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#333321 - 1st Jul 2009 10:00pm Beware the Price Hikes!
BMW Joe Offline
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Registered: 30th Apr 2006
Posts: 12369
Loc: Birkenhead


Prepare for price hikes! Ford has announced an average rise of four per cent from today, and rivals are following suit. One industry expert has even warned motorists could face increases of up to 10 per cent by the end of the year.

Ford confirmed its price rises will add an extra £600 to £650 on models, such as the Ka and Fiesta, in a bid to claw back the hundreds of millions of pounds lost due to crippling euro/sterling conversion rates. The two cars account for 75 per cent of the firm’s sales under the Government Scrappage Scheme, meaning the move eliminates more than half of the £1,000 contribution from dealers. The Ka’s starting price goes up from £7,995 to £8,595, while it’s £650 on a Focus and £700 on an S-MAX.

Renault has confirmed Twingo and Clio prices are up by one per cent from July. Honda has brought in rises of 2.7 to 3.7 per cent – adding £375 to the cost of a Jazz and £500 on a Civic. Peugeots are also up 1.5 per cent, with £200 added to the price tag of a 207. VW, Vauxhall, BMW and Fiat have no plans to change prices.

And automotive analyst JATO Consult has warned more hikes could follow later in the year. Business manager David Di Girolamo said: “It’s possible that Ford will have to put its prices up again and its rivals will probably follow suit. The difference in price between a car bought in January 2009 and January 2010 could be as much as 10 per cent.”

The price increases are due to sterling’s weak position against the euro. Most manufacturers make cars outside the UK, so all their costs are in euros. The Scrappage Scheme is also having an effect as people are largely buying smaller cars, which have less profit margin in them.
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#333327 - 1st Jul 2009 10:02pm Re: Beware the Price Hikes! [Re: BMW Joe]
MattLFC Offline
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Registered: 14th Aug 2004
Posts: 22315
Loc: Moreton/Beirut/Mobile
Only mugs (or people with so much money they don't even know how much they got) buy brand new cars anyway, so they won't notice even if they doubled the price of new cars.

smile

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#333332 - 1st Jul 2009 10:10pm Re: Beware the Price Hikes! [Re: BMW Joe]
MGCraig Offline
AlfaHolic
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Registered: 16th Apr 2006
Posts: 5488
Loc: Spital
Originally Posted By: BMW Joe
[img]
The price increases are due to sterling’s weak position against the euro. Most manufacturers make cars outside the UK, so all their costs are in euros.


Which doesnt effect cars that are mostly sold in Europe, and hardly ever sold in Britain!

Rock on Alfa and Fiat laugh laugh
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