The cost of running a new car in the UK is growing steadily, research suggests.

According to figures from the RAC, the average new car now costs more than £5,500 a year to run, equivalent to £15 a day.

RAC's 'Cost of Motoring' Index tracks all costs associated with owning and running 17 different models of car.

Depreciation is still the biggest cost factor - increasing by 22 per cent in the last 12 months.

The average person now loses £2,420 a year, equivalent to £46.50 a week, the figures show.

RAC spokesman Sean Morris, who compiled the cost index, said: "The second biggest investment we make after home ownership - car buying - is getting bigger.

"For such an important decision, too few of us understand the spread of costs associated with owning and running a car.

"The index results will be unwelcome news for many, but motorists must better understand the true cost of their vehicles."

The annual cost of finance has risen by 10 per cent to £1,040, while average insurance costs have surged £25 to £412.

But petrol prices have fallen by around 3.5 per cent in the last 12 months.