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Drivers Should Bypass Debt as Car Costs Increase
With fuel prices increasing all the time, drivers are being urged to budget carefully on the road to becoming debt free.
World oil prices currently stand at more than $130 a barrel - double what they were a year ago - and this is being passed down to consumers at the petrol pump.
Prices are set to be pushed even higher in October, when the government’s 2p increase in fuel duty comes into effect, and this is on top of an increase in car tax for many vehicles.
Vehicle Excise Duty (VED) is set to rise on older vehicles, and those models perceived to be less “green”.
Cars registered between March 2001 and March 2006 which emit over 186g of carbon dioxide for every kilometre travelled will be affected by the increase.
Such vehicles will see their car tax increase from £210 this year to £300 in 2009 - rising to £430 in 2010. This is most likely to hit families that own older people carriers, estates or saloons.
Drivers are being urged to trade in old or gas-guzzling cars for a cleaner or newer model, although it is important not to let a vehicle purchase increase debts.
A survey by Experian recently found that nearly one in five men and one in 10 women are tempted into debt to buy a new car.
Drivers are also being encouraged to spend less on fuel, by shopping around for the best deal on petrol prices - which can vary by up to 10p a litre in some areas - and adopting conservation tactics.
These include driving in the highest gear - as driving at high speeds in low gears can burn up to 45 per cent more fuel than is necessary - and avoiding long journeys.
Debt Management News posted on 02 June 2008
