England Not The Only UK Country Affected By Increased Car Ownership Costs

The latest headlines in English newspapers inform us that over one million people will sell their cars due to unaffordable vehicle ownership expenses. It seems England is not the only UK country experiencing increases in motoring costs. Results from the AA annual survey revealed that the cost to run the family car within Ireland has increased by 5.8 percent during the past year.

The current cost to operate a small family vehicle with an engine size of 1,251 to 1,500cc in Ireland is €11,817. This is a €646 increase from the 2010 cost. Conor Faughnan, director of policy, reported that fuel costs are the most to blame. Petrol was priced at 133.3 cent per liter in June 2010. As of June 2011, it reached 151.7 cent per liter. Consumers have been hit hard in the wallet by this change, which is more than 12 percent.

Though auto insurance rose within the past year, the increase averaged only 1.2 percent. Some indicators reflect that insurance costs declined within the past six months. Service, repair, and replacement costs rose 2.7 percent, which is on pace with inflation. Car finance costs were affected by the increase in ECB base interest rate to 1.5 percent.

Car insurance and fuel are the main things drivers consider when determining vehicle operation costs. Insurance is one of the largest expenses for drivers so motorists should evaluate their coverage to determine where reductions can be made. They should also shop around with various carriers to find the best deal.

Vehicle purchase price fell overall but mainly in low Band A and B categories. The other categories not covered by the government scrappage program experienced slower sales. Over 70 percent of 2011 new car sales have been diesel vehicles and if this continues, diesel will no longer be the less popular type of fuel in Ireland.