“Motorists will continue to be hit hard in the New Year with the additional rise in VAT to 20%. This is likely to take us into a new era of record petrol prices, which is why it is vital the Government takes a close look at the issue to help end the war on motorists’ pockets.”

Used Cars

Overall, used cars continue to be considerably cheaper to own than an equivalent new vehicle. The ownership cost of a used car is now £4,441 or £85.41 per week. This figures is £1,428 (24%) cheaper than for a new vehicle. Year-on-year, despite increases in fuel, insurance and maintenance costs, there has actually been a small reduction (£18) in used cars costs since 2009. This is explained by the fact that depreciation on used cars fell 14.2% in 2010 as a result of prices in the used car market falling from the 2009 highs.

When looking at the running costs, used cars are actually £553 moreexpensive to run than new cars. This is primarily due to maintenance costs which are considerably higher (£437) because of the added wear and tear on older vehicles. Also, fuel consumption is worse and insurance is more expensive on older vehicles.