The United Kingdom is facing economic conflict on multiple fronts, as international instability and domestic policy combined to create a perfect storm of rising family spending. Deficits and restrictions on Russian oil imports have pushed fuel prices to their highest levels, while Brexit-related shipping problems have exacerbated the growing inflation crisis in household goods.
But economic instability does not stop with raw materials and supplies; Whole industries are beginning to see the disadvantages of their own brand, especially as the automotive industry represents a significant improvement in spending for consumers. According to a recent report, the retail price of some new cars has increased significantly – up to 26%.
The price of a new car is skyrocketing
Several popular models of cars, such as those produced by several major manufacturers, have seen their retail prices increase in relatively small windows over time. Between 2019 and 2022, as most new vehicles become more expensive to buy new, the Vauxhall Astra tops the list of the most inflated prices.
Where the Astra was sold in 2019, 2022 at a list price of just under 19,000, its price has increased by 26% to £ 23,805. Nissan Kashkai was in second place with a 25% increase in prices, with inflation ranging from 17% to 19% for the Ford Fiesta, Fiat 500 and Kia Sportage.
Running costs have also increased
Along with the growing pressure on households related to the running costs of cars comes the rise in prices. Rising petrol and diesel prices have hit many driving families hard, while insurance costs have also risen significantly in recent years – despite recent measures by the Financial Conduct Authority to prevent insurers from imposing ‘loyalty penalties’ on existing customers.
As the costs of car ownership continue to rise, hard-up families are looking for alternative ways to access a private car – such as with a new car lease with good fuel economy. The recent performance of electric vehicles (EVs) has presented customers with zero-carbon alternatives for transportation, saving fuel costs and also saving overall maintenance costs. However, EVs are significantly more expensive than fossil-fuel vehicles, which creates another barrier to the entry of struggling consumers.
Recent market volatility
Many factors can be attributed to the rise in the list of popular cars in 2022, but perhaps the biggest reason was the chronic shortage of microchips starting in 2020. Vehicle production has slowed down due to a shortage of important global semiconductors. Global – Leads to showroom deficits and rising demand for second-hand cars. Even as carmakers return to pre-epidemic levels, demand exceeds supply, leading to higher overall prices.