How much have car prices risen since the pandemic began?

Most of you have probably noticed that car prices have risen dramatically in the last two years. But how much have they increased by? Let's have a look at what we've got.

You’re not seeing things; new and used vehicle prices have risen dramatically in the last two years (not to mention, house prices, petrol, groceries – everything, it seems, except wages).

Supply challenges resulting from a semiconductor shortage, increases in raw material costs, complications with shipping and components procurement, factory shutdowns, and other pandemic-related issues are among the reasons for automobile price increases.

But how much have these snarls pushed up automobile prices? What options do you have if you need assistance financing your next purchase?

Let’s have a look at what we’ve got.

The cost of a new car is rising.

According to an ABC report citing the website pricemycar.com.au, the price of new cars has increased by as much as 25% since the pandemic began.

Meanwhile, according to a rigorous analysis of 1100 models conducted by goauto.com.au, the average price of a new automobile has risen 7.6% since pre-pandemic times as of March 2022.

However, it varies greatly from one manufacturer to the next, and even from one model to the next.

Some models, like the Toyota Yaris, have increased by as much as 37 percent ($7290 more).

Here are the price increases for some of the more prominent manufacturing brands:

Land Rover: 9.01%, Audi: 8.59%, BMW: 8.42%, Jaguar: 5.33%, Lexus: 3.36%.

Here’s how much some of the more well-known brands have raised their prices:

Volkswagen: 9.83%, Hyundai: 9.06%, Jeep: 8.91%, Nissan: 8.59%, Toyota: 7.70%, Fiat: 7.21%, Mitsubishi: 6.80%, Renault: 6.60%, Subaru: 6.00%, Citroen: 5.93%, Mazda: 5.30%, Ford: 2.73%.

Used cars

Because of the long wait times for new cars (due to supply constraints), it appears that used car prices have risen even higher.

According to Datium Insight’s price index in this ABC article, used automobile prices have increased by 50%.

Meanwhile, Redbook.com.au, a car valuation expert, predicts a 25 to 35 percent increase in recent years.

What's the best way to pay for your next purchase?

Have you ever wondered how your next-door neighbor got his brand-new car?

According to Mozo research, 52 percent of auto buyers took out a loan in the last decade, with an average loan size of $25,000.

While most vehicle loan companies provide a maximum duration of up to 7 years, the average loan is often repaid in the 2-3 year range.

It’s also worth noting that if you’re buying a vehicle for your company, the federal government’s interim full expensing program can boost your company’s cash flow before the June 30 financial year end.

So, if you’d like to learn more about financing your next vehicle purchase, whether for your family or for your business, contact us immediately.

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au

Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your situation and may not be relevant to circumstances. Before taking any action, consider your particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.

Contact Us

Schedule your free 15-min call with an advisor

Let us know how we can help below.