New Car Price Shock

Sat 9th Jul 2022

The cost of buying a brand new car is rising twice as fast as wages, which is leading to a surge in interest of affordable nearly-new options from car retailers such as CarSupermarket.com.

CarSupermarket offers the option of thousands of cars, with speedy delivery and easy monthly payment plans, and looking at the inflation of some of the new cars on offer it is easy to see why used cars are so popular.

Analysis from Moneybarn has looked at a range of models over the last ten years, and their ‘Carflation’ report has pinpointed some of the excessive differences in the price of cars from more than a decade ago.

The report has revealed that while the UK average salary is £25,971, the average price of a new car is £41,219, a figure which has increased by more than £2,700 in the last 12 month alone.

But is the cost of new cars over the past decade which will shock many, some of the UK’s most popular brands have seen a massive jump. The cost of a Ford Fiesta, a long time best seller in Britain, has jumped by 82.80%, and that’s not even the most significant increase. 

In 2012 a Renault Zoe would have cost £13,650 brand new, but that figure in 2022 is £30,495, an astronomical leap of 123.41%. 

Speaking about the increase, the ‘Carflation’ report said: “One of the only electric vehicles that was available in the UK back in 2012 was the Renault Zoe, with a price of just £13,650.

“Today, that price has more than doubled to £30,495, although a big part of the reason for this is the government incentives in place.

“In 2012, the Plug-in Car Grant meant that you could receive a discount of 25%, capped at £5,000, but today that cap has been dropped to £1,500.

“Taking this into account alongside the wider inflation in prices, the cost to the consumer for one of these vehicles has skyrocketed over the last decade.”

The Zoe is the only car to have doubled in price in the last decade, but many more come close, including the Volvo S60 (95.66%), Hyundai i20 (90.45%) and the Volkswagen Polo (90.07%).