New research from “What Car?” claims that new car prices have risen by 5.2% on average since UK voted for Brexit, adding £2 billion to consumer’s bills in seven months.
The publication describes the price rises as the product of a ‘perfect storm’ of a weak pound, rising inflation, and dealer profitability concerns. However, “What Car?” highlights the fact that the increases are only in certain segments.
The research shows that luxury cars are actually 0.2% cheaper than they were last June, and executive saloons just 0.8% more expensive. This is in stark contrast to performance cars and MPVs which now cost 8.4% more on average and large SUVs 12.3%.
The study outlines a general trend by which manufacturers are gradually reducing discounts and withdrawing many of the most appealing 0% and low-rate interest finance deals as they seek to regain control of profit margins.
What Car? editor Steve Huntingford, explained: “We knew average prices were going up, but rather than a gradual rise, our research has shown that there has been a perfect storm of elements that has conspired to create a big bang in price hikes.”
“Fortunately, the aggressive sales targets that many dealers have mean you can still get a great deal if you buy from the right place. Our new car buying marketplace saves you the hassle of shopping around, letting you configure a car to your desired spec and then directly compare prices from dealers in your area.
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