How can people afford cars?

2005 RAC cost of ownership puts the cost of running a Vauxhall Corsa 1.2l at £9.36/day. and a 1.6l Ford Focus at £13.04/day. Since fuel prices have increased some 40% since 2005, that puts it up to some £10.61 for the Corsa and £14.11 for the Focus.

Once you add in other factors (inflation, extra cost of driving in London (higher insurance, paying for a parking space, congestion charge, higher fuel costs than national average)), £15 a day sounds like a reasonable figure for a family size car.

RAC source: http://www.rac.co.uk/web/know-how/owning-a-car/running-costs/motor-index-results-q3-05.htm

I know they will have pulled that figure from somewhere but it's what assumptions and how they come to that figure that is important. I think they must be assuming a new car and all service and maintenance being done by a dealer. Two factors which will greatly increase the cost of owing a car and two things which I do not think most car owners do.

Fuel in London is cheaper than most places in my experience.