In both new and used cars, the price of new cars has been rising for more than a year, with the main reason being a lack of components that maintain a strong imbalance between supply and demand.
More and more expensive cars, that’s what we’ve seen since the start of the covid pandemic in early 2020. A context that does not seem to have changed much since then, with a semiconductor crisis in particular continuing.
“We remain in the same dynamic with a sharp rise in prices associated with the imbalance between supply and demand, in conjunction with a supply of components that remains complex at the moment,” explains Solal Botbol, general manager of Beev, a specialist sales website. electric cars.
New house prices rose 8% over a year
A situation found in INSEE’s monthly inflation barometer: In May, new cars showed an average price increase of 7.9% over a year.
The situation varies according to the models. If, for example, we look at the two bestsellers in the French market: Peugeot 208 then the starting price will go from 16,000 euros in April 2021 to 19,240 euros a year later, an increase of 20%, but to fall back to 16,400 euros if we take the last price observed in early July.
For the Renault Clio, the base price was 15,900 euros in August 2021 against 17,100 euros at the moment, an increase of 7.5%. If we go further back, the city car started at 14,100 euros in February 2020, just before the first confinement in France, or 3,000 euros less than at the moment.
The electric, a little more affected
Increases related to thermal models, but so much the more 100% electric cars, with a supply chain disrupted by the war in Ukraine, especially for German brands.
The most striking example is Tesla Model 3, which had a double effect: higher prices and lower bonuses accordingly. Without taking subsidies into account, the price of the base version has gone from € 43,800 in June 2021 to € 53,490 at present (+ 22%). But taking the bonus drop into account, the difference is even greater: We could actually deduct 7,000 euros from the Model 3 from June 2021 at a final price of 36,800 euros. Barely a year later, with a subsidy falling to 2,000 euros, at a sharply rising price, the included aid bill rose to 51,490 euros, a jump of almost 40%.
But the increase also relates to the most affordable models, which penalizes the transformation of the car fleet, although maintaining the ecological bonus remains important to support sales:
“The cheapest electric car on the market, Dacia Spring, for example, so the price excluding bonus go from 17,000 to almost 20,000 euros, emphasizes Solal Botbol. Fortunately, the French state has maintained the bonus and the fact to withdraw the means. To take advantage of the maximum bonus , from 45,000 to 47,000 euros seems to me to be an appropriate response to these price increases on electricity “.
Even a small car without a driver’s license, Citroën Ami, is not spared. From 6990 euros, the starting price has increased by 18% to 8190 euros.
Opportunity, security sacrifice for lack
In addition to the price, it is the increase in delivery times that seriously disrupts the market. In a shortage situation, the car groups direct the components towards the most expensive vehicles, where they achieve the most profits. This explains the paradoxical situation of the results recorded last year by the main producers with declining turnover but record profits.
The only solution to find a car quickly: the second-hand market, which naturally saturates, due to the lack of a significant supply associated with the fall of the new market.
This is clearly seen in the latest Autoscout24 barometer. The average price still below 24,000 euros for a used car in France in June 2021 is now shown at more than 27,000 euros.
And this is even more the case for the latest models, whose used price now exceeds the price again, the price to be paid for almost immediate availability. This is especially true for the Dacia Spring (+ 5% for a used model), for the Peugeot 308 SW and Tesla Model 3 (+ 6%) or even a Volvo XC40 (+ 10%), noted Auto more in its issue June 24.
Logically, a refurbished used seller like the Aramisauto also notices this price increase, even though he maintains a significant advantage, in the order of 20% for a car under 2 years old and more than 50% for those over 8 years. .
“On our website, this attraction for refurbished used vehicles has materialized through searches conducted by Internet users. In fact, searches for this type of vehicle have increased by 10% since March. To meet the strong demand from our customers, we have doubled our offer for refurbished used vehicles. “, says Marie Laloy, Marketing and Service Director at Aramisauto.
A context of high prices, both new and used, and high delivery times, which should last another year according to Solal Botbol de Beev, who also notes an even more pronounced shift from buyers of electricity to leasing. “The ideal solution”, according to him, while the transition to a zero-emission vehicle often results in fear of resale value, linked to battery aging and especially the rate of recharging.