UK: Ford, Vauxhall, Nissan Price Hikes Kill Cash for Clunkers Discount
UK magazine Which? Car reports that automakers in the Land of Hope and Glory have hiked prices, effectively killing the advantages of the country’s cash-for-clunkers (a.k.a. scrappage) scheme. The mag cites three examples: “The price of a mid-range Ford Fiesta has jumped from £11,570 in October 2008 when the car was launched to £13,195 in July 2009—a massive 14% increase.” And “Vauxhall’s new Insignia looked affordable in January 2009, priced at £17,981 but
it has now broken the £20K barrier with a list price of £20,430 in July 2009, also a 14% jump.” And “Another chart-topping supermini, the Nissan Micra, was priced 11% higher in July 2009 (£12,395) than in September 2008 (£11,200), although its equipment has been improved.” Said the actress to the Bishop. Yes, well, the conclusion is inescapable. Ish.
It appears manufacturers are inflating prices just when the scrappage scheme requires them to chip in at least £1,000 worth of discount on a new car. The reality is more complicated—global economic conditions have forced a rethink of UK car prices. But some manufacturers have managed to resist price increases despite the rising costs of raw materials and spiralling exchange rates.
In other words, supply and demand, baby. But the point is still well taken: don’t get well taken by car dealers who could conflate the price of a car even if the number was tattooed on their forehead. Or maybe, especially.
More by Robert Farago
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Interesting addition is that the largest demand in the UK is for imported cars - mainly Hyundai i10 apparently. http://www.zigwheels.com/News/Hyundai-i10-soars-on-UK-scrappage-scheme/Hyundai_20090728-1-1 And its true, the bloody things are everywhere. So much for helping the UK or even European car industry (ok - yeah I know, dealers, servicing, parts etc. do get help, but come on...)