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AA says is now costs €12,000/yr to run a car..........

  • 08-08-2011 11:46AM
    #1
    Registered Users, Registered Users 2 Posts: 5,338 ✭✭✭


    AA have stated that it now costs €11,817 to run a "band C" car in Ireland :eek::rolleyes:. linky
    The AA calculations are based on running costs, servicing, fuel and insurance for a small family car in the 'Band C' tax category, typical engine size of 1251 - 1500cc.

    To break it down according to AA/guestimates
    €2,300 Fuel
    €500 Tax
    €1000 Insurance
    €1000 Maintenance/NCT etc
    = €4,800

    Subtract that from the claimed €11,800 = €7k in finance.. Which works out to be an average monthly bill of €580/month

    Come on AA, does the AVERAGE "band c" car owner spend €580/month on Finance?????

    Or am I missing something blatantly obvious?


«13

Comments

  • Registered Users, Registered Users 2 Posts: 9,653 ✭✭✭Voodoomelon


    Surely they have depreciation built in too, and maybe forgot to mention it?


  • Registered Users, Registered Users 2 Posts: 727 ✭✭✭BuzzFish


    My approx running costs on my 1.9 Diesel

    3576 - Finance
    3150 - Fuel
    500 - Insurance
    614 - Tax
    1000 - Maintenance

    Approx €8840 - Wow never added it up like that :eek:


  • Registered Users, Registered Users 2, Paid Member Posts: 34,901 ✭✭✭✭listermint


    Thats Crazy, It doesnt cost me that to run my M3 :O


  • Registered Users, Registered Users 2 Posts: 5,338 ✭✭✭mullingar


    Good point,

    Taking €7k/yr as an average for combined finance/depreciation, take average "band C car" eg a 3 year old Focus it would loose €2k/yr in depriciation= ~€160/month.

    That still leaves the AVERAGE finance at €420/month.

    Would this be right?


  • Registered Users, Registered Users 2 Posts: 24,109 ✭✭✭✭ted1


    the cost before tax is paid on PAYE wages..

    580 before tax can be down to 350 or there abouts after tax


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  • Registered Users, Registered Users 2 Posts: 16,644 ✭✭✭✭Zubeneschamali


    Surely they have depreciation built in too, and maybe forgot to mention it?

    Last time I did the sums, our '06 Mini Cooper only cost €4.5 K a year. They're supposedly pricing something 1.25 to 1.5 litres, so they must be running a newer model than our Mini, and doing a lot more mileage.

    €11K is a bit silly, though, even our '08 S-Max only cost €15K, and that's a newish 2 litre bus averaging 40K km a year.


  • Closed Accounts Posts: 16,701 ✭✭✭✭Tigger


    their figures are crazy

    they said a small car so lets say 6.5 l/100km


    so €2300 of fuel at €1.50 is 2300/1.5 is 1533 liters thats 23,580 km

    average user dosent do 450km a week do they?

    even still

    tax on band c is €302

    insurance on such a car can't be over €600

    maintaince / depriciation on a band c car well if its newoish car it will need very little maintaince but will depriciate and if its older it will need more but no depriciate so lets be fair to them and say €18,000 depriciated over 7 years €2,520 plus maintaince of a set of tyres a full service and a fault so €1,400

    i get 1400+2520+600+302+2300(which is way over)=€7,000

    can we start a a group question things like this can one of the mods say he represents a large group on boards that are interested in motoring and we would like to see the figures


  • Closed Accounts Posts: 16,701 ✭✭✭✭Tigger


    ted1 wrote: »
    the cost before tax is paid on PAYE wages..

    580 before tax can be down to 350 or there abouts after tax

    say what ?


  • Closed Accounts Posts: 16,701 ✭✭✭✭Tigger


    mullingar wrote: »
    Good point,

    Taking €7k/yr as an average for combined finance/depreciation, take average "band C car" eg a 3 year old Focus it would loose €2k/yr in depriciation= ~€160/month.

    That still leaves the AVERAGE finance at €420/month.

    Would this be right?
    cost of finance not finace as the capital repayment is already factored in as depriciation

    and no itrs crazy


  • Registered Users, Registered Users 2 Posts: 73,328 ✭✭✭✭colm_mcm


    Some serious b0llocks being peddled by the AA yet again.

    €7k a year in finance/depreciation?

    5 year finance say

    €7k 5 years is €35k. That's assuming the car is worth nothing after 5 years.

    Even if you assumed the car was worth the same as the interest paid after 5 years then you're still looking at a €35k new car.



    Maybe I'm deprived or something but I don't regard 35k as being an average car. I would have thought an octavia/focus etc.would be closer to the mark - I.e half that price and not as prone to depreciation anyway.

    And that's before you get to the fact that most people don't buy new cars.


    Is this a plea on behalf of 11 reg 320d man? What planet is conor faughnan or whoever came up with this living on?


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  • Registered Users, Registered Users 2 Posts: 5,232 ✭✭✭stargazer 68


    Well I have just worked mine out on my little Nissan Micra at 2,500! Must be doing something wrong (or right) :D


  • Registered Users, Registered Users 2 Posts: 9,653 ✭✭✭Voodoomelon


    I'd hazzard a guess that most 09/10/11 reg cars on the road are heavily financed. €450 a month would be reasonable for a €25k car with interest built in.

    I make that about €10,500 tops. (Also, €1000 a year on maintenance in this country, please...).

    They're not too far off the mark anyways. Even people who are driving around 06/07 cars are still paying through the hole for finance leased 5 years ago.


  • Registered Users, Registered Users 2 Posts: 24,109 ✭✭✭✭ted1


    Tigger wrote: »
    say what ?

    i'm saying that the cost they are basing it on is the total cost to the average PAYE worker.

    so the costs include the PAYE Tax paid by the owner.

    for every 1 litre of fuel purchases at €1.50 the average person has to earn about €2 to pay for it. the extra 50 cents is gone in taxes and PRSI/USC etc.

    the same with finance etc, so if you paying €300 a month its actually costing your about €440


  • Registered Users, Registered Users 2 Posts: 3,002 ✭✭✭bijapos


    More hyperbolic trash from Conor Faughan. I've no idea where he got his figures from. He was on RTE radio this morning and said the figures were based on tha average 1.2-1.5l petrol car. On the site they have this...........:
    http://blog.aaireland.ie/index.php/2011/08/08/cost-of-motoring/motoring-costs-up-5-8-in-2011
    The AA calculations show that a car that achieves 30 miles per gallon (9.5 litres per 100kms) and does 16000 kilometres per year will use 1500 litres of fuel. Last year that cost worked out at €2,000. In 2011 the cost is €2,301.
    .......now what 1.5l car uses that much petrol. My 01 Scenic uses 8.5l when driven hard with a lot of baggage, but driven normally its average over the year is about 7.5l.

    so then there is tax at €333 for a 1.4, NCT is spread over 2 years, the last four years I havent spent money on anything except bulbs, wipers, oil changes and tyres.

    So the rest id depreciation and finance? the average car is not spanking brand new, its 5-6 years old, so its depreciation is hardly even €1500 p.a. The depreciation on mine is probably €0 at the moment but its lost €11-12k over 8 years so lets say €1500 p.a.

    Some people use finance, a lot don't so try averaging that out Mr Faughan and you'll get nowhere near €11,800, or would you care to put up a proper breakdown of the figures?

    On top of that he permanently uses petrol cars, surely he should consider people use diesels as well and give an average between the two figures.

    He was always a bit prone to a mix of hyperbole, exaggeration and plain bull****, something he should consider as a head of a private organisation that seems to get above average air time. BTW stop claiming to represent all motorists Mr Faughan because you don't.


  • Registered Users, Registered Users 2 Posts: 73,328 ✭✭✭✭colm_mcm


    Take my dinosaur Avensis over 16000km

    Tax. 630
    Fuel: 1600
    Insurance €450
    Maintainance €1000
    Depreciation €500
    Finance €0

    That's €4000.

    Now. If the govt banned new cars and made everyone drive bangers like I do.(remember the typical motorist is driving a €35k car now apparently) there's probably 2 million motorists out there?

    That's a saving of 16 billion per year or something.

    Anyone got a number for the indo? Got a great story for them based on shoddy mathematics


  • Registered Users, Registered Users 2 Posts: 3,002 ✭✭✭bijapos


    I'd hazzard a guess that most 09/10/11 reg cars on the road are heavily financed. €450 a month would be reasonable for a €25k car with interest built in.

    Most cars sold in 09/10 would not be financed, or financed for very little. Remember the banks were giving out very little credit at that time.

    On top of this you would almost never use a €25k loan to buy a €25k car, there would usually be a trade in involved. Yes there are exceptions, but it was a tiny minority of people in those years who bought a car on 100% finance for €25k.

    Faughan also said its based on the average motorist. The average motorist buys a second hand car, not new so it costs even less.

    The figures should be based on an 06 Focus/Golf 1.6 doing 19,000 km per year. The AA needs to explain how they got to those figures, because most of us believe its total boll0x what they are saying.


  • Registered Users, Registered Users 2 Posts: 9,653 ✭✭✭Voodoomelon


    Personally i think a lot more people have bought on 100% finance than you think, I know bucket loads of people who have. Maybe less so in the last few years, but definitely before. The banks were throwing money at people, why wouldn't you get 100%?

    But I agree, on average it should be far, far less.


  • Closed Accounts Posts: 718 ✭✭✭dynamick


    25k c-segment car
    depreciates to 5K after 5yrs
    interest rate / opportunity cost of capital = 10%

    depreciation: 4k/year
    interest /occ: 2.5K/year
    total 6.5k

    I think we're in the right cost region.


  • Registered Users, Registered Users 2 Posts: 657 ✭✭✭tomred1


    Were is the €1000 a year for maintainence coming from?
    A service is approx. €200. What else am i missing?


  • Registered Users, Registered Users 2 Posts: 6,536 ✭✭✭alias no.9


    If the AA had any credibility in the first place, it would be in tatters right now. €7k in depreciation / finance PA, lol, fools and their money are easilly parted.

    A 1.2 to 1.5 engined car that's in band c is going to be a petrol, it'd be a disapointing diesel to not make band b at the very least. It'll do in or about 40mpg on paper, so spending €2300 on petrol would mean they'd cover ~13k miles in the year max, so nothing outrageous there.

    You'd need to spend €20k on a car, entirely financed at 10%pa, trading in after 12 months at €15k and starting again to incur those kinds of costs on that kind of car. Anybody chosing to do that is welcome to do whatever they want, but shouldn't expect sympathy from the general public.


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  • Registered Users, Registered Users 2 Posts: 354 ✭✭Pharaoh1


    colm_mcm wrote: »
    Take my dinosaur Avensis over 16000km

    Tax. 630
    Fuel: 1600
    Insurance €450
    Maintainance €1000
    Depreciation €500
    Finance €0

    That's €4000.

    Now. If the govt banned new cars and made everyone drive bangers like I do.(remember the typical motorist is driving a €35k car now apparently) there's probably 2 million motorists out there?

    That's a saving of 16 billion per year or something.

    Anyone got a number for the indo? Got a great story for them based on shoddy mathematics

    Like yourself I choose the cheaper option - diesel Avensis with 248,000 miles
    I reckon
    Tax 630
    Insurance 415
    Fuel 1200
    Maintenance 600 (fair bit of DIY)
    Dep 500 (this is generous)
    Finance 0
    Total 3345

    Even that amount when you add it up seems a lot to me. I suppose we all have choices - I have no intention of ever borrowing money to buy a car - I reckon I'll get at least 300k miles on the current one.


  • Registered Users, Registered Users 2 Posts: 3,567 ✭✭✭rebel.ranter


    Just remember guys that the AA are talking about the "average" motorist, not the average "boarsdie that regularly frequents the boards motors forum" who have an active interest in motoring.
    if you think about it there are lots of things that someone who is an enthusiast & capable can drive the same car as his clueless (in motoring terms) next door neighbour for significantly less money. Some people woudl struggle to change a bulb never mind service their own car or complete other maintenance.


  • Registered Users, Registered Users 2 Posts: 23,999 ✭✭✭✭mickdw


    The figures wouldnt be too far out if talking about running a new family sized car. They should have just said that instead of saying a small car etc.
    IMO there are thousands of people in this country spending 12k per year on their run of the mill family car. Something like a passat costs about 14k to chage every 3 years. Thats over 5k per year when you add some interest to any loan repayments. Alot of people would be spending 80 per week on petrol/diesel, thats 4000 per year. Add tax and insurance at 1000 and maybe 1000 maintenance for tyres and servicing. Thats 11k right there.
    I always like to point this out to people who complain about 500 per month BIK on nice company cars.


  • Posts: 23,497 ✭✭✭✭ [Deleted User]


    colm_mcm wrote: »
    Some serious b0llocks being peddled by the AA yet again.

    Post of the year in fairness :)


  • Registered Users, Registered Users 2 Posts: 1,566 ✭✭✭Wile E. Coyote


    I spend about €6k a year on petrol alone. I'd rather not add in depreciation/tax/insurance/maintenence etc based on the AA's figures or I might just top myself here at my desk.


  • Registered Users, Registered Users 2 Posts: 16,925 ✭✭✭✭challengemaster


    Tigger wrote: »
    their figures are crazy

    they said a small car so lets say 6.5 l/100km



    Seriously though - assuming a 1.2-1.5L car gets 36+ mpg is silly - Unless you're assuming they're brand spanking new, and even then... I get 24-28 from a 1.4 if lucky.

    insurance on such a car can't be over €600
    I wish there was such a thing as blanket insurance, where age, sex, NCB and everything else was irrelavent. This isn't the case though - Is it? Another very silly assumption tbh


  • Registered Users, Registered Users 2 Posts: 16,925 ✭✭✭✭challengemaster


    LIGHTNING wrote: »
    My 1.2 was almost always over 40mpg usually in the high 40`s. My mates 1.5 Almera puts around in the 6-7l/100km. Even my 1.6 alfa is around that figure, you driving around everywhere in 1st by any chance :)

    Nope - 1.4 almera, being @3k revs for 100km/hr in 5th might have something to do with it...

    (it's either @3k for 100km/hr or 120km/hr, I'd have to double check...)


  • Registered Users, Registered Users 2 Posts: 11,139 ✭✭✭✭Mr. Manager


    Jaysus this is depressing but my car costs ~€7,250 a year :(


  • Registered Users, Registered Users 2 Posts: 16,925 ✭✭✭✭challengemaster


    LIGHTNING wrote: »
    Driving the same car on the N7 at 100km/h we managed to get it down to 5.7l/100km.

    How'd you measure that one?


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  • Registered Users, Registered Users 2 Posts: 5,845 ✭✭✭RobAMerc


    why are people bitching about this ? the AA are trying to make a point to the government that the levies on fuel etc are too much and that people need cars so are not paying for things such as health insurance instead because of the high price of running a car.

    I don't care if the AA claim it costs 50k per annum - let them embellish the figures all they want as long as they get some sort of point across to the powers that be - "we are being ripped off and people have no choice but to pay it !"


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