Every motorist knows just how expensive keeping a car on the road can be and for many it can significantly eat into their monthly budget.
Insurance, fuel, road tax and maintenance are just a few of the main costs to cover, but are these costs currently increasing or decreasing for motorists?
Insurance
Insurance is a major cost that every motorist needs to cover, but the good news is that this is actually a cost in decline right now as a result of the pandemic. This is due to the fact that people are spending much less time on the roads and accidents are much lower, which helps to bring down the average cost – it is even the lowest average cost for young drivers that it has been in a decade!
Fuel
Fuel is a tricky one because it will depend on where you buy it and the price is always rising and falling. Generally, fuel price has increased significantly over the last 25 years but it is currently relatively low compared to the prices of the last 10 years. The price of fuel is dictated by supply and demand, so prices did fall in 2020 as a result of COVID-19 but has steadily been rising once again since the start of 2021.
Repairs & Parts
Repairs and parts are an inevitable cost that every motorist needs to be prepared for (although you can often prevent issues from occurring with regular vehicle maintenance). It is not entirely clear whether the costs of parts and repairs have changed in recent times, but there is greater availability which should help to drive costs down for motorists. Additionally, many motorists now buy their own parts such as cheap tyres and parts online and then either change these themselves or pay to have it done.
Car Prices
Of course, there is also the cost of a vehicle themselves to cover. Buying a car is always a major purchase and often the second-largest behind buying a home so even a small change in prices can be a lot of money. Currently, the cost of used cars is rising as a result of a surge in demand. Many people have delayed making big purchases as a result of both COVID-19 and Brexit, plus many are now avoiding public transport which has contributed to the rising cost of used cars.
As you can see, the cost of motoring is changing in both directions and this is partly as a result of COVID-19 and the changes that this has brought. Keeping a car on the road is always going to be a major cost when you factor in the cost of buying a car, insurance, maintenance, fuel and road tax, but there are also always ways to make savings too.