The average cost of running a car has fallen by €178.05 or 1.6pc on the same figure for last year, according to the latest AA’s calculations, bring the cost of running a family car for a year to €10,671.37.
Despite a minor increase of 0.46pc in the cost of fuel, recent CSO data highlighting a drop in motor insurance premiums has helped reduce the cost of running a car.
The CSO has found that the average cost of motor insurance has dropped by 10.2pc this year, compared to June 2016.
However speaking on Morning Ireland this morning, Director of Consumer Affairs at the AA, Conor Faughnan, said that the 10.2pc decrease was a slightly false figure to most people due to the previous increases in motor insurance, and in addition many people have not seen any decrease in the cost of their car insurance yet.
“The best we can say is that when we compare August of this year to August of last the cost did not get any worse overall,” Mr Faughnan said.
In light of the AA survey we have four tips on how to reduce the cost of running your car.
1. Add a spouse or partner to your insurance policy – If you have a spouse or partner then adding them to your insurance policy, as long as they have a clean driver record, can net you a discount of up to 20pc, according to the AA.
Separately it’s always worth shopping around. Even if you receive a renewal quote which seems competitive call your current insurer and others to see if anyone can do better for you.
2. Car share – If you live in urban areas then you may be in a position to consider the option of car-sharing with another family, which would reduce the annual cost of running a car.
3. Change the idea of the ‘two car family’ – Most families that have two cars have a ‘his’ and ‘her’ car, however car engines have different miles per gallon, with some cars more efficient than others.
Rather than having ‘his’ and ‘her’ cars, focusing on having a long drive and short drive car could help reduce fuel costs.
4. Depreciation – As there are significant costs around depreciation if you buy a brand new car, if you are looking to buy a new car you may be much better off buying a second hand car that it one or two years old – just make sure you buy the car from someone reputable. The AA calculates the annual cost of motoring each year using a holistic figure that includes the obvious things like fuel, insurance, servicing but also factors in a whole range of other costs.
These include costs like depreciation and interest charges, as well as replacement for components over the car’s life.
The figure assumes a motorist that buys a new car and retains it for eight years at an average annual mileage of 16,000 kms.
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