New Car Prices Rise Again
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The list price of the average* new car rose by 1.4 per cent, year-on-year, to the end of October 2005, equivalent to a rise worth £182. The findings, published by EurotaxGlass’s in the monthly Glass’s New Car Market Trends report, point to a continued modest increase in new car prices, albeit at a rate that remains below that of UK inflation as a whole (the Retail Prices Index currently stands at 2.5 per cent).
The sector that has seen the greatest increases is the lower-medium sector (Ford Focus, Vauxhall Astra, etc), with an average list price rise of 3.2 per cent, or £396, over the past 12 months. At the other end of the spectrum, superminis (Vauxhall Corsa, Renault Clio, etc) have seen list price reductions worth 1.4 per cent, or £130, on the average car.
"Current low levels of list price inflation are particularly noteworthy given the continuous improvements being made to vehicle specifications, as well as the growing physical dimensions of new cars in most sectors," comments Alan Cole, Editorial Consultant for the Glass’s Market Intelligence Service. "Buyers are effectively getting more for less. However, demand is simply not strong enough to enable vehicle manufacturers to increase prices in response to rises in steel and energy costs."
He continues, "Dealers are caught between a rock and a hard place. Retained margins of 1 per cent or less on the selling price of a new car are the order of the day, and new car profitability is still in decline. This all means there is very little room to offer further discounts on new cars and, with finance deals already very attractive, retailers have to be increasingly imaginative to secure consumer interest."
Headline figures
There have been year-on-year list price increases at or beyond the 1.4 per cent market average in the following sectors:
The single largest list price rise during October was for the Lexus SC430, which increased by £1,993 to £53,905. The greatest list price fall was for the Toyota Corolla Verso 1.6 VVT-i T2 MPV, which had a reduction of £505 to £13,297.
To request a free electronic copy of the latest Glass’s New Car Market Trends report, email: marketing@eurotaxglass.co.uk, quoting reference ‘New Car 10’.
Web Sites:
www.eurotaxglass.co.uk (trade)
www.glass.co.uk (consumer)
Research Material:
Glass’s New Car Market Trends methodology
* The list price of the ‘average’ new car referred to in the monthly Glass’s New Car Market Trends report is based on analysis of over 1,000 models across key UK vehicle segments. To ensure the results are representative of true market trends, the data is weighted by sales volumes.
About EurotaxGlass’s
William Glass first published Glass’s Guide to Car Values in 1933 and July 2003 marked 70 years of the motor trade’s ‘Bible’. In 2000 Glass’s merged with Eurotax, forming EurotaxGlass’s - Europe's leading supplier of automotive business intelligence across 28 countries. The merger has created a group with unrivalled resources and knowledge. Today, EurotaxGlass’s offers products and solutions that are essential at every stage of the vehicle lifecycle – from valuation, technical and fleet management data, through to estimating, bodyshop and dealer management systems and web-based services. Recent developments include valuation data for consumers – offered via the Glass’s Motoring Guide website (www.glass.co.uk) – and the pan-European Market Intelligence Service that provides bespoke data and analysis for the industry at large.
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The list price of the average* new car rose by 1.4 per cent, year-on-year, to the end of October 2005, equivalent to a rise worth £182. The findings, published by EurotaxGlass’s in the monthly Glass’s New Car Market Trends report, point to a continued modest increase in new car prices, albeit at a rate that remains below that of UK inflation as a whole (the Retail Prices Index currently stands at 2.5 per cent).The sector that has seen the greatest increases is the lower-medium sector (Ford Focus, Vauxhall Astra, etc), with an average list price rise of 3.2 per cent, or £396, over the past 12 months. At the other end of the spectrum, superminis (Vauxhall Corsa, Renault Clio, etc) have seen list price reductions worth 1.4 per cent, or £130, on the average car.
"Current low levels of list price inflation are particularly noteworthy given the continuous improvements being made to vehicle specifications, as well as the growing physical dimensions of new cars in most sectors," comments Alan Cole, Editorial Consultant for the Glass’s Market Intelligence Service. "Buyers are effectively getting more for less. However, demand is simply not strong enough to enable vehicle manufacturers to increase prices in response to rises in steel and energy costs."
He continues, "Dealers are caught between a rock and a hard place. Retained margins of 1 per cent or less on the selling price of a new car are the order of the day, and new car profitability is still in decline. This all means there is very little room to offer further discounts on new cars and, with finance deals already very attractive, retailers have to be increasingly imaginative to secure consumer interest."
Headline figures
There have been year-on-year list price increases at or beyond the 1.4 per cent market average in the following sectors:
- Lower-medium (Ford Focus, Vauxhall Astra, etc): up 3.2 per cent
- Upper-medium (Vauxhall Vectra, Ford Mondeo, etc): up 3 per cent
- Large Executive (BMW 5 Series, Audi A6, etc): up 1.4 per cent
- Compact MPV (Renault Megane, VW Touran, etc): up 1.1 per cent
- Large MPVs (Ford Galaxy, Renault Espace, etc): up 1.1 per cent
- Compact executive (Audi A4, Mercedes C-Class, etc): up 0.2 per cent
- Sports Utility Vehicle (Toyota RAV-4, Land Rover Freelander, etc) down
- 0.2 per cent
- Supermini (Vauxhall Corsa, Renault Clio, etc): down 1.4 per cent
The single largest list price rise during October was for the Lexus SC430, which increased by £1,993 to £53,905. The greatest list price fall was for the Toyota Corolla Verso 1.6 VVT-i T2 MPV, which had a reduction of £505 to £13,297.
To request a free electronic copy of the latest Glass’s New Car Market Trends report, email: marketing@eurotaxglass.co.uk, quoting reference ‘New Car 10’.
Web Sites:
www.eurotaxglass.co.uk (trade)
www.glass.co.uk (consumer)
Research Material:
Glass’s New Car Market Trends methodology
* The list price of the ‘average’ new car referred to in the monthly Glass’s New Car Market Trends report is based on analysis of over 1,000 models across key UK vehicle segments. To ensure the results are representative of true market trends, the data is weighted by sales volumes.
About EurotaxGlass’s
William Glass first published Glass’s Guide to Car Values in 1933 and July 2003 marked 70 years of the motor trade’s ‘Bible’. In 2000 Glass’s merged with Eurotax, forming EurotaxGlass’s - Europe's leading supplier of automotive business intelligence across 28 countries. The merger has created a group with unrivalled resources and knowledge. Today, EurotaxGlass’s offers products and solutions that are essential at every stage of the vehicle lifecycle – from valuation, technical and fleet management data, through to estimating, bodyshop and dealer management systems and web-based services. Recent developments include valuation data for consumers – offered via the Glass’s Motoring Guide website (www.glass.co.uk) – and the pan-European Market Intelligence Service that provides bespoke data and analysis for the industry at large.
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posted by Jon Fry at 1:11:00 PM
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