Vantage Leasing has produced a new report which has revealed that the cost of buying, owning and running a car has soared since the Brexit referendum in June 2016.
The research of various car ownership costs hints that the political uncertainty and a weakened pound have played their part in causing key motoring costs to rise even higher than the rate of inflation, with average vehicle ownership costs up by 9.3% compared to 7.3% overall (CPIH).
And, as the country prepares to leave the European Union and the Single Market at the end of January 2020, further increases in motoring costs are a very real possibility.
The report shows showroom prices have rocketed since the UK voted to leave Europe, with the average cost of a new car shooting up by 12.3%, according to figures published by the Office for National Statistics (ONS) as part of its consumer price index.
As an example, in November 2016 the on-the-road price of the Vauxhall Corsa 1.4i (75PS) Design 5dr (one of the cheapest versions of one of the UK’s best-selling cars) was £12,480. In June 2019, the same model cost £14,025 – a 12.4% increase.
Automotive industry insiders argue that, faced with increased importing and raw material costs due to the falling value of the pound, manufacturers have raised list prices and reduced customer discounts to compensate.
Other key ownership costs have increased, too. Figures show that the average car insurance premium in Q3 2019 was £783 – a £46 (6.2%) increase over the average cost in Q3 2016.
Cost Q3 2016
Cost Q3 2016
Average car insurance cover
Typical maintenance costs have also risen. The average cost of replacement car tyres has increased by 6.4% since July 2016, while the cost of spares and accessories has jumped by 8.7%. The cost of vehicle maintenance and repairs has jumped 9.2%.
New, used and maintenance
Price index July 2016
Price index Oct 2019
% change (+ unless stated otherwise)
Vehicle maintenance and repairs
Spare parts and accessories