BookMyGarage is warning drivers that car running costs are going to increase in 2017. Rising fuel prices, soaring inflation and mounting insurance premiums will all hit car owners. Speaking to The Sun newspaper, BookMyGarage boss Douglas Rotberg predicted tough times ahead for drivers: “Increases in costs will be a significant hit on those who are struggling to make ends meet. We’ve got the technology to save drivers money on their MOTs and servicing and they’ve never needed it more. In addition, we’ve got some handy hints that will save all car owners money.”
Here are some of the biggest bills drivers will face when running their car, and tips on how to limit the costs.
Car running costs: depreciation
This is how much money your car loses in value as soon as you start owning it. It’s a cost of motoring that few drivers think of. Yet over a car’s lifetime it’s the greatest expense drivers will face.
- Keep your car in good condition and ensure that the service history is kept as up to date as possible
- The newer and more expensive the car, the more it will depreciate. Older cheaper cars lose less money
- Do your research and buy a car that loses less money than another.
Car running costs: price of fuel
After months of low oil prices, fuelled by too much supply, petrol producers have now agreed to restrict production. This will increase the price of oil and will be reflected at the pumps. It is likely to mean the price of fuel will increase by 3 pence per litre (PPL) in the run up to Christmas. There’s a further anticipated rise of as much as 9 per cent during 2017. This will make a 50-litre fill up around £6.85 more expensive than it is now.
- Check where the most competitive fuel prices near you are at Petrolprices.com.
- Stick to the speed limit. It will make you a safer driver and reduce fuel bills
- Look further ahead and anticipate what other drivers are doing. This will help to reduce the amount you brake
- Keep your car well serviced. Better maintained cars use less fuel
Car running costs: insurance premiums
The latest report by the AA’s British Insurance Premium Index shows average cost of comprehensive cover has risen by 16.3 per cent in the last year. In real terms, that’s an increase of £82 to a typical policy. And there’s more misery with the government hiking Insurance Premium Tax (IPT) by 2 per cent in June 2017. Michael Lloyd, director of AA Insurance says: “I can’t see an immediate end to the current upward trend (in premium costs).”
- Shop around for the best quote. Insurers want your business, so use price comparison sites to get a better deal. But carefully compare policy benefits
- Drive a smaller, cheaper car: generally, less flashy motors will cost less to insure – and they’ll probably be cheaper to buy in the first place
- Add a partner to your cover: insurers think if your partner is also on your policy, you’ll drive better
Car running costs: repair prices
The Bank of England is forecasting that the rate of inflation will nearly triple in 2017. This will take it from 1 per cent to 2.7 per cent. This has been driven by a fall in the value of the pound following the Brexit vote. Many car companies have their HQs in continental Europe and deal in Euros. If the value of the pound falls compared to the Euro, spares become more expensive, repairs pricier.
- Choose an independent rather than franchised garage. They tend to be cheaper
- Shop around. Some garages will have cheaper fixed rates for jobs which will make up for any increase in parts prices. Find them on BookMyGarage
Mandy is an ex-mechanic, with 22 years’ experience in the motor industry. As an in-house motoring expert, Mandy is the go-to woman for any relevant questions that our customers have; both garages and drivers. From specific problems with your car to general maintenance, Mandy is a reliable source of information and advice. Her passion for motoring is a huge factor to her success and the huge wealth of knowledge that she has. She now uses her remarkable grasp of the industry to write regular content for our readers to help drivers understand their car better, avoid being ripped off by garages and save money on their motoring requirements.