Salaries fall behind car price inflation
A new study has found that the price of cars is rising faster than salaries.
The research, carried out by Moneybarn, looked at the increase in prices of more than 80 popular models over the past decade, and compared it to the rise in average salaries in that time.
It found that average salaries rose from £21,100 to £25,780, which was well below the inflation of car prices.
Although Nissan prices hardly changed, or changed only minimally, the cost of other brands rose significantly, with Jeep Wrangler undergoing the biggest increase with a 117.3% rise in the last decade. Peugeot brands also went up in value by significant amounts.
Paul Green, remarketing manager at Moneybarn, said: “In the past 10 years, Peugeot has seen an increase in popularity across the UK, which has subsequently led to an increase in price in models such as the 3008 and 508.
“The overall increase in demand, combined with higher levels of electric and hybrid vehicles taking over the market has led to an increase in production which in turn has led to an increase in prices (with increases of up to 117%).
“The UK average salary hasn’t increased at the same rate as the price of cars, which means that many car buyers now have to buy a new or used car on finance. The option to finance a car allows consumers to acquire a car they may not necessarily be able to buy outright, funding a lifestyle choice is just as important to people these days as getting from A-B.”
