I know inflation's played a part in it. And I know that the safety equipment new cars are required to be fitted with isn't cheap either. But when even the most basic VW Polo with 60bhp and no aircon costs over £10k, you can see that cars are definitely getting more expensive.
A decade ago, ten grand could buy you a brand spanking new 100bhp Citroen Saxo 1.6 VTR. A quick, handsome, agile little car that could do 0-60 in 9.4 seconds and deliver 42.2mpg on the combined cycle. That's pretty impressive for a ten year old car. It was loaded with kit as well. You'd get change with that car if you paid £10k for it.
At the same time, you could get an entry level Megane for just under £10k too. OK, it was a bit Spartan, what with its manual windows, plastic wheel covers, cassette player, puny engine and black plastic bits all over it. But that was a lot of car for £10k. Now, the cheapest new Megane is £16,725. Sure, there will be discounts, but there were discounts available on the old one as well. And of course there were huge discounts for the Saxo, being a Citroen.
If you want a lot of car for £10k, then of course you can look on the secondhand market. You can get a superb car for well under a grand if you're buying used. But because people's salaries haven't really increased since the year 2000, why have the prices of new cars?
6 March 2012
The new M3 will be over £60k when it arrives next year!,, The world has gone mad, but bear in mind that many key costs have risen well ahead of inflation over the last 10 years.
Materials, especially steel, copper and rubber have escalated hugely. Production costs, especially energy, have soared. The increased cost of fuel has had a huge impact on the price of distribution, and let's not forget the government's £1000 luxury car tax.
That said, the major players are making great returns, but as a petrolhead, as long as they plough some of the money back into making even better cars, I can live with that. At the end of the day, they run their businesses to turn a profit, so good luck to them.
28 July 2008
But have you calculated for inflation?
You know, I do believe that is a 'pec'...
15 June 2012
Materials, especially steel, copper and rubber have escalated hugely. Production costs, especially energy, have soared.
I guess that's true. I didn't consider the costs of the raw materials used for cars. That probably is a very important factor.
It's just a shame when you look back at cars from not that long ago like the Saxo VTR and 106 Rallye and see that they cost less than a 60bhp Polo with no aircon from today. But I guess those cars are much cheaper now on the secondhand market. Still, an affordable modern equivalent for under £10k is much needed.
15 June 2012
But have you calculated for inflation?
Read my first sentence!
I'm sure inflation would play a part, but one would expect the average person's salary to increase in line with the rise of new car prices.
19 December 2008
Between the early 90s and the early 2000s most cars hardly got more expensive, and generally got better made, and a lot more kit. in real terms we never had it so good.
Since the mid 2000s though inflation has hit, and hit hard. Not helped by the 25% devaluation of sterling since the banking crisis. Wages have certainly not kept up in the last few years.
Add to that the expensive technology we are having thrust upon us, just how much more does a euro 5 turbo diesel engine cost compared to a naturally aspirated petrol engine of 10 years ago in the average family car?
Then there is tax. the £1000 extra for more desireable cars, plus the extra 2.5% vat (another £1,000 on a £40K car).
Maybe the currency will strengthen in the next few years, and maybe wages will start to catch up with inflation, until then, i think cars will continue to get more expensive in real terms
7 August 2008
Take a look at CAR this month (landed on my mat yesterday). They have just taken on board as a long termer the new Suzuki Swift Sport and are already declaring that it should be considered as one of the bargains of the decade.
Yeah I know we are only 2 years into it but hey at £13,499 and no options required they are not far off, no?
(Comes with Met paint, 17" alloys keyless entry xenons and bluetooth et al as standard.)
I'm now on all fours
19 December 2008
Thats a lot of kit for the money, none of which would matter if it didnt drive as well as it does.
And its probably slow enough to drive almost flat out much of the time, making it probably more fun than most new cars at any price.
8 November 2007
I think all new cars have massively inflated prices. I like a newish car but would only buy a small car new as they don't depreciate much. I am really tempted by the nearly new prices on A5 cabriolets and merc e classes which show how inflated premium new car prices are.
7 August 2008
Thats a lot of kit for the money, none of which would matter if it didnt drive as well as it does.
And its probably slow enough to drive almost flat out much of the time, making it probably more fun than most new cars at any price.
And therein lies the gem. It's the smiles per miles or£'s thats the real bargain. Although there are some that think that can't be measured!
Owning the MK1, it truely is a car you thrash at legal speeds and have huge fun doing so.
Hows the Monaro btw - I keep finding them poping up in my search box on a regular basis and the VXR8......I can't help myself...
I'm now on all fours
19 December 2008
Hows the Monaro btw - I keep finding them poping up in my search box on a regular basis and the VXR8......I can't help myself...
The Monaro is great, just past 49,000 miles, so barely run in. Mine now has a pampered life sitting in the garage much of the time.
To be honest although the milage isnt high, i have had it from new and its never put a foot wrong. It might be seen as a bit 'special' in the UK, but its got really basic engineering in it which is just designed to work so its very simple to look after.
I quite fancy a VXR8 estate, but i dont need another car so it probably wont happen......