UK independent price monitor CarPriceCheck reports that the average price of a new family car rose by a below-inflation £180 in 2001.
Although manufacturers’ on-the-road list prices increased 1.94 percent in line with the government’s headline inflation rate of 2.05 percent for the year so far, transaction prices from franchised UK dealers increased by an average of just 1.28 percent.
As a whole, the UK car market – taking into account franchised dealers, internet retailers and independent importers – posted a one percent rise in the actual cost of buying a new vehicle – half the figure imposed by manufacturers.
“Car prices have yo-yoed all year,” said CarPriceCheck chief executive Steve Evans. On average a fifth of all models available on UK forecourts go up or down every month. The net effect has been a small rise.”
“The big concern is the pinch dealers are feeling in order to remain competitive. Based on this year’s figures, sales may be up, but profit margins have effectively been reduced by just over eight percent on a new car.
Exchange rate pressures (the pound sterling has risen by 3.3 percent against the Euro since the turn of the year) pushed up prices of cars independently imported from Europe by so-called grey marketers by one percent. However, prices for ‘small family’ car imports rose by 3.57 percent during the period.
Prices charged by internet retailers have remained relatively stable throughout the past 11 months except for the ‘upper medium’ (Ford Mondeo-sized) and ‘executive’ (e.g.Audi A4) segments, which recorded an average rise of £222 and £250 respectively.