Prices for cars like Ford Fiestas, VW Golf and Vauxhall Corsas are rising along with gasoline prices, putting more pressure on households, Uswitch says
Drivers trying to buy a new car are paying around £ 10,000 more than they were a decade ago.
In addition to rising food and energy prices, the costs of owning and operating a car are also among the expenditures that are now putting a considerable strain on household finances.
The price of some of the UK’s most popular vehicles is currently rising up to three times faster than profit.
And since the costs for used cars due to the pandemic are also being driven up in addition to the persistently high fuel costs, drivers are feeling their pockets.
According to the numbers released by Uswitch.com, some of our favorite vehicles, including Ford Fiestas, Vauxhall Corsas, and VW Golfs, cost almost double what they did a decade ago, while people’s salaries have not increased by the same amount.
At the top of the list is a Volkswagen Golf which, according to the comparison site, is around 72% more expensive than 10 years ago – a jump from around £ 13,000 to more than £ 23,000 for a new model.
Once a popular first car for many new drivers, the cost of a new Ford Fiesta has also skyrocketed over the past decade.
Depending on the specification, a new vehicle cost between £ 9,000 and £ 10,000 in 2011. Anyone looking to order “the country’s most popular car” today faces a bill closer than £ 17,000, an increase of nearly 70%, according to auto experts.
Vauxhall Corsas and Astras, as well as the Ford Focus, are also among the most popular cars, the costs of which have increased significantly, Uswitch says, pushing them over many drivers’ budget in 2011 to £ 25,780 in 2021.
And the news may not be much better for those drivers in need of a replacement vehicle and considering opting for a used car instead of a new one to avoid the rising prices.
Great Britain is also currently seeing a significant turnaround in the value of used cars, which traditionally lose value the minute they are driven from the garage forecourt.
A slowdown in new car production over the past 18 months due to the global pandemic and the resulting problems with sourcing certain new car components, adding to long wait times for new engines.
In combination with the pent-up demand of people who now have to or want to replace their vehicle since the lockdown, the costs and demand for older vehicles have increased rather than decreased.
Figures released by Auto Trader suggest that used car prices are up more than 15% year-over-year, with some vehicles soaring nearly 50% – which in turn outperforms any wage increase for most people.
A rise in the price of used cars has also been attributed to the rise in inflation in July, with the National Statistics Office suggesting that coronavirus fears that commuters’ desire to avoid trains and buses also contributed to the demand for used cars and thus rising sales prices.
Joel Kempson, auto insurance expert at Uswitch.com, said the price hikes would mean many people are struggling to afford a car.
He explained: “Since the purchase price of popular cars has increased faster than our average wage, this could mean that more people, especially first-time drivers, can afford a vehicle.”
But it is not just the price of the car that puts relentless pressure on drivers’ finances. Diesel and gasoline prices are now also added to the list of rising costs that households have to negotiate with.
The RAC, which issued a dire warning of rising fuel costs this summer, has revealed through its Fuel Watch price-monitoring initiative that prices are now very close to some of the highest prices in the past decade.
The average price for a liter of diesel at the pump this month is around 136 pence and 135 pence for a liter of unleaded gasoline.
In 2012, when prices were considered the highest, a liter of diesel was 142.4p and gasoline was 136p, which means a liter of unleaded gasoline is now very close to hitting those sky-high levels again.
And while prices barely changed in August after eight months of consecutive price increases, which gave a little respite, RAC spokesman Rod Dennis says the future price structure remains unclear.
He explained, “A full nine months of continuous price hikes finally came to an end in August, but that is really no consolation for drivers who paid significantly more to refuel this summer than last year.
“Although an end to rising prices is to be welcomed, there are still few indications that pump prices will actually fall. Crucial to what happens next is how the price of oil changes.
“It’s a picture that we need to continue to watch closely, especially if oil climbs back to near $ 80 (£ 58.54) a barrel, as it did in July.
“It is undisputed how much more expensive this second ‘summer stay’ was for drivers compared to 2020. With so many of us traveling long distances this year, we’re paying around 20p more per liter for gasoline and diesel is likely to have been widely recognized. “
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