19 Aug 2015
Posted by Orla O'Callaghan 
The average cost of running a family car for a year is €10,593.60 according to the AA’s annual survey of motoring costs. The total is down a very tiny €17.60 on the same figure for last year according to the AA’s calculations.
The major rise in the cost of motor insurance has cost motorists dearly. Fuel prices are down compared to last year but those gains are lost to the 20 per cent rise in premiums for the typical motorist.
“This is the biggest 1-year rise in Insurance prices in well over a decade.” says Conor Faughnan, Director of Consumer Affairs at The AA. “It marks a big change in the market with insurers nervous about rising claims and about improving their reserves. All prices are rising but if you have had no claims or points in the year and have done nothing wrong it feels unfair. Unfortunately the trend is set to continue for the rest of the year and into 2016 in the AA’s view.”
The good news is that fuel prices are well down on last year. The average price of petrol at 145.3 cent per litre in July is just over 7% less than it was 12 months ago. For a typical motorist in a Band B car that works out at a saving of €144.74 annually but they will still pay €1,761 for their year’s fuel (of which 60% is tax).
Each year the AA calculates average prices for each of the respective tax bands and illustrates the cost of running an average family car. The cost of running a ‘Band B’ category1 car decreased by 0.165% in 2015 when compared to the 2014 figure of €10,611.202.
Other motoring costs did not change significantly with only slight adjustments to be made3. This is reflected in the AA’s calculation of the cost of oil, tyres, servicing, repairs, replacements and garage parking.
The AA calculates the annual cost of motoring each year using a holistic figure that includes the obvious things like fuel, insurance, servicing but also factors in a whole range of other costs. These include costs like depreciation and interest charges, replacement for components such as tyres etc over the car’s life. The figure assumes a motorist that buys a new car and retains it for 8 years at an average annual mileage of 16,000 kms. All repairs, replacements and servicing are carried out as per manufacturer’s recommendations.
Notes:
1Defined since July 2008 as producing emissions of between 120-140g/km per kilometre driven. Examples include: Hyundai i10 1.1 Deluxe, Fiat Punto Evo 1.2 8V S&S DYNAMIC 5 dr Ha, Opel Meriva 1.4I 100HP S 5 dr Mm, Opel Zafira 1.6 16V VVT LIFE NON A/C 5 dr Mm, Alfa Romeo Giulietta 1750 TBI 235 CLOVERLEAF 5 dr Ha, Lexus IS 2.5 V6 250 S-DESIGN AUTOMATIC 4 dr Sa.
2Average Fuel consumption for Band B is assumed at 37.5mpg, equating to 7.53 litres per 100kms. A slight correction is made to the fuel consumption figure this year and that has been applied retrospectively to the 2014 figure to allow for accurate comparison, hence last year’s published figure of €10,571.20 is adjusted to €10,611.20.
3 Based on percentage decrease according to CPI (http://www.cso.ie/en/releasesandpublications/er/cpi/consumerpriceindexjune2015/#.VcM3kPNVhHw)
** a car that does 16,009 kms or (10,000 miles) per year at a fuel economy rate of 37.5 mpg or 7.53 litres per 100 kms will use 1204 litres of fuel per annum or 100.33 litres per month.
** Shopping around to find cheaper deals on your car insurance can really pay off. Multi-product discounts can further lessen the price as well. You can also find yourself enjoying additional benefits too. AA Members for example can get fully comprehensive car insurance to drive other cars, even when they’re borrowed. See here for more.
Cost of Motoring 2015
| CO2 Emission Bands | Band A | Band B | Band C | Band D | Band E | Band F | |
|---|---|---|---|---|---|---|---|
| a) Motor Tax | 120.00 | 270.00 | 390.00 | 570.00 | 750.00 | 1,200.00 | |
| b) Insurance | 906.61 | 1,098.79 | 1,223.86 | 1,322.15 | 1,530.13 | 1,766.23 | |
| c) Driving Licence | 5.50 | 5.50 | 5.50 | 5.50 | 5.50 | 5.50 | |
| d) Depreciation | 1,446.00 | 1,684.00 | 2,424.00 | 3,063.00 | 5,419.00 | 8,057.00 | |
| e) Interest on Capital | 110.89 | 137.86 | 188.81 | 230.77 | 280.72 | 421.58 | |
| f) Garage/Parking/Misc. expenses | 4,043.00 | 4,043.00 | 4,043.00 | 4,043.00 | 4,043.00 | 4,043.00 | |
| g) NCT | 20.63 | 20.63 | 20.63 | 20.63 | 20.63 | 20.63 | |
| Euro € | 6,652.18 | 7,260.10 | 8,295.37 | 9,254.98 | 12,048.56 | 15,513.88 |
Cost per Kilometre (in cent)
| Engine Capacity | Band A | Band B | Band C | Band D | Band E | Band F |
|---|---|---|---|---|---|---|
| 8,000 | 83.15 | 90.75 | 103.69 | 115.69 | 150.61 | 193.92 |
| 16,000 | 41.58 | 45.38 | 51.85 | 57.84 | 75.30 | 96.96 |
| 24,000 | 27.72 | 30.25 | 34.56 | 38.56 | 50.20 | 64.64 |
| 32,000 | 20.79 | 22.69 | 25.92 | 28.92 | 37.65 | 48.48 |
Operating Cost per Kilometre (in cent)
| Engine Capacity | Band A | Band B | Band C | Band D | Band E | Band F | ||
|---|---|---|---|---|---|---|---|---|
| i) Petrol* | 0.0940 | 0.1094 | 0.1156 | 0.1349 | 0.1498 | 0.1619 | ||
| j) Oil | 0.0010 | 0.0012 | 0.0016 | 0.0018 | 0.0019 | 0.0020 | ||
| k) Tyres | 0.0005 | 0.0166 | 0.0177 | 0.0244 | 0.0265 | 0.0264 | ||
| l) Servicing | 0.0151 | 0.0199 | 0.0217 | 0.0253 | 0.0263 | 0.0264 | ||
| m) Repairs & Replacements | 0.0583 | 0.0612 | 0.0644 | 0.0733 | 0.0842 | 0.0906 | ||
| Total in Cent | 16.89 | 20.83 | 22.10 | 25.97 | 28.87 | 30.73 | ||
| *145.3c per litre (unleaded) for each cent more, or less, add or subtract | ||||||||
Total Cost Per Km – Based on 16,000Km
| Engine Capacity | Band A | Band B | Band C | Band D | Band E | Band F |
|---|---|---|---|---|---|---|
| Standing Charges | 41.58 | 45.38 | 51.85 | 57.84 | 75.30 | 96.96 |
| Operating Costs | 16.89 | 20.83 | 22.10 | 25.97 | 28.87 | 30.73 |
| Cents per kilometre | 58.47 | 66.21 | 73.95 | 83.81 | 104.17 | 127.69 |
Notes
All amounts shown in this schedule are in Euros.
It should be noted that the figures quoted are average only and where necessary members should substitute actual amounts.
For the purpose of this schedule the vehicles have been valued at:
€11,995, €14,995, €19,995, €26,360, €33,995, €43,240 and €44,995 respectively.
- Motor Tax: €120, €270, €390, €570, €750, €1,200
- Insurance (Class 1 ) Average rates for Third Party, fire, Theft policies.
No allowance is made for no claims discount. - Driving Licence: €55 for 10 year licence
- Depreciation : Based on kilometres of 16,000 Kilometres per annum, and assuming an economical life of 128,000 Kilometres or eight years
- Interest on Capital; Car value if invested at -.1% per annum.
- Garage/Parking/Misc. Expenses: € 77.75 per week
- NCT: €55 after 4 years and thereafter every 2 years
- Petrol: 145.3c per litre (Unleaded)
- Engine Oil: Allowance is made for variable consumption throughout the car’s life and the cost of replacement after oil changes
- Tyres: Estimated tyre life 48,000 kilometres
- Servicing: general servicing as recommended by the manufacturers.
- Repairs and Replacements: estimated on the basis of total cost of repairs, replacements and renovations over eight years or 128,000 kilometres.
- AA fuel prices are based on Petrol, not diesel. Although diesel is currently much more popular for new car sales, approximately 63% of private cars still use petrol.
The contents of this publication, produced by the AA as part of it’s service to members, are believed correct at the time of printing, but current position may be checked through the AA.
