Heads up on car price comparisons and car price increases


To give you an idea, small car loss leader prices in the mid 90s were £6,995. A decade later they were still £6,995. In recent years it's crept up to £7,995. The real price inflation has been in the models people want to buy - the ones with sports trim.


SUVs are similar. But as they're more expensive and mostly with less engine and trim options, the price rises are easier to see. It's the huge range of different engine and trim options that makes comparisons difficult. I always think a long list of different model variations means manufacturers can charge a longer list of different prices.

Here are some car price comparisons:
VW Polo price range 2009 £7,700-£15,800 NOW £9,790-£18,875
Mazda2 price 2009 £8,900-£12,000 NOW £9,820- £14,445
Toyota RAV4 price 2008 £18,700-£25,200 NOW £23,093-£27,740
Honda CRV price 2008 £18,600-£26,600 NOW £21,005-£31,850
Nissan X-Trail price 2008 £22,300-£26,800 NOW £23,995-£28,820 - NOT BAD

You could say the models have changed or been improved. To me it's price inflation way above the 1.5/2.0% politicians talk about and a sign of more inflation to come.

Car insurance premiums have also rocketed. It's the reason I don't like the change from car insurance bands1-20 to car insurance groups 1-50. It reminds me of when pounds shillings and pence became decimal - we ended up paying more. Make anything different and they charge different - more - money.

Regards
Ralph