The AA's annual survey of the full cost of keeping a car on the road shows small increases below the level of inflation. Conor Faughnan, public affairs manager AA Ireland, advises drivers on some cost-saving measures
We all know that motoring is expensive but not many people realise just how much that shiny metal box in the driveway is actually costing. Tax, fuel and insurance are obvious bills but there are other things to be accounted for.
The AA does a calculation each year to assess the full cost of motoring. The equation is a comprehensive one and it includes less visible items such as depreciation, loss of interest on capital, the price of parking and all running costs.
We assume an average annual mileage of 10,000 (now expressed as 16,000 kilometres) and depreciation is calculated over an eight-year life for the vehicle.
It turns out that the full cost of keeping a small family car on the road for a year is €10,515.68; up by €148 on the figure for 2004. The overall increase in the past 12 months works out at 1.4 per cent, which is not bad with inflation at 2.4 per cent. But, as ever, the devil is in the detail.
The good news is that insurance prices have fallen for the second year running, this time by an average of 13 per cent. With the road safety situation worsening there is less reason to be optimistic going forward. The downward trend in insurance premiums will continue for another year or so but real progress after that depends on improving road safety.
The purchase price of new cars has not increased, and indeed has reduced in some cases. Running costs like servicing and parts have risen broadly in line with inflation. The bigger worry - and one that seems set to get worse quickly - is the cost of petrol and diesel.
Oil prices have had a volatile year and that has had its effect on our domestic market. The average retail price of petrol has swung from highs of just over €1 last June to a low of 94 cent in January; then came a series of sustained price rises month after month which is still continuing.
Forecasters differ on the detail but nobody is optimistic. Petrol prices will rise in the coming weeks and months and may well reach €1.10 per litre, if the pessimists are correct.
This would certainly hit motorists hard. A car doing our average mileage with a fuel economy of 30 miles per gallon will use 1,500 litres a year. An eight cent price increase means an extra €10 per month on the household bills.
As a small country there is nothing we can do about oil prices nor indeed about currency fluctuations, the other main variable which affects fuel prices. But we can fight back in small ways. We can use less petrol, and we can buy it as cheaply as possible.
Using less might seem impossible; the office doesn't get any closer to home when fuel prices go up and public transport doesn't get better. One-eyed car opponents should understand this before advocating congestion charges and extra tolls: car users who have no alternative just have to keep driving. Hitting them turns a traffic jam into a tax collection mechanism without solving the problem.
But you can improve fuel efficiency by keeping your car in good condition, and by driving slowly and smoothly as opposed to revving and braking hard. A simple tip is to turn off the climate control. Air conditioning is a thirsty feature - it can add between five and ten per cent to your fuel bill.
We can also shop around for petrol. Prices will vary considerably from one service station to the next. As consumers we should seek out the cheaper ones and abandon the expensive ones.
World prices may still rise but at least we can make our own market as competitive as possible. This may feel like small sandbags to hold back the rising tide but every little bit helps.
• Further details of the AA motoring costs survey, including charts from previous years for comparison, can be found on the AA's website at aaireland.ie