Your Car is Costing You More
The cost of simply owning a car is driving up.
April 6, 2011— -- From the rising cost of the rubber on your tires to a two year high in oil prices, it's no surprise that families are having a tougher time budgeting their driving. Gas has always been an expense for families, but with prices skyrocketing, many are finding that their cars are becoming their most serious budget concern. AAA has calculated that simply owning a small car costs you $6,758 a year – an SUV can cost upwards of $11,239.
"I did have sticker shock. It was $76 to fill up a tank of gas!" minivan driver and mother of four Karen Slimmon told ABC News. That is almost as much as she paid for groceries to feed her family.
Gas prices across the nation are nearly a dollar higher than they were a year ago. That can make a huge difference in a family's budget.
"I think we may have to carpool more when we are driving the kids to school and try to really cut back on the back and forth trips."
There are many reasons why oil prices are going up – from the turmoil in the Middle East to a continuing recovery.
The uprisings in the Middle East have disrupted oil producing countries, including Libya, which exported 1.5 million barrels of crude a day before the rebellion spread and created pitched battles for prime oil fields. Although the United States does not import any oil from Libya (it mostly supplies Europe – notably its former colonizer Italy), a fear that protests would topple larger oil providers such as Saudi Arabia and Iran, disrupting the flow of the economic lubricant, sent oil prices skywards.
Beyond the uprisings, the price of oil had already been steadily rising as demand increases in both Europe and the United States while economies recover. This is in addition to strong continuous demand from China and other developing nations.
This combination of both rising demand, and the risk of dropping supply, are the two main factors pushing prices higher globally.
Oil not the Only Problem
It's not just oil that has people rethinking their budgets. Many other costs associated with your car are rising. The high price of driving goes well beyond filling the tank.
