The average price paid for a new car has risen dramatically over recent years according to a new report out from EurotaxGlass. Prices increased by 23% between March 2001 and March 2007, rising from £13,900 to £17,100.
There are a number of key trends which have fuelled this increase. According to the report aspirational brands such as BMW, Audi and Mercedes have enjoyed significant market growth. An increased interest in the more expensive diesel models has also contributed and manufacturers are tending to sell an increased number of higher specifications.
The average price for three-year-old car has also increased since 2001 (£6,700 to £7,800), but depreciation is an increasing cost (£1,700), which has cancelled out price rises for second hand cars.
This report once again illustrates the cost of motoring to drivers. National statistics show that motoring costs are falling when inflationary effects are taken into account, but the cost of buying a new car, especially with increasing interest rates is still a significant cost to many. This is an interesting barrier in light of current thinking when there is greater encouragement for ‘greening the fleet’ and getting older, less efficient vehicles off the road.
(Source: just-auto.com editorial team)