Currently reading: The Knowledge: New car prices rise by 6.6% since January 2021
Analysis of what's behind the huge increases in the costs of new cars, as the average price hits £40k-plus

New car prices have climbed 6.6% since the start of 2021 to an average of £42,054 across all brands, new data from What Car? shows. However, car buyers are experiencing far higher cost hikes due to the sharp reduction of discounts.

A combination of production slowdowns due to parts shortages, the move to electrification, and a hefty increase in raw material costs have all forced car makers to increase prices in the past few months, hurting buyers looking to replace older cars.

However, some brands – including BMW, Dacia, Land Rover, Nissan and Suzuki – have seen average prices climb much higher than the 6.6%

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