Cars may cost more to run than their value

Millions of motorists may have to face up to the reality that it may cost more to have a car on the road than the vehicle is actually worth.

New research from the independent comparison website uSwitch, has said that this may happen by 2009 if petrol prices reach the anticipated level of £2.30 a litre.

Add this to the current costs of car insurance, road tax and other costs involved in running a car then the costs will soon mount up.

Currently the average motorist is spending £65 to fill their tank but this could almost double to £128.80.

Thus by 2009, motorists will be spending £3,387.29 a year, according to the research while the average car is only valued at £4,227, meaning a difference of £385.

But to those that have a car valued lower than the common average, they may be paying more to run the car than the car is worth.

Ann Robinson, director of consumer policy at uSwitch.com, comments: "We are heading towards a situation where motorists are going to be priced off the roads.

"Drivers are also going to need to contend with rising [car] insurance premiums and increased road tax as announced in the Budget."