New research released today suggests that motorists are failing to recognise the real expense associated with car ownership.
The survey undertaken by You Gov and commissioned by car rental giant Europcar reveals that motorists are making short-term cost savings which could lead to longer term financial pain.
Increasing motoring costs and the fuel price hikes have put car ownership in the spotlight this year as drivers look to control their ever-rising outgoings. According to You Gov’s findings, 1 in 3 drivers (34 per cent) now think that people are trapped into car ownership by their location, work and family commitments. And, around 1 in 4 thinks that the cost of ownership outweighs the benefits. Yet, only 8 per cent had any real idea of the true cost of running a car. 76 per cent underestimated the cost and almost 1 in 5 (18 per cent) simply had no idea. Even assuming respondents to the survey were guessing the figure based purely on the cost of keeping a car on the road (£2,435*), only 10 per cent estimated within the right parameters.
Tim Bailey, Fleet Director for Europcar UK Group says: “The invention of the car brought us freedom and flexibility but over a third of drivers say motorists feel trapped into car ownership.”
While respondents were making short-term measures to reduce their motoring costs with 68 per cent saying they have cut the number of journeys they make and 46 per cent saying they have changed the way they drive to conserve fuel, they failed to consider the bigger picture. For example, many motorists have tried to cut the costs for servicing, maintenance and roadside assistance. But this could have serious implications for their safety and could also affect re-sale values.
So what does Europcar suggest? Rental and long-term car leasing could offer a much more flexible approach to motoring particularly for those trying to run two cars per household. It means that drivers are not trapped into the ownership of an expensive-to-run, depreciating asset and yet can still enjoy the freedom of the open road.
“It’s a trend we think will grow as the cost of running cars – fuel, insurance, etc - eats into already stretched household budgets. In fact, the survey showed that 23 per cent have either used or are considering using car rental as an alternative to car ownership.”
