12 months ago the average annual spend for someone running a petrol car worth less than £13,000 stood at £2,292, but this year the figure is £1,913. That’s a reduction of 18 per cent, and sees a turn around after many years of increasing costs.
The AA says this change can be attributed to a major fall in insurance premiums as well as modest reductions in the cost of fuel.
In addition to that, the cost of taking a vehicle to a garage has dropped. The average cost of maintenance now equates to 4.98p per cent mile, almost half of figures reported during 2013.
Those that own cars worth between £13,001 and £18,000 have seen their annual costs reduce from £3,350 to £3,011, while cars in the £25,000 bracket now cost an average of £5,070 opposed to £6,332.
The news isn’t quite so good for Diesel drivers, however, with prices at the pump rising by 6p per litre.
AA spokesman Luke Bosdet, said there have been major “peaks and troughs” in the cost of motoring during the past five years, but these figures suggest that the “storm” has “abated”.
Speaking to the Daily Telegraph, Malcolm Tarling, media relations officer for the Association of British Insurers (ABI), attributed a fall in the number of bogus no win no fees claims against insurers as the main reason for cost reductions.
The cost reduction was welcomed by Richard Lloyd, executive director of the consumer champion Which?, but he stated that insurers should be encouraged be more up front with their clients when sending out renewals, as it would encourage more to shop around for cover.
Mr Lloyd feels insurers being forced to print last year’s prices on documentation would give consumers a clearer picture to compare as well as put pressure on firms to keep their premiums at competitive values.
The lower cost of motoring appears to be having a positive effect on car sales, with figures published by the Society of Motor Manufacturers and Traders showing a 7.7 per cent year-on-year increase in purchases in June.
Without question, motoring is most expensive for new drivers, but the government recently moved to reduce the cost of people gaining their licences by announcing that it will be reducing the price of theory tests by 25 per cent.