Drivers 'paying larger repair bills despite recession'

Monday, July 12 2010

While the cost of buying a new car in Europe has decreased, figures suggest it could cost more than ever to get a vehicle repaired.

Statistics from the European Commission's latest report show consumers on the lookout for the latest automobile enjoyed lower prices across much of the continent.

Indeed, in spots such as Slovenia and Lithuania prices fell by as much as 13.4 per cent and 11.1 per cent respectively.

However, the cost of repairs, maintenance and spare parts increased significantly above the rate of inflation, potentially pushing bills up for thousands of people.

Overall, it was 1.5 per cent more expensive to have a car worked on by experts - a 0.7 per cent hike in real terms.

Joaquin Almunia, commission vice-president in charge of competition policy, says: "I am dismayed to see that the price for repairs and spare parts continued to rise during the economic recession."

The rise of repair costs could hit those with poor understanding of financial matters most, with Axa last week suggesting it is the inability to control money that causes many people to plunge into debt.