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£15 per day to run the average car

The RAC has issued its latest Cost of Motoring Index, which reveals that the average car now costs more than £5,500 per year to run.

Depreciation remains the largest cost factor in all new cars, increasing by 22% to £432 in the last 12 months, while the cost of finance has grown by 10% to £1,040.

Just over half of the rise in the cost of finance is accounted for by the increased cost of borrowing, reflecting a jump in the Bank of England base rate in August 2006. The balance of the increase arises from a 4% growth in the average target price for the vehicles in the index over the year.

“We want to make motorists aware of the fact that it’s not just the cost price of a car that matters but also the running and maintenance costs,” says Jon Day, media relations manager at the RAC.

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