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A NEW study reveals that car prices are rising twice as fast as wages, going up 1.94 times quicker than the average UK salary, with a car now costing almost 39% more on average than it did in 2012.
The study carried out by Moneybarn looked at how car prices and wages have changed between 2012 and 2022 and which vehicles have changed in value the most in the last twelve months. The research also looked back over the last three years, to see how the value of some of the first-ever electric vehicles in the UK have changed.
The results revealed that whilst the average UK salary is £25,971, the average price of a new car is £40,590. However, some cars have risen considerably faster than others, including the Renault Zoe – which rose in price by over 123.41%
The cars with the highest price rises:

Rank

Model

2012 price

2022 price

2012 price as % of median salary

2022 price as % of median salary

Price Difference

1

Renault Zoe

£13,650

£30,495

63.5%

117.4%

123.41%

2

Volvo S60

£22,785

£44,580

106.0%

171.7%

95.66%

3

Hyundai i20

£9,995

£19,035

46.5%

73.3%

90.45%

4

Volkswagen Polo

£9,920

£18,855

46.1%

72.6%

90.07%

5

Vauxhall Astra

£12,995

£24,315

60.4%

93.6%

87.11%

6

Ford Fiesta

£9,795

£17,905

45.6%

68.9%

82.80%

7

Volkswagen Touran

£18,170

£32,735

84.5%

126.0%

80.16%

8

Volvo XC90

£35,175

£61,990

163.6%

238.7%

76.23%

9

Honda Jazz

£11,605

£20,440

54.0%

78.7%

76.13%

10

Nissan NV200 Combi

£17,293

£30,255

80.4%

116.5%

74.96%
The Renault Zoe was also the car that increased the most in cost over 10 years, by 124%. One of the few electric vehicles available back in 2012 priced at just £13,650, today, that price has more than doubled to £30,495.
The Volvo S60 ranked in second place, with a 95.66% increase. Seeing its value increase by just less than double, the Volvo S60, has increased from just over £22,750 to over £44,500 today. The S60 is a compact executive car and has been a mainstay of the Volvo range for over two decades.
The Hyundai i20 had the third biggest increase at 90.45%. While it remains a relatively affordable option at £19,035 (73.3% of average earnings), the Hyundai i20 has still seen its price increase significantly over the last decade, going up from £9,995 in 2012.
Further Findings:

  • All of the cars in the top 10 have seen their prices rise by over 74%, including one of the UK’s most popular cars, the Ford Fiesta, which has risen by 82.80%.

  • The cost of buying a car has increased by over £2,700 in just one year – with the average price £38,429 in 2021 vs £41,219 in 2022.

  • The Tesla Model S had the second biggest EV cost increase at 32.48%, followed the Renault Zoe. Teslas are amongst the most popular electric vehicles but they can also be some of the most expensive too. The on-the-road price of a Tesla Model S has increased from £71,700 to £94,990 in the last three years.

  • The study found both driving costs and road tax have increased significantly. In 2012 there was just a 6p difference between a litre of unleaded and diesel, at £1.42 and £1.48. Now, unleaded has risen by 14% to £1.62, while diesel is now £1.76, an increase of 19%. In terms of road tax, those with a vehicle less than 131g/km in 2012, were exempt from a registration fee, they now have to pay up to £230, with the government cracking down on high polluting vehicles. ew the full research here:

  • View the research here: https://www.moneybarn.com/carflation/

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