UK drivers face £9,000 bombshell amid surge in car prices

Buying a new car in Britain has never been so expensive - with the typical price of a new petrol vehicle rising by 67% over the past decade, more than 20 times faster than inflation.

The average list price of a petrol car has surged from £27,036 in 2015 to £45,218 in 2024. If it had risen at the rate of everyday inflation, it would cost just £36,225 - almost £9,000 less.

And it's not just petrol cars burning holes in wallets with new electric vehicles particularly pricey, according to a new analysis by experts at Auto Express, who have identified the key reason for the punishing increases.

When COVID hit, car factories shut down. Supply chains broke. Car makers couldn't build enough cars, so they pushed high-margin models like luxury SUVs and electric cars.

"Suddenly, you couldn't get city cars or superminis - it was SUVs or nothing," said Phil McNamara, Editor at Large at Auto Express.

Popular Models: How Much More Are You Paying?

Brand Model 2014 Price 2024 Price £ Increase % Rise

DACIA Duster £14,277 £18,974 £4,697 +33%

FORD Puma (2020) £25,721 £28,510 £3,074 +12%

VW Golf £24,406 £30,400 £5,994 +25%

MERCEDES E-Class Diesel £46,854 £58,805 £11,951 +26%

Modern vehicles are 21% heavier than they were at the start of the millennium. That means bigger engines, more power, and more money.

With strict emissions targets looming, car makers are forced to push expensive electric models - even though EVs still cost a bomb.

The average new EV costs a shocking £61,701 - way above the £40,000 "luxury car" tax threshold.

European safety laws now demand all kinds of high-tech kit - from automatic braking to lane keeping systems. That's great for safety, but not for your bank balance.

A new round of safety requirements - Euro 7 - coming into effect in 2027 could add another £1,650 to every car.

5 ways to beat the price surge

Buy pre-registered - Dealers slash prices on "nearly new" cars to meet sales quotas.

Buy at quarter-end - March, June, September, December = dealer deal season.

Shop around for finance - Dealers aren't your only option. Compare loans and APRs to save big.

Grab EV discounts - Manufacturers are desperate to hit EV targets, so there are big savings around.

Use Auto Express's Buy A Car service - Snap up deals from trusted retailers.

With regulation, tech, and industry strategy all driving prices higher, one thing is clear: the days of affordable new cars are long gone. McNamara said: "Everyone wants safer, greener cars, but who's going to pay the price of progress?"