New cars have become increasingly unaffordable with prices rocketing up to five times faster than wages over the past decade, new research has found.
Moneybarn’s Carflation study has found that some car prices have more than doubled since 2011, whereas earnings have risen by one fifth over the same period.
Between 2011 and 2021, the average earnings in Britain increased by 22%, from £21,100 to £25,780, but the average cost of buying a new car increased by 39%, from £27,675 to £38,585.
In 2011, a new car cost 131% of the UK’s average annual salary, whereas today, this has increased to 150%.
The cost of buying a new car has increased at almost twice the rate of our earnings.
Some cars have risen in price considerably faster than others, with the following all having increased by more than 70%:
Rank Car 2011 price 2021 price Price increase 1 Jeep Wrangler £22,515 £48,920 117.3% 2 Peugeot 3008 £17,195 £37,310 117.0% 3 Peugeot 508 £18,450 £36,010 95.2% 4 Mercedes-Benz V-Class £28,307 £54,660 93.1% 5 Hyundai i20 £9,745 £18,800 92.9% 6 Volkswagen Polo £9,495 £17,355 82.8% 7 Nissan NV200 Combi £16,610 £30,225 82.0% 8 Volvo S60 £22,535 £40,045 77.7% 9 Hyundai Santa Fe £22,690 £39,460 73.9% 10 Volkswagen Touran £16,675 £28,905 73.3% 11 Honda Civic Type R £19,995 £34,415 72.1% 12 Volkswagen Golf £13,615 £23,360 71.6%
Not all cars have seen such rapid increases, however, and the following have all seen an increase of less than 25%:
Rank Car 2011 price 2021 price Price increase 74 BMW 7 Series Saloon £57,420 £71,730 24.9% 75 Mazda6 Tourer £20,105 £24,990 24.3% 75 Mercedes-Benz G-Class £81,715 £101,565 24.3% 77 BMW X1 £24,270 £29,935 23.3% 78 Ford Kuga £21,505 £26,445 23.0% 79 Nissan X-Trail £25,280 £30,925 22.3% 80 Volkswagen Touareg £38,955 £46,780 20.1% 81 Vauxhall Astra Sports Tourer £17,270 £20,635 19.5% 82 Volkswagen Tiguan £21,225 £25,305 19.2% 83 Porsche Cayman £39,162 £45,230 15.5% 84 Porsche Panamera £62,783 £69,860 11.3% 85 Nissan Navara £21,033 £22,975 9.2% 86 Nissan Leaf £25,990 £25,995 0%
Interestingly, the Nissan Leaf remains the same price to buy new in 2021 as it was in 2011.
When we then look at the models that have increased the most as a percentage of the average annual salary, these come out top:
Car 2011 price Price as a % of median salary 2021 price Price as a % of median salary Difference Jeep Wrangler £22,515 106.7% £48,920 189.8% 83.1% Mercedes-Benz V-Class £28,307 134.2% £54,660 212.0% 77.9% Peugeot 3008 £17,195 81.5% £37,310 144.7% 63.2% BMW X6 M £82,190 389.5% £115,815 449.2% 59.7% BMW X5 M £80,795 382.9% £113,115 438.8% 55.9% Peugeot 508 £18,450 87.4% £36,010 139.7% 52.2% Volvo XC90 £35,025 166.0% £56,135 217.7% 51.8% Volvo S60 £22,535 106.8% £40,045 155.3% 48.5% Hyundai Santa Fe £22,690 107.5% £39,460 153.1% 45.5% Honda Civic Type R £19,995 94.8% £34,415 133.5% 38.7%
When we account for an increase in the average salary over 10 years, here are the cars that are cheaper than they were in 2011, account for this increase:
Car 2011 price Price as a % of median salary 2021 price Price as a % of median salary Difference Porsche Panamera £62,783 297.5% £69,860 271.0% -26.6% Nissan Leaf £25,990 123.2% £25,995 100.8% -22.3% Nissan Navara £21,033 99.7% £22,975 89.1% -10.6% Porsche Cayman £39,162 185.6% £45,230 175.4% -10.2% Volkswagen Touareg £38,955 184.6% £46,780 181.5% -3.2% Volkswagen Tiguan £21,225 100.6% £25,305 98.2% -2.4% Vauxhall Astra Sports Tourer £17,270 81.8% £20,635 80.0% -1.8%
