Monday, May 21, 2007
Category:
Secured Loans
Research conducted by leading car company Zurich has found that British motorists are stacking up over £51 billion pounds a year just to keep their vehicles road worthy.
Mark Searless, chief marketing officer at Zurich Insurance says, “The cost of motoring has risen dramatically over the past few years, putting drivers under increasing financial pressure. The most worrying findings from our research are those that show that some drivers are risking their own and others’ safety in a bid to save money. We need to change those attitudes and remember that it is a legal requirement to have both a valid MOT and insurance. Everyone pays an extra £30 per year on their premium as a result of accidents that are caused by those with no insurance. With other costs, it’s vital that people budget carefully, especially when it comes to vehicle maintenance. We all have a duty to make sure our roads are kept as safe as possible.”
The study conducted by Zurich shows that UK car owners spend an annual average of £1,776.62 each on day to day costs. These costs include vehicle tax, fuel, parking and maintenance. More than nine in ten motorists spoken to during the research believed that car costs had increased over the last five years and for a third of these motorists by over £400 every year. This increase has meant careful budgeting, 74% admit that rising costs have meant that they are forced to budget more carefully.
These rising costs mean that many drivers (a fifth), in a bid to reduce their increasing motoring bill, admit to delaying or avoiding paying their motoring costs all together. These motoring costs include insurance, road tax and parking fines. Of these drivers, seven in ten have tried to cut costs further by putting off paying for repairs and maintenance. Even though MOT and vehicle taxes are legal requirements, it has not stopped some motorists from delaying payments, 32% put off paying vehicle tax and 30% on paying for an MOT. Also while 22% have admitted to paying for their car insurance a little later, 3% admit to driving without insurance altogether. Although with this cost cutting, it seems that few UK motorists are likely to make the ultimate sacrifice and ditch their cars altogether. Nearly three quarters of motorists surveyed by Zurich said that they could not live without their car, and just 7% would consider selling their main car if costs continue to rise.
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For motorists who are finding that their credit is running away with the rising car costs, a
secured loan could be one of the many options to consider. A debt consolidation loan could help reign in all those monthly credit card payments into one straightforward amount payable over a term to suit the borrower from 5 to 25 years. A secured loan could be used to pay those all important motoring costs like an MOT or vehicle tax. Motoring repairs and maintenance could also be paid for using a personal loan. If using a secured loan to consolidate debt, homeowners should remember that repaying borrowing over a longer term will increase overall interest charges.
