Wednesday, November 25, 2009
Category:
Consolidation
According to an estimate by Sainsbury’s Finance, the annual cost of running a car has risen by approximately 2.68 percent since last year.
The Bank’s calculations show that the average annual running cost now stands at £2,338, not including any interest repayments on car loans. In contrast, the estimated figure stood at £2,277 in 2008 and £2,100 in 2007.
However, the greatest price increase is reportedly car insurance, which has risen by virtually 13 percent since 2008 and by 23 percent since 2007. The second most significant price increase is reportedly tax, which has risen by 8 percent in the past 12 months and by 22 percent during the past 24 months.
Further annual cost comparisons revealed that fuel prices are now a little lower than they were in October of last year, but higher than they were in 2007. It was found that fuel sets the average car owner back approximately £1,266 per annum. Other costs to have fallen slightly during the past 12 months are servicing costs, which have decreased as a result of the deflationary effects of the recession.
Sainsbury's Car Insurance Manager, Ben Tyte, commented: "While certain costs of running a car have fallen during the past year, compared to 2007, the cost of motoring has still increased fairly significantly with road taxes and insurance premiums both on the rise. The cost of driving a car can be kept better in check by shopping around, particularly for car insurance and servicing."
Sainsbury’s Finance has suggested that motorists could also save money by thinking about the price that they are willing to go up to for their car. Research has shown that 117,000 prospective car buyers between February and July 2009 were not intending to barter over the price. An additional 304,000 individuals admitted that they were only set to barter ‘slightly’ despite the potential for a discount.
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Homeowners who have found their costs increasing, and who have multiple credit and store cards, could consider taking out a secured loan to consolidate these into one place. A secured loan for debt
consolidation could leave the borrower with just one monthly repayment as opposed to juggling several existing commitments. This new monthly sum could even be lower than current outgoings. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
