THE cost of running a new car has increased by a massive ten per cent in the last year, according to new research.
And the running costs of some vehicles have increased even more, say automotive data experts hpi following a new study which examined a range of factors from depreciation to fuel costs and repairs to calculate a total cost of ownership on some popular models.
The figures show a cost per mile and are based on vehicles aged at three years and 30K miles, and include service and maintenance, fuel, depreciation from the cost new and road tax.
The research looked at the cheapest vehicles to own in 2016 against 2017. It found the cost per mile for the Peugeot 108 increased from 24p to 27p. The Toyota Aygo jumped by over 15% from 24p to 28p over the same period.
Strong consumer demand has firmed up the values of used cars over the last 12 months to slow depreciation say hpi's experts but, the company's consumer and retail specialist, Philip Nothard explains: "The motorist is facing rising taxation and fuel costs due to a weak pound."
According to data released by the Department for Business, Energy & Industrial Strategy, fuel prices increased from 101.46p in March 2016 to 120p a litre in March 2017.
Nothard added: "Depreciation is the single biggest factor in the cost of owning a car. It usually outweighs the costs of fuel use, servicing, car tax and even insurance, even when added together. The drop in value varies between makes and models, and while depreciation is often quoted in percentage terms it can be more useful to think in cash values, which helps identify if a car is going to lose them more or less money than another."