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Car Insurance and RV's Cost
Owning a car these days is getting more expensive by the month, let alone
each year. Recent rises in car insurance from some of the big players mean
that saving money is paramount, to avoid costs spiraling out of control.
There isn't much you can do about your motor insurance policy once it has
been purchased, but you can look at cutting other motoring costs.
The RAC has recently announced, through their Cost of Motoring Index, that the cost of running the average car has gone up
by almost £540 over the last year. This affects over thirty million drivers in this country.
Fuel prices have been up and down a myriad of times of late, but show a fall overall on last year.
Hard to believe eh?
The RAC index takes into account a number of things in its calculations including:
- Vehicle depreciation, fuel, finance, insurance , maintenance, road, tax and RAC Membership.
The running costs of 17 common makes are included in the survey and show the annual costs as -
- Quarter three of 2005 - £5000
- Quarter three of 20006 - £5539
Although inflation has been kept relatively in check, by
increasing interest rates, the UK's motorists are having to dig deep as
owning a car has gone up again overall by 11 per cent.
The main increase in owning a car has come from falling RV's (residual values),
the depreciation, and increasing insurance premiums. The RV is the expected
selling price of a vehicle at a set time in the future.
The RAC figures showed that residual values dropped from 52% to 45%, in
three year old vehicles over the survey period. Although no future value
is guaranteed if you own the vehicle outright, it can be guaranteed when
written into a purchase contract of some type.
When the vehicle is financed in some way, for example on a personal contract
purchase agreement (PCP), it will have guaranteed future value. Then after
an agreed period of time and set mileage, say three or four years, you can
either pay the outstanding balance still owing or hand the vehicle back
with no further commitment.
The fact that the RV plays such a big part in the overall ownership costs
of any car, means you should consider whether the car you are intending
to buy, particularly a new, is expected to have a good residual value.
Generally speaking, premium brands hold their value better than everyday
run of the mill cars. Premium brands however have a much higher list price
than typical volume cars, so if you're borrowing a larger amount of money
your interest costs could be much higher.
Here is an example of typical predicted values of some average family cars:
Costs predicted over 3 years with total of 30K miles (source Carcost).
So, what vehicle makes the most sense?
Motoring News:
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The Japanese auto maker from Nissan Motor Co.launched the first diesel car for the Japanese market from last six years, the model SUV (sport utility vehicle) Nissan X-Trail 20GT. - Mechatronic Stepper Motor unit with integrated sensOstep Enc
Programming and motion control are done with TMCL (TRINAMIC Motion Control Language). It is very easy to program movements with commands for position and rotation with this protocol... - Russia's new rich spurn Zil for British luxury (Mail and Guardian)
The map will replace this text. If any users do not have Flash Player 8 (or above), they'll see this message. The 100 000th Land Rover Freelander 2 recently rolled off the company's production line at Halewood on Merseyside, north west England.
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