Quick Reference Guide
How our costs are calculated
We base our standing and running costs on various sources of information. The following are the sort of things that we bear in mind.
Breakdown cover
The figure shown is based on the cost of Roadside annual vehicle based cover.
Claiming mileage
How much your employer will give you for using your own car for company business depends on the employer and is a matter for negotiation as circumstances vary. The Inland Revenue operates an Approved Mileage Allowance Payment (AMAP) system.
Prices in our tables include VAT.
More information
Contact your tax office
websites:
http://www.inlandrevenue.gov.uk/cars/fuel_company_cars.htm
http://www.hmrc.gov.uk/mileage/index.htm
Cost of capital
This sum represents the loss of income from the owner having money tied up in a vehicle, which otherwise could be earning interest in a deposit account. This year we used the AA's online saving rate of 5.99 per cent in conjunction with the average value for the cars chosen for each cost group.
Any further charges for a loan or hire purchase will be on top of this.
Depreciation
Cars lose value at different rates depending on make, age, mileage and condition etc. The tables assume that depreciation costs are averaged over four years from purchase, and include typical adjustments for the different annual mileage in that period. Older cars generally depreciate at a slower rate than when brand new.
We use various depreciation rates for mileages which differ from the average 10 000 miles per annum.
Fuel
- The price of fuel used is the UK average value from our fuel price report.
- The fuel consumption figures used are typical for each of the car groups listed.
Insurance
The value displayed is a UK average cost for a fully comprehensive policy with 60% no-claims discount.
Parking and tolls
Car parking and toll payments are based on a national average for an urban driver. But you may pay more or less depending on how much you use your car.
Road tax
- The value displayed on the basic guides assumes that the car was first registered after March 2001 and is the average in each price group.
- See our Road Tax Calculator for more information on Variable Vehicle Excise Duty (VVED) which links new car road tax to CO2 emissions and applies to cars first registered on or after 1 March 2001
- This year we have used the band G tax rate of £400 for the most expensive cars.
Replacement parts
The replacement parts included cover those likely to be needed under normal driving conditions, such as brake materials, oils, filters, bulbs, wipers, and hoses.
Service and labour costs
The labour costs cover normal servicing and parts replacement at a dealer, taking average UK labour rates.
Tyres
The figure used is based on an estimated tyre life of 27,000 miles. Different values are used depending on the vehicle size or price band.
Prices are based on online tyre dealer prices. They are not main dealer prices - which will inevitably be higher.