Family Car Running Costs Are Beginning to Fall

The cost of running the average family car incost of running a car for a year.
Ireland has dropped by over EUR1000 since lastOne motoring expert said, "The fuel cost
year according to the findings of a new surveyreduction is the big factor and is clearly good
looking into car expense.news but remember that last summer we had a
Factors such as the historically low interest ratesfuel crisis before we had a credit crunch with
helped, which meant that across a wide range ofrecord high prices. Although we have seen prices
car models, the price for new cars did notrise since January, they are nowhere near as high
increase overall and in some cases prices actuallyas they were last year. In June 2008, petrol cost
fell.130.5 cent per litre, it has fallen to 116 cent. That
There have also been small reductions in the costdifference alone saves the average motorist over
of things like servicing a vehicle and parking costs,EUR18 per month."
which have both been in line with the overallThe figures were based on cars that use petrol
inflation figure for the year.and do not include vehicles that use diesel, which
A family in tax category 'Band C' that runs a caraccount for 18 per cent of private cars on
with an engine size of 1251-1500cc, is nowIreland's roads. As diesel prices have enjoyed the
spending just EUR11,156 a year, which works outmost dramatic reduction in price, this number is
as a decrease of EUR1,049 compared to thecertain to rise over time.
figure for 2008.The retail price of diesel fell from a record high of
However, it is believed that the most significant142.9 cent last year, down to 104 cent. This
reason for car running costs to have fallen is ameans diesel users are paying EUR48 less per
reduction in the price of unleaded petrol, makingmonth compared to this time last year, making
things like car insurance more affordable. This cutdiesel powered cars a very appealing option for
in petrol prices has made life a bit easier formany road users.
families and has helped with the overall drop in