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It's now costing €650 a year more to run your car

The cost of running a family car has jumped by almost €600 a year.

The hike in motoring bills is due to rising petrol and diesel prices, according to AA Ireland.

The motoring group now estimates that the average cost of financing a family car with an engine size of 1251-1500cc is €11,817 -- an increase of almost €650 on last year.

AA's director of policy, Conor Faughnan, said the cost of fuel had risen on average by 12pc during the period.

"In June of 2010 petrol cost 133.3 cent per litre, but by June of this year that had risen to 151.7 cent," said Mr Faughnan.

"It is something that motorists are certainly feeling in their pockets," he added.

He said the huge jump in fuel prices meant that the average family car is costing 6pc more to run a year compared to last year's figures.

Other motoring costs had recorded smaller price increases over the past year.

Car insurance rose by just 1.2pc on average, and the cost of servicing, parts and repairs has increased by an average of 2.7pc -- largely in keeping with general inflation levels.

Mr Faughnan pointed out that the European Central Bank's base interest rate had also increased from 1pc to 1.5pc which had a knock-on effect on the cost of car finance.

The price of new cars fell slightly, which the AA attributed to strong competition between manufacturers and increased consumer interest due to the Government's scrappage scheme.

According to the AA, a motorist with a car with average fuel consumption of 30 miles per gallon (9.5 litres per 100km) on annual mileage of 10,000 miles (16,000km) will spend €2,301 on petrol this year compared to €2,000 last year.

There had been a huge switch in favour of diesels among new car buyers in recent years, Mr Faughnan said.

cfeehan@herald.ie


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