Increased driving costs causing consumers to cut back
May 19, 2008
Over recent months rising living costs, mortgage costs, and tighter credit conditions have resulted in an increasing number of households having to find different ways to try and cut back on their outgoings in order to keep afloat financially. Whilst many people have cut back on non-essential costs such as going out, subscriptions, buying clothes, and shopping, many others have had to try and cut back on other costs, and this includes the cost of keeping their vehicle on the road.
The cost of petrol has soared recently, and is set to get higher over the coming weeks, which has made things very difficult for many drivers. In addition to this many have also been hit with increased insurance costs, and the recent budget has increased costs in a number of other areas for those with newer cars and cars that cause more pollution. All in all the cost of keeping a vehicle on the road has rocketed for many people.
A recent report suggests that many car users have had to either take their cars off the road altogether or dramatically reduce the use of their vehicle because of the cost of keeping the vehicle on the road. Around a quarter of drivers in the UK state that they use their cars less now, and 75% of them said that the reason for this was the rising cost of keeping their vehicle on the road.
One official stated: “Many people are finding their finances are being squeezed to the limit, and when that limit breaks something has to give. For some that means leaving the car in the drive and taking the bus or bicycle to work because driving has simply become to expensive. Petrol costs are high but the single biggest outlay a driver has to account for is their insurance premium. And as it’s illegal to drive without it the only way to minimise the damage is to shop ’til you drop and get the best possible car insurance deal you can find.”
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