Average vehicle ownership costs have gone up by 9.3 percent, which is higher than the rate of inflation, and further rises could be about to happen, too.
Vantage Leasing's report revealed that the cost of a new car has increased by 12.3 percent according to figures published by the Office for National Statistics (ONS) as part of its consumer price index. For example, in November 2016 a 1.6 litre Vauxhall Corsa cost £12,480, but in June that figure was up to £14,025.
With the prospect of increased import costs for parts for locally built cars, and indeed cars built abroad, plus the falling value of the pound, manufacturers have raised list prices and reduced customer discounts to compensate and will more than likely continue to do so.
While new car prices have risen, used car prices have dropped – the average second-hand car cost 4.4 percent less in October 2019 than in July 2016.
It's not just the cost of buying new cars that's gone up. In the same timeframe, the cost of insurance has gone up by 6.2 percent, while maintenance costs have risen as well. The prices of replacement tyres have gone up by 6.4 percent, while the average cost of replacement tyres has increased by 6.4% since July 2016, while the cost of spares and accessories has increased by 8.7 percent. The overall cost of vehicle maintenance and repairs has jumped by 9.2 percent.
Fuel prices meanwhile have fluctuated over the last three years. Back in July 2016, the average price for a litre of premium unleaded petrol was £1.16, while in October 2019, the average was £1.27, representing a 9.2 percent increase. As a result the average price to fill up a typical 55-litre fuel tank has risen by £6.05, from £63.80 to £69.85. Diesel prices have also risen by 11.1 percent.
For drivers covering 12,000 miles annually in a car that returns 45mpg, drivers are now spending an extra £129 per year on premium unleaded, with diesel owners spending an additional £160. Those running their car on super unleaded are now paying £175 more per year for fuel.
"Since the Brexit referendum was held three and a half years ago, there has been a gradual but very tangible increase in the cost of running a car," said James Buttrick, marketing manager of Vantage Leasing. "With so much uncertainty around the details of the UK’s departure from the EU, the automotive industry has found itself one of the worst affected. It’s hard to see that getting any better for the industry or the motoring consumer as we finally head towards Brexit."