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Appendix C: cost of motoring analysis

The special analysis of how the costs of motoring have changed over 20 years was carried out for RAC by Go Motoring Ltd, supported by data from Motor Consulting and Management Ltd.

Changes in the cost of motoring have been calculated using the assumptions and information sources detailed below.

Retail Price Index

Data provided by Office for National Statistics.

Cost of running a car

Comprises service and repair costs, insurance, fuel, road tax and breakdown cover.

Service and repair costs provided by Motor Consulting and Management with additional data from Autodata, Euro Car Parts and Dunlop Goodyear; insurance provided by Aviva; fuel prices provided by the Retail Motor Industry Federation with consumption data from Ford, Vauxhall, BMW, Audi and Renault; Road Tax by the DVLA and RAC breakdown cover by the RAC.

Cost of new cars

Figures are based on the cost of depreciation and finance over three years and 12,000 miles per annum, and assume that a 10% deposit is paid.

Depreciation provided by CAP Motor Research and finance rates by the Finance Lease Association.

Cost of fuel

Data provided by the Retail Motor Industry Federation, incorporating the Petrol Retailers Association.

Total cost of motoring

Comprises all costs, including depreciation, finance, service and repair, insurance, fuel, road tax and breakdown cover expressed as an average for seven cars spanning small, lower medium, upper medium, small executive, executive, luxury and people carrier sectors.

Cost of rail travel and bus and coach travel

Data provided by Office for National Statistics

Cost of running a car as a percentage of household disposable income

Service and repair costs, insurance, fuel, Road Tax and breakdown cover expressed as a percentage of household disposable income as provided by the Office for National Statistics.

Time to purchase a new car based on average household disposable income

Based on a lower medium sector hatchback, comparing a 1988 Ford Escort 1.6GL with a 2008 Ford Focus 1.6LX, taking disposable income as a percentage of three years depreciation and finance, and assuming that the car is part exchanged for another one after three years.

Appendix B: about the research