AA promotes credit card to help with rising fuel costs
In a well timed release, the AA is using the rising cost of motoring to promote the benefits of its AA credit card.
The 1p increase in fuel duty, which took effect from October, and the expected rise in the cost of a litre of unleaded petrol of a further 2.5p in the new year with the VAT increase will be challenging for motoristssays the AA, which suggests that if people use the AA credit card, motorists can
earn a return of up to 4% on motoring or fuel spend which can help limit the pain.
Mark Huggins, director of AA Financial Services commented, “The AA’s figures show that the cost of fuel has risen by nearly 11p per litre over the past year, adding £23 to the monthly petrol bill of a two-car family, while the average cost of a comprehensive car insurance policy has risen by 39 per cent over the same period. This is putting huge pressure on many household budgets at a time when many families are struggling to stretch their £ further.
“Using the AA Credit Card for all fuel purchases helps to combat these increases in cost. In addition to the introductory 0% on purchases for 10 months (APR 16.9% typical rate variable)*, the card earns double points on the purchase of fuel, including that bought from supermarket filling stations while AA members earn points at twice the rate of non-members,” Huggins points out.
The well thought out release gives family examples of how the credit card can save money and also gives details of a calculator at www.theAA.com where work out their points-earning potential.
The following examples show how families, with or without AA membership, can make savings by switching their everyday spend to the AA Credit Card.
Family 1 – AA member – using card only for fuel purchases, over 1 year, 15,000 miles assuming average 35mpg, total 1,948 litres.
Total cost assuming an average price over the year of 119p per litre, total cost £2,318.12
Fuel points earned: 4,636
And if in addition they spent £250 per month for normal shopping – i.e. groceries, luxuries etc: £3,000
Non-fuel points earned: 3,000
Total points earned: 7,636
Family 2 – non-member – using card (same purchase pattern as above)
Fuel points earned: 2,318
Non-fuel points earned: 1,500
Total points earned: 3,818
-redeemed for shopping voucher,
AA member: worth £76
Non-member: worth £38
– redeemed for contribution towards cost of AA car insurance,
AA member: worth £152
Non-member: worth £76