Factors causing the spike include Brexit, pandemic-induced global shortages and the war in Ukraine.this morning: “If you look at the two years before the pandemic, the average quarterly inflation was about 0.8%.”For example, in July 2021 a 2008 Audi A4 would have sold at an average price of €10,500. Buyers could now expect to pay €12,129 for the same car.
There are signs of the spike stabilising however, with average inflation dropping to 4% in the last quarter.“On the lower end of the market [inflation] is still rising quite sharply, but the upper end of the market - the cars that are about €20,000 and above - are slowing down to 1.5%.”High demand has caused inflation in used electric vehicles to reach 6.6% - meaning EV owners will now have the upper hand if they choose to trade in.
In response to the new figures, online marketplace DoneDeal said: “If the car market can be thought of as a sign of things to come, then it surely acted as the canary in the coalmine for inflation in the wider economy.” Mid-range and high-end combustion engine vehicle prices are expected to stabilise in the coming months, but the lower end of the market will continue to suffer supply shortages.
Low-income drivers are expected to be hit the hardest by this new development in the cost of living crisis.
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Source: NewstalkFM - 🏆 19. / 55 Read more »