Motoring costing consumers 25 per cent of income

Motoring costs eat up 25 per cent of people's incomes, according to the latest survey from RAC Insure.

08:27 06 September 2004

Motoring costs eat up 25 per cent of people's incomes, according to the latest survey from RAC Insure.

Taking into account the cost of fuel, insurance, maintenance, taxes and depreciation, RAC Insure calculates that the typical new car costs almost 102 a week to run.

This works out at a staggering 5,300 a year - equal to a quarter of the average household's income after deductions.

Rising fuel costs and higher interest rates are mainly to blame, with annual fuel bills up 102 for a BMW 7 Series and 53 for a Toyota Yaris.

The cost for a litre of unleaded petrol has risen 5p since March which means the average motorist is now spending an extra 65 a year on fuel.

Interest-rate rises have also had a hand in the escalating car costs, pushing the cost of finance deals up by 11 per cent - 94 in extra interest for a typical car loan.

However, the report shows that weekly running costs can vary by as much as 255 between the cheapest and most expensive vehicles (the Toyota at 67 and the BMW at 322).