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Motorists Facing Perfect Storm

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Kid Carnage making his presence felt already. Sterling price for Brent crude closing in on £75bbl again. Record high is £78.99 in March '12.

Go, Kid, go! :lol:

http://www.telegraph...et-to-rise.html

By Steve Hawkes, Consumer Affairs Editor 6:00AM BST 11 Jul 2013

The AA has warned that Bank of England Governor Mark Carney's low interest rate promise had dealt a blow to drivers, as the falling pound makes petrol, priced in US dollars, more expensive. The motoring organisation added that fears over the fallout of riots in Cairo were adding to the pressure.

Sterling fell to $1.4814 against the US dollar on Tuesday, the lowest since June 2010 and down from $1.55 three weeks ago.

Wholesale petrol prices rose above $1,000 a tonne for the first time since April on Monday night, up $50 a tonne on June, and the AA said it was only a matter of time before this rise was passed on.

The AA claimed Mr Carney's announcement alone could add a penny to pump prices. Luke Bosdet, AA public affairs spokesman, said: "The speed of the rise is scary. It's a perfect summer storm. The Bank of England clearly felt the need to give more guidance to the market on interest rates but it hasn't helped motorists."

Petrol prices averaged 133.87p per litre (ppl) at the start of the month but have since climbed to 134.74ppl.

Brian Madderson, chairman of the Petrol Retailers Association, said: "Brent Crude has moved up by $3 a barrel due to the new Middle East uncertainty following events in Egypt and has moved costs by 1ppl but the real culprit is sterling, which accounts for 3ppl of the overall 4ppl increase." The AA said motorists could face increases of at least another 2ppl, but urged forecourts to do all they could to relieve the burden on hard-up consumers.

Families are suffering the biggest squeeze on their incomes for a generation as inflation stays above the Bank of England's 2pc target.

The new Governor sparked a sell-off in sterling last week by hinting that interest rates could stay at record lows until at least 2015.

Analysts said the Bank's shock statement that rate rises were "not warranted" were the prime reason sterling had fallen.

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A few less tossers on the road in motors they can`t afford. All good.

I actually do see this benefit too. if it's going to happen at least this will be a positive side effect.

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Get on the fuel ladder quickly, before prices become unaffordable!

Savvy petrol owners will be laughing all the way to the bank as prices of their fuel SOARS! :lol:

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A few less tossers on the road in motors they can`t afford. All good.

?

Well, they could afford it until the price went shooting up. I'm not sure I understand your logic - at a certain price, you wouldn't be able to afford it either, so do you become a tosser at the point?

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Oil and food prices look set to collapse.

In any event oil prices have little impact on CPI - look at what happened when they double to July '08.

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On charts a re-test of the $130 odd oil. In combination with collapse in sterling similar sort fo hit as in 2007/2008.

Central banksters cannot keep their mouths or their wallets shut.

Maybe people will wake up one day and wonder why they cannot afford what they used and who is really responsible and who the bailouts. money printing and government largesses really benefitted. It won't be the majority of the population.

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I'm not sure I understand your logic - at a certain price, you wouldn't be able to afford it either

Seems like you are assuming that everybody always drives to get around. If you are usually a cyclist or pedestrian, you gain from motorists being priced off the road.

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Seems like you are assuming that everybody always drives to get around. If you are usually a cyclist or pedestrian, you gain from motorists being priced off the road.

Safer probably though cyclists will rely on roads being well maintained. I'm amazed my rims survive the hammer they get on Kirklees roads.

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Safer probably though cyclists will rely on roads being well maintained. I'm amazed my rims survive the hammer they get on Kirklees roads.

True, though since road damage is supposedly proportional to the fourth power of axle weight, fewer cars would also mean a slower rate of destruction of road surfaces. Anyway, I'd happily weave around the potholes if we could go back a bit on this graph:

car-ownership-1950-to-2009.jpg

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Interesting.

Will increase the cost of food/other goods.

Will decrease the amount of fuel VAT revenue to the government.

Government will not be able to add on the extra fuel duty escalator as it will be too unpopular, so less revenue there as well.

I have just halved my fuel costs by going to a more efficient car, so as far as I'm concerned bring it on. IMO fuel is clearly still too cheap judging by the number of massive 4x4s I see on the roads.

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Interesting.

Will increase the cost of food/other goods.

Will decrease the amount of fuel VAT revenue to the government.

Government will not be able to add on the extra fuel duty escalator as it will be too unpopular, so less revenue there as well.

I have just halved my fuel costs by going to a more efficient car, so as far as I'm concerned bring it on. IMO fuel is clearly still too cheap judging by the number of massive 4x4s I see on the roads.

Nothing to do about the number of 4x4s on the road....there will always be 4x4s, SUVs gas guzzlers on the road....high petrol costs will never affect the wealthy or those with company cars and an expenses account.....soon the way things are going they will be the only ones on the road, we will all be hitching a lift from them. ;)

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Nothing to do about the number of 4x4s on the road....there will always be 4x4s, SUVs gas guzzlers on the road....high petrol costs will never affect the wealthy or those with company cars and an expenses account.....soon the way things are going they will be the only ones on the road, we will all be hitching a lift from them. ;)

That's not the point.

With higher petrol charges there will be less 4x4s. People who actually need them will run them red.

There are an awful lot of people running high consumption cars on the road. I was one of them, now I'm not. You make your choices, either cough up or give up.

In general companies do not give out 4x4s as cars. High mileage cars for salespeople tend to be quite fuel efficient anyway, normally turbo diesel sedans like A4 or 3/5 series. I've never met anyone with a 4x4 as a company car, possibly if you were self enmployed you might manage it.

Edit : Actually I have. Someone I knew had a 4x4 because he used it like a van for exhibitions and stuff and that was a company car in a larger business. Probably not the best, as really if you are transporting big stuff you want isolation between the compartments.

Edited by Gigantic Purple Slug

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Less cars on the road? I wish, however from the observations I have made commuting daily on rural national speed limit A and B roads there appears to be an ever increasing number of people who are now just driving slower (as in between 40/50 mph) which irritates the shizzle out of me when said roads have minimal to zero overtaking opportunities.

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That's not the point.

With higher petrol charges there will be less 4x4s. People who actually need them will run them red.

There are an awful lot of people running high consumption cars on the road. I was one of them, now I'm not. You make your choices, either cough up or give up.

In general companies do not give out 4x4s as cars. High mileage cars for salespeople tend to be quite fuel efficient anyway, normally turbo diesel sedans like A4 or 3/5 series. I've never met anyone with a 4x4 as a company car, possibly if you were self enmployed you might manage it.

Edit : Actually I have. Someone I knew had a 4x4 because he used it like a van for exhibitions and stuff and that was a company car in a larger business. Probably not the best, as really if you are transporting big stuff you want isolation between the compartments.

Might also explain the rash of recent new car registrations - looking down the top ten list nearly all of them are the the smallest or next up in the respective manufacturers' lineup. Might have been the case generally in the past but difficult to see if even moreso.

As mentioned will not affect the top end nearly so much so still be seeing the 4x4's and trades generally do not have much choice - no tools and materials on site and you aint going to get much done or earn much.

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That's not the point.

With higher petrol charges there will be less 4x4s. People who actually need them will run them red.

There are an awful lot of people running high consumption cars on the road. I was one of them, now I'm not. You make your choices, either cough up or give up.

In general companies do not give out 4x4s as cars. High mileage cars for salespeople tend to be quite fuel efficient anyway, normally turbo diesel sedans like A4 or 3/5 series. I've never met anyone with a 4x4 as a company car, possibly if you were self enmployed you might manage it.

Edit : Actually I have. Someone I knew had a 4x4 because he used it like a van for exhibitions and stuff and that was a company car in a larger business. Probably not the best, as really if you are transporting big stuff you want isolation between the compartments.

The point that I was trying to make was that those who had enough and more than enough will always drive the car of their desire, partly because it is their choice, partly because of the practicability and usefulness of it and partly to show others they can afford to in different degrees......company cars can be any car and if the costs are being met by an employer why worry when you fill up, someone else is paying, so they will do what they have always done cost to them won't come into it. ;)

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Less cars on the road unlikely, probably half these people on benefits and low income have other sources of income.

Carnage couldn't care less about fuel, he living large in the city of condom index linked without need for a car, completely oblivious to the pain people are experiencing.

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Less cars on the road unlikely, probably half these people on benefits and low income have other sources of income.

Carnage couldn't care less about fuel, he living large in the city of condom index linked without need for a car, completely oblivious to the pain people are experiencing.

And added to that there are very good reasons why fuel is a great means of raising taxation. It is hugely difficult to avoid and very easy to collect taxes on fuel. An absolute boondoggle for metropolitan types as you say.

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It never ceases to amaze me how much attention fuel prices receive. We have a huge amount of control. In the face of prices literally only changing by a few percent we can choose to drive at 55mph or 75mph saving dramatically more than price change. Most of us can reduce our mileage a bit by cutting out a trip every now and then, working from home occasionally, car sharing once in a while etc. In the longer term we can choose to drive a car that does 30, 50 or even knocking on 70mpg, again a difference dramatically greater than the price change.

In short; I see small price changes in the grand scheme of things, I see a lot of control over our fuel use and yet a major overreaction by a lot of people.

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Less cars on the road? I wish, however from the observations I have made commuting daily on rural national speed limit A and B roads there appears to be an ever increasing number of people who are now just driving slower (as in between 40/50 mph) which irritates the shizzle out of me when said roads have minimal to zero overtaking opportunities.

I hear what you're saying... trouble is i've overtook on a few borderline dodgy moments, I need to just listen to a few extra songs on the radio and just dordle behind them, as much as it pains me.. plus quite a few old boys/dears who just cannot go around corners or through gaps or judge braking etc and just take . . . . . . . . . . . . forever. I know i'll be old one day (hopefully) but I just don't think i'll be that slow/dithering, perhaps I will..

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Safer probably though cyclists will rely on roads being well maintained. I'm amazed my rims survive the hammer they get on Kirklees roads.

nah, crappy roads will effect cars more than bikes, as long as you have decent wheels and know how to bunny hop craters or the mountain bike could make a return for me if the shtf and money runs out for road repairs.

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The point that I was trying to make was that those who had enough and more than enough will always drive the car of their desire, partly because it is their choice, partly because of the practicability and usefulness of it and partly to show others they can afford to in different degrees......company cars can be any car and if the costs are being met by an employer why worry when you fill up, someone else is paying, so they will do what they have always done cost to them won't come into it. ;)

Well yes. Rich people can afford anything. Including yachts and private jets.

For me though a lot of 4x4s are not owned by people for whom petrol is a completely irrelevant cost. There are too many of them on the road for that.

Company cars are a bit more complex than you imagine and companies have lots of different rules. For example if you are a sales guy doing high mileage and getting all your fuel paid for by the company often you will have to have a specific engine size and car type selected from a list, and there are also tax consequences to pay I believe. If you are given a car allowance then that tends to be fixed. You are expected to maintain a car that is compatible with your status and company requirements and you can claim back company mileage at standard rates. Other costs such as communting fuels and repairs are still your own, or if met by the company are taxable benefits.

The idea that there are large numbers of people driving around that have no motivation whatsoever to minimise their car costs/ fuel usage because the company pays them all is a bit wrong. Most big companies have large departments of nitpicking accountants who will bollock you at the slightest hint of excessive usage, including air fares, hotel stays and minibars. If a sales guy was registering extremely high fuel costs he/she would come under the hammer pretty quickly (unless he/she was a very successful one maybe ...)

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Well yes. Rich people can afford anything. Including yachts and private jets.

For me though a lot of 4x4s are not owned by people for whom petrol is a completely irrelevant cost. There are too many of them on the road for that.

Company cars are a bit more complex than you imagine and companies have lots of different rules. For example if you are a sales guy doing high mileage and getting all your fuel paid for by the company often you will have to have a specific engine size and car type selected from a list, and there are also tax consequences to pay I believe. If you are given a car allowance then that tends to be fixed. You are expected to maintain a car that is compatible with your status and company requirements and you can claim back company mileage at standard rates. Other costs such as communting fuels and repairs are still your own, or if met by the company are taxable benefits.

The idea that there are large numbers of people driving around that have no motivation whatsoever to minimise their car costs/ fuel usage because the company pays them all is a bit wrong. Most big companies have large departments of nitpicking accountants who will bollock you at the slightest hint of excessive usage, including air fares, hotel stays and minibars. If a sales guy was registering extremely high fuel costs he/she would come under the hammer pretty quickly (unless he/she was a very successful one maybe ...)

The other costs involved in private motoring (especially with the recent surge in leasing) probably make the fuel costs between a gas guzzler and an economical model pretty insignificant overall if you don't do many miles. It's a highly visible regular expense though so maybe people don't think of it in the round.

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  • 246 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
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      • up 5%



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