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Are Cars More Expensive Now?

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Used or new? Aren't new cars the same price as they were 20 years ago, accounting for inflation? Pretty sure I've heard this statistic a few times. Due to lower production costs, materials, etc.

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Used or new? Aren't new cars the same price as they were 20 years ago, accounting for inflation? Pretty sure I've heard this statistic a few times. Due to lower production costs, materials, etc.

Both, that is what I thought as well. It shows that in a free market extra credit does not make things more expensive, just more people can have them.

Sadly housing in the UK is not a free market.

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On a classic car group Im a member of someone posted picture of an advert for a Ford Dealership when the Escort was still around, Im sure it was mid-90s, the monthly cost was the same as it is for a Focus now! Same with the Fiestas. So the cost of "buying" a new car is the same today as 20 years ago and thats without inflation!

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Comparing apples and oranges though, surely?

Well it is not unreasonable to ask why one is more expensive and one less so is it? I would say because one is a free market without government subsidy and the other is housing.

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On a classic car group Im a member of someone posted picture of an advert for a Ford Dealership when the Escort was still around, Im sure it was mid-90s, the monthly cost was the same as it is for a Focus now! Same with the Fiestas. So the cost of "buying" a new car is the same today as 20 years ago and thats without inflation!

And those Focus's will probably last half as long again as the Escort you could buy in the mid 90s. Proper value for the long term buy and hold, if you can avoid getting bored of it/pranging it.

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There is huge bubble in classic/sports/exotic cars, far bigger than property.

I found a few old Car and Classic magazines from 2006 a while back, it was painful looking through the classifieds and seeing the prices you could pick stuff up for back then.

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When people think they can make money by doing nothing except sitting on an asset for a few years, prices always go crazy. It's completely unskilled so anyone can do it.

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Ignoring the classic car (and indeed motorbike) markets....I'd say it depends on what you're after at any time. A few years ago estates were well out of vogue, and there was a glut of them on the second hand market. I picked up a terrific 5 year old one for 3k. Today, I'd be looking at 5-6k for its equivalent and there's none to be had anyway.

However, certain other vehicles (say a gas guzzly beemer that isn't one of the hallowed e numbered series) are cheaper, as are smaller run arounds.

Overall though, motoring (at the point of entry - not running it) is still very cheap.

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A lot of people say that houses are more expensive because of cheap credit. I know that credit has made buying a car easier, are they now more expensive?

All depends on what you buy and how you choose to buy it...... ;)

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When people think they can make money by doing nothing except sitting on an asset for a few years, prices always go crazy. It's completely unskilled so anyone can do it.

That's probably the key to it. The sentiment needs to be there, once it is then cheap easy credit can fuel the price rises. Houses last longer than cars too (unless the car is very carefully looked after), which puts much more depreciation pressure on cars.

Edited by Riedquat

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When people think they can make money by doing nothing except sitting on an asset for a few years, prices always go crazy. It's completely unskilled so anyone can do it.

Well in a free market higher prices would increase demand - as happened in Spain and then the asset price would crash.

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Most cars depreciate, so not an investment that can be leveraged up like property. So less incentive to have a low LTV rate?

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Yes. Unless you take into account the low debt rates.

Like houses the debt rate is just built into the price, making cash worthless.

We've been robbed and no one has realised

As soon as they can get people to borrow to eat the price of food will go through the roof.

Edited by TheCountOfNowhere

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There is huge bubble in classic/sports/exotic cars, far bigger than property.

I found a few old Car and Classic magazines from 2006 a while back, it was painful looking through the classifieds and seeing the prices you could pick stuff up for back then.

I suspect that the bubble may well be in the process of bursting. I sold an interesting car just about a year ago after a few weeks on Pistonheads. At the moment there are two pretty similar ones advertised there at the same sort of price that have been there for a couple of months.

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Renting is all the rage when it comes to cars. Quite the opposite to houses. You don't tend to hear the "rentings' dead money" chat when someone is showing off their spanking new rented BMW to their workmates though.

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Renting is all the rage when it comes to cars. Quite the opposite to houses. You don't tend to hear the "rentings' dead money" chat when someone is showing off their spanking new rented BMW to their workmates though.

Yeah, it's funny that.

If you must drive new, renting/PCP could make some sense. Very much a price to be paid for that luxury though.

Wonder if poor people taking PCPs has cleared a lot of atrociously maintained private cars off the roads.

Must admit I don't understand new/used pricing. Seems bubblicious but managed to get what seemed like an ok deal on a delivery mileage 'pre registered' car a few months back. Just luck with timing/stock availability, it seems.

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You are getting so much more for your money now.

easily double the mileage, easy twice as much stuff on it, alloys, bluetooth, satnav decent stereo etc I remember in the eighties a nearside mirror was a paid option as were seatbelts!

So even if on paper the cost looks about the same You are getting often supercar performance every, conceivable gadget and a massive leap in reliability for the same money as your grandad paid on a allegro vandem plas.

http://www.msn.com/en-gb/cars/enthusiasts/35-supercars-that-are-slower-than-the-new-ford-focus-rs/ss-BBomDtQ

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What does the fastest VW Golf sell for now? £30k?

Some 20 years ago it was the 2.8 VR6 which I think sold for around £20k.

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A lot of people say that houses are more expensive because of cheap credit. I know that credit has made buying a car easier, are they now more expensive?

...the good news is British made cars are cheaper in the rest of the world since BREXIT ... :rolleyes:

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Cars are cheaper than they've ever been. You can pick up a substantial 5 seater car (not a city car) for under £10k. That is amazingly cheap.

But people are spending more than ever on cars, buying fancier cars, buying more options.

And they are buying cars more frequently as well.

Funny that.

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around 6 or 7 years i brought a nissan almera 1.5sx 2005 with 18k for around £4.5k

i been looking at mazda 3, yes they are better car better car but they seem to be around 7k for same year. Ford focus which mazda is based on seems little more expensive.

I really little bit stuck what do really. The nissan is currently worth 500quid as 105k on the clock but it always past the mot with only usual wear and tear items. Is it worth selling ?. the other thing is it simple car in that there is lots space in bonnet for easy repairs and can be serviced easily. There is no rust on it.

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around 6 or 7 years i brought a nissan almera 1.5sx 2005 with 18k for around £4.5k

i been looking at mazda 3, yes they are better car better car but they seem to be around 7k for same year. Ford focus which mazda is based on seems little more expensive.

I really little bit stuck what do really. The nissan is currently worth 500quid as 105k on the clock but it always past the mot with only usual wear and tear items. Is it worth selling ?. the other thing is it simple car in that there is lots space in bonnet for easy repairs and can be serviced easily. There is no rust on it.

Does it do what you want still? If so, 100% keep it. A solid car that's not costing you much is a thing of beauty.

My 2005 mazda is rusty round the wheel arches FYI but it's otherwise good. Plan on keeping till it dies.

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You are getting so much more for your money now.

easily double the mileage, easy twice as much stuff on it, alloys, bluetooth, satnav decent stereo etc I remember in the eighties a nearside mirror was a paid option as were seatbelts!

So even if on paper the cost looks about the same You are getting often supercar performance every, conceivable gadget and a massive leap in reliability for the same money as your grandad paid on a allegro vandem plas.

http://www.msn.com/en-gb/cars/enthusiasts/35-supercars-that-are-slower-than-the-new-ford-focus-rs/ss-BBomDtQ

Yep Skoda's latest ad is to race a Superb against some early 90s pin ups. Guess what wins?

Granted its a 4x4 280bhp model with a DSG box (very quick changes).

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