Cost of motoring rises by 13.55%

Sainsbury's Bank estimates that the annual cost of running a car has risen by around 13.55% when compared with last year, but is 16.2% higher than in 2006. The Bank calculates that the average annual cost of motoring, excluding any interest repayments on loans taken out to purchase cars, is now around £2,544, up from an estimated £2,240 last year and £2,189 in 2006.

The main reason for this dramatic increase is the cost of fuel which is now costing the average motorist 19% more than last year. However, there have also been significant increases in the areas of car servicing and tax.

Sainsbury's Bank believes motorists can dramatically reduce their motoring costs by taking a few simple steps, such as shopping around for car insurance. As well as competitive premiums, Sainsbury's Car Insurance offers a 10% discount when you buy online. The Bank has produced a free guide for motorists on how to reduce the cost of driving.

Joanne Mallon, Sainsbury's Car Insurance Manager said: "The cost of fuel had started to drop earlier this summer but rising oil prices now look set to push it higher than ever. Road taxes too have increased, making motoring a very expensive business. Those costs, though, can be kept better in check by shopping around for car insurance and fuel for example."

Motorists could save money by looking at the prices they are prepared to pay for their cars. The Bank's research shows that of those drivers who were planning to buy a brand new car in the six months from September 2008 to March next year, 19% had no intention of haggling on the price, and another 19% only planned to haggle slightly. This is despite the fact that they could save around £1,500 by doing so.

Steven Baillie, Sainsbury's Car Leasing Manager added: "Leasing schemes offer another affordable option for people who want to drive a brand new car but find the upfront cost prohibitive. Schemes, like our own Sainsbury's Drive, enable you to drive a brand new car by paying fixed rental payments over a period of time that suits you. Additionally, further headache can be taken out of driving as the road tax is included and the customer can choose to have their servicing included, thus spreading the cost. At the end of the contract, you can decide to simply hand the car back and walk away or take out a contract for another new car."

For further information, visit sainsburysbank.co.uk