The average price of a new car in the UK has leapt by 38% in the past decade.
The average offered price of cars has increased from £24,383 to £33,559 since February 2008 according to research conducted by automotive price experts cap hpi.
“The real driver of this is the changing structure of the marketplace”, said Matthew Freeman, managing consultant at cap hpi. “Over the past decade, we’ve seen more expensive models being rolled out. We see more SUVs on our roads, and they are usually more expensive than the equivalent saloon.”
“Many brands have moved to offer a more luxurious specification mix and eliminated their entry-level specifications. This is partly a response to PCP making cars more affordable, and consumers moving up to more expensive models. PCP has also shifted focus from the entry price to the monthly repayment and having a model to advertise as ‘From £9,995’ is no longer a priority – cars are more likely to be advertised on their monthly payment.”
Research found more premium brand cars across almost every segment have appeared over the past decade, with many premium brands experimenting with new segments. The growth of diesel ranges has also driven up the average price, with diesels around £1000 more expensive than the equivalent petrol version.
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