AA Credit Card Helps Reduce Fuel Duty Pain

3 November 2010

The issue of rising fuel prices is facing millions of UK motorists again following the 1p increase in fuel duty, which took effect from October, according to AA Financial Services. There is also no happy New Year on the horizon with the cost of a litre of unleaded petrol expected to rise by a further 2.5p with the VAT increase*.

Mark Huggins, director of AA Financial Services commented, "The AA's figures show that the cost of fuel has risen by nearly 11p per litre over the past year, adding £23 to the monthly petrol bill of a two-car family, while the average cost of a comprehensive car insurance policy has risen by 39% over the same period. This is putting huge pressure on many household budgets at a time when many families are struggling to stretch their £ further."

AA Credit Card offers a leading reward points scheme

The AA's Credit Card can help keep the cost of motoring in check, Huggins suggests. The card offers a market-leading reward points scheme that can earn a return of up to 4% for AA members, when points earned on motoring or fuel spending** against other AA products. No other standard credit card offers this generous rate of return.

AA Reward Points can be redeemed on a wide range of goods, including AA products, high street shopping vouchers, wine, days out or cash back.

"Using the AA Credit Card for all fuel purchases helps to combat these increases in cost. In addition to the introductory 0% on purchases for 10 months (APR 16.9% typical rate variable)*, the card earns double points on the purchase of fuel, including that bought from supermarket filling stations while AA members earn points at twice the rate of non-members," Huggins points out.

"You could give yourself an early Christmas present by taking out an AA Credit Card and start earning points straight away."

Find out how much your AA Reward Points could be worth

The AA Credit Card can be applied for at theAA.com where there is a useful calculator that enables users to work out their points-earning potential.

The following examples show how families, with or without AA membership, can make savings by switching their everyday spending to the AA Credit Card.

  • Family 1 – AA Member – using card only for fuel purchases, over 1 year, 15,000 miles assuming average 35mpg, total 1,948 litres.
  • Total cost assuming an average price over the year of 119p per litre, total cost £2,318.12
  • Fuel points earned: 4,636

And if in addition they spent £250 per month for normal shopping – ie groceries, luxuries etc: £3,000

  • Non-fuel points earned: 3,000
  • Total points earned: 7,636

Family 2 – non-member – using card (same purchase pattern as above)

  • Fuel points earned: 2,318
  • Non-fuel points earned: 1,500
  • Total points earned: 3,818

Redeemed for shopping voucher
AA Member: worth £76
Non-member: worth £38

Redeemed for contribution towards cost of AA car insurance
AA Member: worth £152
Non-member: worth £76

 

* Based on the current average price of a litre of unleaded fuel, 118.62p (1 November 2010)

**AA card summary

  • 0 % interest on all card purchases made with the AA Credit Card for 10 months from the date the account is opened
  • 0 % on balance transfers for 12 months (transfers to be made within 90 days of account opening, 3% handling fee applies)
  • 0% on money transfers for 12 months (transfers to be made within 90 days of account opening, 4% handling fee applies)
  • Card earns two points for each £1 spent on fuel and other motoring purchases for AA Members; half that rate for non-members
  • Card earns one point for each £1 spent on other non-fuel/non-motoring shopping for AA Members; one point for each £2 spent for non-members
  • Points can be redeemed for cash back or items chosen from an online retail catalogue, including AA products and services
  • Motoring spend includes: purchases from any car garage (e.g. for parts, repairs, servicing, MoT testing); fuel purchases (diesel, petrol or LPG Autogas) from any fuel stations including supermarkets; AA products and services purchased directly from The AA.
  • 16.9% APR typical rate (variable)
  • MBNA Europe Bank Ltd, a wholly owned subsidiary of Bank of America Corporation (NYSE: BAC), provides the AA Credit Card

17 November 2010