Story in today's Independent says drivers often feel that they have been unfairly targeted by the Treasury, with the duty on petrol having increased dramatically since 1997. But, says the newspaper, the rises in the costs of running a car have been more than offset by the falling cost of buying and maintaining a car in real terms. For example, a Ford Fiesta with a 1.25-litre engine cost £9,165 when Labour came to power. Consumers can buy a similar model 12 years later for £9,995, "making it much cheaper once inflation is factored in. The cost of maintenance has also fallen sharply as cars have become more reliable," it adds.
Anyone here enjoying that 'better off' feeling?
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Consumers can buy a similar model 12 years later for £9 995 "making it much cheaper once inflation is factored in.
It depends on how much your income has increased (or decreased) relative to the car price increase.
The cost of maintenance has also fallen sharply ascars have become more reliable " it adds.
My car maintenance costs are largely routine services and tyres etc and I haven't noticed those costs falling sharply.
Where on earth did the Independent get its data?
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Servicing is now cheaper on a cost per mile basis as service intervals have increased.
10 years ago my Fiesta diesel required a service every 6,000 miles and would cost about £100. Every 6th service (maximum, better to do it every four or five to prevent failure) it needed a cambelt. For 36,000 miles budget for 6x100 and £200 for the cambelt - £800
IIRC the interval is now 12,000 miles a cambelt is now every 7 or 8 services. 36,000 miles of services will now cost about £400.
Not much else else has reduced in cost by 50% in 10 years.
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Anyone here enjoying that 'better off' feeling?
Probably not - it's just human nature to grumble. But I'm pretty sure motoring is (overall) cheaper than it has been. Almost everyone can manage to drive some car or other, and it's not simply because they have no alternative. It's mainly because they can, that there are now fewer viable alternatives.
For some, the hardest expense can be insurance, and since cars can still be driven without it, it is sometimes 'overlooked'.
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complete tosh isnt it
real costs have all gone up
its figure manipulation
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I think there's some truth in the hypothesis.
Ten years ago (pre-mass-internet remember..) we were in the throes of 'rip-off Britain' & just emerging from the last recession - real car prices have gone down since & real incomes have certainly increased - so a real decrease there.
Service intervals & warranty coverage (both new & subsidiary) have also increased in interval & coverage.
Some costs that have increased: spot price garage labour rates & depreciation.
Overall, I'd wager (even with relatively increased fuel costs offset against better overall economy) that costs for the average household of running a car have decreased.
Interestingly, high insurance premiums reflect that cheapening in overall costs: people can afford the 'simple' physical costs much more easily, which has encouraged more younger drivers (which raises overall risk curves for everyone). The increased number uninsured drivers again emphasises that acquisition & physical running costs aren't too much of a problem - only insuring once bought. This is a bit of a +ve feedback loop in fact: insurance costs will outstrip inflation for quite a while, in my view.
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Cost of motoring going down? >>
It sure is. Interest rates down from the heady days of Major account for much of it, and improvements in design and manufacturing, plus reduced production costs and lower real [i.e.inflation adjusted] fuel costs all contribute.
How else do you explain the sheer increase in numbers of 17 year olds driving their own cars these days?
[unless of course the 17 year olds today have suddenly become richer on passing their driving tests].
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17 year olds are being financed by their parents and still being fronted on the insurance
i see it all the time,i used to explain the legality of it but now just take the money
however i often refuse to sell a car to a 17 year old boy unless ive met him and form an opinion of his driving to be
i would rather keep the car than have a constant headache of broken bits due to misuse ,remember to the parents they are perfect cherubs
(another one died by me 3 weeks ago,he too found trees are indeed hard)
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17 year olds are being financed by their parents and still being fronted on the insurance
i see it all the time,i used to explain the legality of it but now just take the money
...which certainly backs up the idea of motoring becoming, relatively (no pun intended..!),
cheaper. Unless parents are becoming more generous, it must mean buying cars for their cherubs is (more) affordable and/or they're richer overall. The insurance 'fronting' also confirms that insurance is more expensive because there are more of these higher risk drivers about.
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The fact that some costs of motoring may have fallen doesn't detract from the argument that the tax take from motorists has continued to rise, hasn't it?
I pay more for VED than I ever have, more in duty and VAT on fuel than I ever have and even insurance premium tax on the car insurance and breakdown cover.
So it must follow that I'd be better off still if HMG weren't having me over every time I go anywhere near the car.
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People have a lot more money these days, ("reccesion" or not).
Its easier to run a car, and get the insurance to pay for it monthly payment options etc, there is more choice, and options of obtaining cars that make it easier for a wider range of people.
My Parents could not afford a car when i was young and we made do. now me, my sister and my parents have a car each, so we went from a no car family, to a 4 car family (we dont all live in the same house BTW) because as i say there is a lot more money avaialble than there was say 30 years ago
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"...People have a lot more money these days"
perhaps a more accurate description would be: people have a lot more access to money these days - borrowing, in other words! Even with the credit crunch, manufacturers/dealers will arrange loans fast; insurance companies/retailers allow monthly payments (at a price, of course). Government-encouraged living on debt has helped form our economic problems. And with 90% of the workforce still in jobs, it's all going to continue.
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Anyone here enjoying that 'better off' feeling?
Very much so - I have always enjoyed fast comfortable driving - since I got married in 1980 I have spent a grand total of £16,450 on three second-hand cars for myself - and I still have two of them [Triumph TR7 conv and Audi A6]. They require very little servicing and repair - which I mostly do myself. But I only do about 4000m per annum.
Avoiding depreciation is the main thing.
I feel very sorry for people who were formerly unable to afford a car now having to have one to get to work. Until recently most town jobs were within walking distance [factories, hospital, offices,shops]. They often lack the will and ability to avoid spending a huge proportion of their often low takehome pay keeping it on the road. Just getting it past the MoT can often cost a week's take home pay - or more. Still, I suppose that's good for the motor trade - which can easily inflate costs for the ignorant. [see my previous posts re attempt to do the cat scam on my son]
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