Rising Fuel Costs

Just in the past week, fuel prices have shifted from 1.37 to 1.44 per litre in some places.

I have been considering for a while getting a new car, but it's a case of finding something economical, and equivalent to my Nissan Primera in terms of reliability.

This rules out pretty much all Petrol Engined cars and I'd go with a Diesel. I had my eye on the Toyota Avensis D-4D 2.0 and 2.2 litre cars, but they have such staggering problems with Head Gaskets blowing, heads warping, water pumps dying. It's crazy.

There is some degree of warranty, but Im not being left with a £3k repair bill of a lump in 3 years outside of the warranty.

However right now based on fuel economy, with a diesel, I could save £100 on tax and insurance per year, followed by a further £400 to £800 depending on economy.

At only 5mpg difference in fuel economy, every time fuel increases by 5p, I save £12 a year. If fuel went up 20p over 2 years, by year three, Im saving £48 a year.

The savings keep improving. So although changing my car now to a £6k beast would sound expensive, paying £160 a month on a loan, I balance that with having a newer cleaner smarter car, saving upwards of £500 a year. Depending on use, I could even find myself saving around £700 a year, and by year three after a further 20p hike in prices, £750.

I'd half rather pay for a less expensive car now and pay a loan off faster, than pay towards keeping my current car on the road and save less.

But it does dpeend on the state of the economy.

Cheers
Simon

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