The increase in motoring costs between 2008-2009 – when vehicle purchase expenditure has been falling since 2005 – is the key finding of How much we spend on motoring and travel, published today by the IAM as the latest in its series of IAM Motoring Facts 2010/2011.
Even before the recent hike, fuel prices have been on the rise, with an increase of nearly two thirds since 1990. Insurance has also risen by a similar amount over this time. Since 1990 total motoring costs have fallen by around eight per cent. Overall spending on motoring increased by six per cent between 2007 and 2008.
Neil Greig, IAM director of policy and research, said: “With fuel prices rising at the fastest rates for ten years, motorists will be wondering when these increases will stop. Competitive car manufacturers and a more efficient garage trade have delivered lower overall motoring costs but these gains are being all but erased by higher fuel and insurance costs. Travel accounts for one sixth of the average family’s spending, and motoring accounts for more than 80 per cent of this amount.”
Spending on motoring has doubled in real terms since 1970, even though during the same period the cost of vehicle purchase has fallen by a quarter and servicing and repairs by a fifth. Over the same period rail fares have increased by a quarter.
Greig continued: “The increase in rail fares means that driving is still a good option for many. Costs are unlikely to go down so we recommend drivers look seriously at ways to control their motoring bills.”