Startline Used Car Tracker research has revealed that annual average car costs have jumped by nearly £1,000, representing a 20% increase since the beginning of this year.
The research released in November shows that annual spending by motorists on fuel, insurance, servicing and car finance grew by £80 a month.
While fuel prices are said to have increased at £37 per month, insurance and motor car finance rose by over £20 per month.
According to the research, key concerns affecting the motorists include running costs at 66%, cost of living at 65%, inflation at 35% and job security at 22%.
Motorists feel that their declining personal finances will govern their future decisions on buying used cars.
Startline Motor Finance CEO Paul Burgess said: “For a lot of drivers, an annual £960 hike in motoring costs is money that they can’t easily find. Last month, our research showed that one in four families were thinking of selling their car or perhaps downsizing from two cars to one – and this really underlines why.
“The latest finding puts into perspective just how much rising motoring costs are affecting ordinary people who need their car to simply get to work, take their kids to school and drive to the supermarket.
“It’s evident that personal finances worries are increasing. More and more, people are feeling the pressure of the cost of living crisis and thinking about what their next used car will cost to buy and run.
“However, it’s also worth mentioning that the used car market remains in good shape. We’re seeing no slowing of demand as a company and our survey also shows little change in how likely people say they are to buy a used car.”
As many as 305 consumers and 59 dealers were questioned for this month’s Startline Used Car Tracker, compiled by APD Global Research.
A motor finance specialist, Startline accounts for over 2% of the UK used car motor finance sector by volume.