[article] The price of car ownership.

mike65

From indo

CHEAPER insurance is bringing down motoring costs, but a rise in petrol prices has meant that the cost of running a family car - over €10,000 a year - has dropped by just 1pc in the last 12 months, despite a 22pc average drop in the cost of insurance premiums.

The same period saw increases in the cost of road tax, garage and parking fees and Automobile Association membership, according to an AA survey published today. But driving licences, which have cost €25 for the last 10 years, did not increase, while lower interest rates meant car users paid lower interest on capital.

The AA survey also notes that cars have depreciated at a higher rate than in the previous year.

Public affairs manager Conor Faughnan said: "The fall in insurance costs is very good news for the motoring consumer. However, this does follow on from years of rising premiums, so in a sense we are just getting back what we lost in previous years.

"Premiums are down across the board, with the average reduction approximately 22pc. However, almost all of that gain has been wiped out by the huge recent rise in fuel prices."

A year ago, petrol cost an average of 86.4 cents a litre but has now risen to an average €1.04 a litre.

Other motoring costs, such as servicing, repairs and replacements, have risen broadly in line with inflation at 2.5pc, the AA says.

According to its latest statistics, the annual cost of running an average family car works out at €10,383, based on an annual mileage of 10,000 miles. On a cost-per-mile basis, the AA calculates a rate €1.04 per mile, compared to €1.05 per mile in the previous 12 months.

The AA survey estimates the cost of running cars - ranging from inexpensive runabouts with engines below 1,000cc to top-of-the-range deluxe cars with engine capacities of between 3000 and 4000cc.

The annual standing charges and operating costs for eight categories, from €8,807 at the bottom end to €19,467 at the top.

The AA calculated standing charges by taking account of the costs of road tax, insurance, driving licences, depreciation, interest on capital, garage and parking fees and AA subscription. Operating costs cover spending on petrol, oil, tyres, servicing and repairs and replacements.

The AA calculated that during the last 12 months motorists with an average small family car (1251cc to 1500cc) would pay €292 for a car licence, €1,334 for insurance, €3 for a driving licence, €420 interest on capital, €3,536 on parking and garage fees and €105 for AA membership.

The annual depreciation of a car was calculated at €2,101.

Operating costs for the past 12 months for an average family car were calculated at €2,714 and were made up of €1,304 in petrol costs, oil costs at €20.7, tyre costs at €235, servicing costs at €289 and repairs and replacements at €865.

Eugene Moloney

Mike.