers who tell lies to their providers could be affecting their premiums. While telling untruths could be seen as one way to cut the car insurance costs, policies could be invalidated should a claim need to be made, meaning drivers could have to foot the bill for repairs themselves.
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