The last few years have certainly not been worthy of mention for the car market, which is experiencing one of the worst moments of the last decade amidst the obstacles of the Covid pandemic and the slowdowns following the outbreak of war in Ukraine. Sales, pre-pandemic data in hand, have plummeted and fewer and fewer people are driven to purchase a new car, preferring to extend the life of their vehicles to the “point of no return”. A postponed expense due to another and important factor, namely the boom in car prices.
Skyrocketing car prices in Italy
If the 2022 has proven to be the black year for the car market, with registrations reaching one of the lowest points of the last period, we don’t need to do who knows what complicated thinking to look for the causes of this trend. The first factor to influence, in fact, is the high cost of four wheels, prices that have led many families to postpone the purchase at a later time.
The increase in costs, in fact, travels inexorably down a path that is certainly not good for the car market, which has had to deal with numerous crises in the last three years. From the pandemic to the war, in fact, the common denominator was the shortage of raw materials and chips which, inevitably, has led prices to rise as production costs have increased.
But buying today is really difficult. Numbers in hand, according to data provided by Corriere della Sera, prices have increased by 8% compared to 2021, with a average of 26,000 euros for a new vehicle compared to 24,300 in the past. Families were the ones to deal with the increase, whose investment in new cars fell by 16%, only partially offset by the growth (+6%) in long-term rentals.
The crisis of the new and used
The Fleet & Mobility Study Center has therefore highlighted that the market crisis, to tell the truth, starts from decisions that arrive much further back in time. In fact, the price increase is a trend that started in 2013 when from 18,000 euros ten years ago it went to over 21,000 in pre-pandemic data. An average price that between 2019 and 2022 underwent a record increase of over 5,000 euros.CopyAMP code.
Data that does not smile at the car market, with registrations decreasing visibly in the last period. But if the new doesn’t attract, not even used has had better luck. In fact, the registrations of “second hand cars” go hand in hand with the numbers of “brand new” ones, with prices that are anything but competitive.
The decrease in purchases, against all expectations, was followed by an increase in costs, with a used car costing over 21,600 euros. However, it should be emphasized that compared to ten years ago the process of choosing to purchase a car has changed. If in 2013 only one customer out of four chose used over new, in 2022 it was the choice of one customer out of two, very different and alarming numbers for large companies which, if they want to continue obtaining results in the near future, will be called to review the pricing policy. However, Italy hopes for a change of trend, with the new ones car and motorcycle bonus coming in 2023 which can be the right push to restart a sector that has suffered a lot in recent years.