Cheer up - you’ve never had it so good

Brexit may be about to deepen our financial pain, with weaker sterling and higher oil prices looming on the horizon, but allow me to administer some Christmas cheer

Supply problems could mean higher prices for consumers (Getty)

It is certainly true that most people have had a miserable few years. Inflation is accelerating again, while wage growth remains sluggish and tax cuts, if any, have been extremely modest. The chances are that Brexit will deepen the financial pain, at least in the short term. Weaker sterling and a global trend to higher oil prices will feed through powerfully in the next few months. Miserable, yet? Then allow me to administer some Christmas cheer.

In one respect, you’ve never had it so good, that is as soon you get behind the wheel of your car. For vehicles today are cheaper, cleaner, better equipped, more reliable, more durable, faster, safer and more economical to run than they have ever been. Today they are so sophisticated they almost drive themselves – think of sat nav, cruise control with automatic braking, and self-parking software. Surely that’s something to celebrate?

Pre-millennial motorists (such as the writer) look with dismay on the things that are taken for granted by drivers nowadays. If you were looking for a used car for about £1,000 to spend back in the 1980s you’d be lucky to find something that hadn’t already disintegrated into a pile of rust, could do more than 60 mph and wouldn’t break down a few times a year. Today £1,000 – even just in cash terms – will be sufficient to fund something that more than likely won’t break down and can be mostly relied upon. If you factor in inflation, that £1,000 translates to £4,000 now, more than enough to buy something presentable, and, indeed, not far off the list price of the cheapest new car on the market (a Dacia Sandero, at £5,995). Airbags; Bluetooth, DAB radio; air conditioning; heated seats; parking sensors and rear view camera, even a pollen filter… all unknown or rare even a few years ago, all now fitted to a reasonably specced Ford Focus. Price comparison sites and the internet have also brought more bargains within reach and helped with the one cost that has gone up substantially, which is insuring your car.

Petrol and diesel prices are up on last year, and are very likely to rise again, but they have to be kept in some sort of perspective. An 8 per cent rise, say, would put them back to where they were in 2007, and you should always bear in mind that about two-thirds of the price of fuel is taxation, and therefore in the hands of the Treasury and, indirectly, motorists and consumers as voters. Not so long ago, for example, public and media pressure forced the Treasury to abandon the “fuel duty escalator”, which virtually guaranteed that pump prices would go up by more than general inflation or wages. On the other hand, one should also bear in mind that the escalator was there for a reason – to raise money for public services, and to discourage the burning of fossil fuels and encourage people to get onto public transport to help meet environmental targets.

There have been scandals, such as the VW “dieselgate” affair, and occasional instances of car makers letting their customers down with dodgy brakes or rusty bodywork, but the passenger car’s contribution to human happiness cannot be overstated. The future, too, is bright. The car manufacturers have pushed vast investment into new technologies such as electric vehicles, petrol/electric hybrids, and driverless cars which benefit the planet as well as consumers with lower CO2 emissions, lower fuel bills and safer roads. Safety continues to improve and historically, fewer people die or suffer serious injury in cars than for most of history (though the trend in the last few years is less encouraging). Financial innovation, such as leasing a car via monthly payments in a PCP scheme, has also brought new car ownership within the reach of many more consumers. When autonomous cars arrive you won’t even need a driving licence, and car ownership will be open to all. As you drive home for Christmas, and, understandably, wince at the cost of filling up the tank, think of those tidings of comfort and joy.