The cost of running a car has risen by 2.6 per cent compared to last year, a new report shows.

A study from Sainsbury's Bank reveals that motoring costs are now ten per cent higher than they were in 2005. Annual costs, excluding interest payments on car loans, now stand at around £2,259, up from £2,205 last year and £2,053 in 2005.

"The cost of motoring can be high but it is possible to keep it in check by, for example, shopping around for car insurance and fuel," Sainsbury's spokesman Joanne Mallon commented.

"However, it is not only the costs associated with running a car that motorists need to tackle but also the price they pay for them.

Our research shows that of those questioned between September 2007 and March 2008, some 12 per cent of people planning to buy a car don't intend to haggle over the price they pay and a further 38 per cent only plan to haggle slightly.

"This is despite the fact that you can save well over £1,500 on the price of a brand new car by doing this."

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