Cost of Motoring Rises by 2.68% to GBP2,338 a Year

    LONDON, ENGLAND, November 18, 2009 /24-7PressRelease/ -- Sainsbury's Finance estimates that the annual cost of running a car has increased yet again, rising by around 2.68% when compared with last year. The bank calculates that the average annual cost of motoring, excluding any interest repayments on loans taken out to purchase cars, is now around GBP2,338, marginally up from an estimated GBP2,277 in 2008. Yet, when benchmarked against 2007, the increase is more startling with the current total coming in at just over 11% higher than in 2007, when the estimated annual cost for running a car was nearly GBP240 less at GBP2,100.

The most significant cost increase this year has been car insurance, which has increased by nearly 13% compared to 2008 and by 23% compared to 2007. This is followed by tax, which has gone up by 8% in the past year alone and by over a fifth (22%) over the past two years.

Fuel prices are slightly lower now than in October 2008, yet even this cost has soared compared with 2007, with the average car owner shelling out around GBP1,266 per year to fuel their car. Servicing costs are also estimated to have fallen marginally over the past year due to the deflationary effects of the recession.

Sainsbury's Finance believes motorists can dramatically reduce their motoring costs by taking a few simple steps and in particular by shopping around for car insurance. As well as competitive premiums, Sainsbury's Car Insurance offers a 10% discount when you buy online.

Ben Tyte, Sainsbury's Car Insurance Manager said: "While certain costs of running a car have fallen during the past year, compared to 2007, the cost of motoring has still increased fairly significantly with road taxes and insurance premiums both on the rise. The cost of driving a car can be kept better in check by shopping around, particularly for car insurance and servicing."

Motorists could also save money by looking at the prices they are prepared to pay for their cars. Sainsbury's Finance's research shows that of those drivers who were planning to buy a brand new car between February and July 2009, up to 117,000 said that they did not plan to haggle at all over the price they paid and a further 304,000 people were only prepared to haggle 'slightly' over the price. This is despite the fact that depending on the car they want to buy, they could obtain a discount of up to 50% on the list price.

Sainsbury's provide a wide range of financial services including credit cards, loans, personal loans, savings account, pet insurance, life insurance, home insurance and car insurance. Visit www.sainsburysbank.co.uk now to find out more.

For further information call 0800 032 0000, visit www.sainsburysfinance.co.uk or pick up a leaflet in store.

For further information, please contact:
Phil Anderson/Max Duddy
Citigate Dewe Rogerson
020 7638 9571
Notes to Editors:

(1) Based on combined analysis of various sources including Office of National Statistics, AA, and www.direct.gov.uk. Comparison was made between the latest figures from these sources and those from a year ago when Sainsbury's Finance calculated the cost of motoring. Some 2007 and 2008 figures have been re-calculated to take into account publication of new data since estimates were calculated.
(2) Average car insurance premium in October of each year based on research conducted by the AA
(3) Based on data from www.direct.gov.uk
(4) Based on driving 10,000 miles a year in a Ford Focus (one of the UK's most popular cars) which does on average 37.7 MPG and typical petrol prices in October of the respective year
(5) Based on analysis of the latest figures from the Office of National Statistics and RPI statistics. According to the Department of Transport, there are some 27.8 million licensed cars in the UK.
(6) Based on data from www.direct.gov.uk
(7) Research conducted by TNS with 2006 people between 30th January and 8th February 2009. The figures have been weighted and are representative of all GB adults (aged 16+). The consumer omnibus research conducted by TNS uses a large sample size that reflects the demographic profile of GB. Given this it is possible to extrapolate figures for GB from the research results within appropriate confidence intervals.
(8) Car broker Broadspeed.com

Sainsbury's Car Insurance is arranged and administered by esure Services Limited. Registered in England No.2135610 at The Observatory, Reigate RH2 0SG. Not available in Northern Ireland or the Channel Islands. Age restrictions apply. Subject to normal acceptance criteria. Like all insurers there may be circumstances where we are unable to provide a quote. Calls may be monitored and recorded.

Sainsbury's Finance:
To view our latest press releases and product information, please visit the Sainsbury's Finance online media centre at www.sainsburysfinance.co.uk/media.

Sainsbury's was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury's Finance provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times. Our products consistently top Best Buy tables and regularly win awards for quality, price and service.

Sainsbury's Finance recent awards include Best Online Credit Card Provider / Best Direct Home Insurance Provider, Your Money 2009.

Sainsbury's Finance is a joint venture between J.Sainsbury plc and Lloyds Banking Group.

For further information and general Sainsbury's Finance enquiries customers can call the freephone number on 0500 40 50 60 or visit www.sainsburysfinance.co.uk

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