When did new cars get so expensive?

[Kev_Mc]

There's a billboard ad campaign at the moment for the VW Jetta. It says something like "Less than you'd like to admit". The first time I saw it, I thought it was a Passat (from £17,000), and thought it wasn't too bad, but not that cheap, then find out it's a Jetta 

Apparently, the cheapest diesel Focus (1.6) starts at around £18,000!

I'd love a new Saab Wagon, but £28k+ is too much for me. Even a diesel Skoda Superb Estate is something like £22k..

Didn't seem that long ago when everyone was complaining about cars being cheaper in Europe than here - they did get cheaper after that, but now we seem to be back where we started.

Who can afford these cars, in these days of austerity? People can't even get the credit anymore, so I don't understand how they can get away with charging so much...

Apologies if that doesn't read well as the Mrs is waiting to nick the laptop from me! 

[sgould]

The cost of changing a car is far too much these days.  I think that almost all new cars are company funded in some way.  I used to change quite frequently, But rather than change I spent the money on the Hirsch upgrades - it felt like a new car - cost less than a new car - and went better than a new car!!  

And all the wearing out bits (tyres/brakes/suspension) were renewed.

[Steve McF]

This has puzzled me for a while - new car prices have been creaping up more and more over the years.

My Dad bought a Mk Fiesta 1.1L with brown vinyl roof, metallic paint, cloth seats and rear wash wipe in 1977 for £2000.

In 1983 he bought a 1.6L Sierra with metallic paint, auto box and cloth seats for about £5000.

Around 1986 he bought a 2 year old Escort 1.3L 5 door, cloth seats, 4 speaker stereo for about £5000 again.

He had 3 further Escorts after this, of which I can only remember the price of the last one in 1998 - 1.6 Finesse 5 door, metallic paint, electric front windows, aircon, alloy wheels - £11,500. If Focuses are now over £15k new, how is anyone supposed to afford a new car?

I am seeing more and more Citroen C1s/Peugeot 107s/Toyota Aygos one very late plates on the road now, and they sell for between £6000 - £9000 for a small city car with a 3 cylinder 1 Ltr engine and in some cases aircon, metallic paint, electric windows and alloys :-)

How anyone can afford anything else, god only knows!!!!!

And as someone who works at Land Rover, the cheapest Freelander starts around £22000 I think. Needless to say, I don't drive one myself!!!!!

[Kev_Mc]

My Mrs bought her Seat Leon as a pre-reg (6 miles), so it was cheaper than the retail price of around £10000 at the time (2004) - a basic Leon now starts at around £14,000, and I think that's with £2k of RRP.

I know a lot of these new cars driving around are debtmobiles, but surely people are stuggling to get credit these days?

[Leon TurboX]

I know a lot of these new cars driving around are debtmobiles, but surely people are stuggling to get credit these days?

Plenty of credit available, just rates tend to be more realistic these days.

[Rob Beard]

Alot of the money you pay goes in to design and development to keep the Enviromental People happy and how a new car can be re-cycled, the other money goes into (IMHO) the stupid rediculous electronics, Auto wipers auto lights sat navs and tooth blue, wifi , I can't wait 'til they all go wrong, we'll be in the crape then, big time, they will be to expensive to repair, so becoming worthless on the used car market.

Saying that! have you seen the price of campers and caravans.

Rob

[John_D]

Rather a long time ago I'm afraid :0( In 1965 my father bought a brand new Hillman Imp for £565. In 1973 I bought a one year old Ford Capri for £1200. In  1975 I bought a three month old Renault 5TL for £1500. In 1976 I got my first mortgage so the purchase of almost new cars ceased :0(. In  1993 I was feeling more affluent and bought a one year old Pug 205 diesel for £6500, which is the most I've ever, and ever will, pay for a car! (paid about £5K for my Saab six years ago)
 

[Kev_Mc]

Welcome to STT John_D 

[DRM]

The price of used cars in the UK is bliss compared to here in Australia.  New 9-3 XWD @ the equivalent of £46000 anybody?

My local dealer has a special offer at the moment, lopping a whacking $21000 off.  That brings it to £32000, still about £8000 more than in the UK.

As for the German marques.... horrible

[Geoff1951]

HI DRM, IIRC you have ridiculously high import taxes on motors don't you? I know over in WA the prices are eye-watering.

[DRM]

Hello Geoff.

I think there are some hefty import taxes and there is also luxury car tax, payable on cars above about A$60000 at a rate of 33% of the initial tax free price.  There is also the 10% Goods and services tax on any car.  I think the pricing I alluded to at my local Saab dealer is an effort to get below that threshold.  Additionally, in Victoria, one has to pay stamp duty.  I forget the rate currently. 

The main problem is that the government has effectively ring-fenced things.  There is almost no other way to get a car.  Obviously geography makes it difficult to do as we did in Britain ten years ago, simply nip across to Europe and buy a cheap car.  But notwithstanding that, it is almost impossible to import a car here.  One person migrating to Australia can import one car, as long as they can demonstrate ownership and usage for at least one year in the home country and as long as it can meet Australian Design Rules, and as long as one can afford the various import costs etc.  The only other way is if it is a classic on a prescribed list.

So, only recognised manufacturers can import cars, meaning they do not have to become competitive on price and the consumer gets whacked on the price of new and old.

[Geoff1951]

Hi DRM
Yep, it's stacked against anyone who wants to buy something non-mainstream. When I've been over to my rellies in Perth I've looked at the biggest sellers and it's mainly Japanese or Korean, certainly in their part of the country. Even the small Fords and Holdens are Japanese behind the badge. And with average salaries lower than over here (I know the gap's narrowed a lot) it makes it doubly difficult.

[DRM]

The Holdens have a large GM influence plus Korean manufacturing influence.  The Fords I am less sure about, but I know that the Ford Falcon I had the misfortune of driving for the best part of a year was a primitive dog of a car with appalling resale value at the other end.  Even the most passionate purchasers of Australian made products are turning away in their droves.

Japanese and Korean cars dominate the market.  If you want to criss-cross the country by car, you need a Ford, Holden, Toyota or Mitsubishi because otherwise you will find dealer support etc. difficult.  It is my bad luck that I find them so boring and therefore continue to pay through the nose for European cars.