Report on driving school prices

Madrid, 26 August, 2015. An OCU study has analysed the prices of 321 driving schools in 25 cities. The main conclusion is that there are significant price differences between driving schools that allow consumers a genuine choice and depending on the number of classes, they can save €549 on obtaining a driving licence. The study results are published in number 406 of the OCU-Compra Maestra magazine for September.

The total cost of obtaining a driving licence is the sum of different concepts such as enrolment, the necessary teaching materials, the theoretical course, practical classes, the medical certificate, the driving test fee and processing and administration costs. But it is the number of practical classes necessary to pass the test which has the biggest impact on the final cost of the driving licence. Depending on the learner profile, the average cost is 671 € for those who need just 15 practical classes. This would rise to €834 for those who take 20 classes and €1,412 for those who need to have 35 lessons.

OCU warns that prices vary considerably between cities, reaching differences of up to 180% between the most expensive and the cheapest city. Of the 25 cities studied in the case using the average profile of 20 practical classes, La Coruna is the cheapest city (€558) followed by Sevilla (€572) Badajoz (€576) and Gijon (€582). By contrast Albacete (€995) Logrono (€1,080) Gerona (€1,258) and especially San Sebastián (€1,575) are the most expensive cities to get a driving licence.

In the same city, potential savings are significant, though there are some notable exceptions. The average saving on 20 practical classes is €370, which represents 35% of the cost of the driving licence, although once again the differences between cities are important. In towns like San Sebastián (€544) Madrid (€566) Logroño (€706) and especially Gerona (€762) there are savings above 40%. By contrast, Tenerife (€203) Valencia (€202) La Coruna (€151) and especially Albacete (€117) are the cities where consumers have fewer opportunities to save money.

However there are exceptions to these price differences. OCU has found that in many cities prices are extremely similar which demonstrates a serious lack of competition. In Tenerife and Salamanca, but especially in Murcia and Albacete, there are great similarities in the prices for tuition and practical classes, which leads one to assume that there are very few differences between the various driving schools. This coincidence in price can only be explained by the existence of anti-competitive practices. As a result OCU has reported the existence of these practices that harm the interests of consumers to the National Commission on Competition and Markets (CNMC in Spanish). OCU has asked the CNMC to open an investigation to determine the existence of price fixing agreements and punish the companies involved.

Faced with this situation, OCU gives the following recommendations for consumers who are planning to get a driving licence:

• Look around before you pay: It is important to be thoroughly informed about the prices in your town or city. You can also consider getting your licence in a cheaper city.
• Ask about the practical classes: In many cases it is decisive to know whether the enrolment fee includes any free practical classes. The average is usually 7 classes, although in some cases it can reach 25. This is a widespread practice (Albacete and Santa Cruz de Tenerife are the only cities where this doesn’t happen).

• Price is not everything: You should also evaluate other aspects such as class times and location. It is advisable not to limit yourself to the area close to home. Look for cheaper prices elsewhere in the city.
• Word of mouth is important: Talk to family and friends. Other people’s experience in getting their driving licence is valuable information.
• Check the fine print: do not make any payments without having understood exactly what it is you are paying for. And if you have any questions or concerns, do not be afraid to ask, information is a consumer right.
• Make an estimate about how long it will take: enrollment expires in 82% of driving schools. If this time passes (it can be from less than 6 months up to 2 years validity) and you have still not obtained your licence, you will have to pay to enrol again.

• Take an overall view of prices: You need to add up the prices of all the items. Enrolment could be very cheap, but if the practical classes are expensive the final cost could be higher. How long the practical classes last is another key issue, a 30 minute class is not the same as one that lasts 1 hour.
• Don’t forget about VAT: even though they are a minority, there are driving schools that do not include the 21% VAT in their brochures in order to make their offer more attractive. Always ask if VAT is included and if it is not, calculate prices with an additional 21% in order to make a fair comparison.
• Ask about the number of teachers: on average there are 3 per driving school, but a considerable number of them have only one. Find out before paying, as this can be a drawback if there are a lot of students. This will affect how long you will have to wait before starting the practical classes: although the average is five days, there are driving schools where it is necessary to wait 1 month.
• Choose the offer that best fits your profile: there are big differences between driving schools and also 23% of them have different rates according to learner needs.
 
For more information (media): Eva Jimenez Tel .: 91 722 60 61 - ejimenez@ocu.org www.ocu.org