The average price of running a car has fallen by around 22%, according to a study by Sainsbury’s Bank.
The average cost of running a car in 2016 is £1,575. In 2013, it was £2,197.
The researchers concluded that the main reason for the dramatic fall is down to tumbling fuel costs, which have fallen overall by almost 40% in the past three years.
Car Insurance Remains An Issue
Fuel is the easily the biggest cost of running a car, but the second biggest is insurance, which has gone up by 5.2% in three years.
According to research carried out by Sainsbury’s Bank in a separate study, well over half of car buyers with insurance are planning to shop around for a better deal in a bid to further reduce running costs.
In 2015, 49% of buyers were subject to a rise in premiums, with around 25% saying they had been dealt an increase of at least £40.
“Competition is intense in the car insurance industry, so it really pays to keep an eye on the premiums you are paying to ensure that you are still getting a competitive deal,” said the researchers. “It is essential that you compare like for like policies however to ensure they meet your cover needs.”
The general advice is that taking some time to do a bit of window shopping will save you money in the longer term.
The research found that MOT prices are unchanged in the last three years, although servicing costs have risen significantly.
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