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What's the real story behind the soaring cost of new and second-hand cars? As the car industry pulls in huge profits, Dispatches ..


Base entry models old tech gets phased out with new
VW Golf ICE £20,400 ($24,730)
VW ID-3 EV £35.505 ($43,042)
Used Second hand ID-4 EV £59,995 ($72,731) you can have it now.

Affordability
2012 Ford Fiesta cost half the average salary to buy new.
2022 Ford Fiesta cost double the average salary to buy new, as it gets axed in Europe.

Why have car prices become so expensive
Folk locked up at home during covid, with nearly every business closed folk saved a lot of money up, and with car plants shut down it fuel pent up demand with short supplies and high demand as the covid bug packed his bags left the UK In 2022.

Car market re-opens in 2021
UK car dealers profit up +626%
Car manufacturers profits up +300%
Stellantis UK sales down -12% but profits were up by the same amount, with 12 month wait lists.

Automakers blame increased price of raw material and lack of cars on parts shortages
Tyre tire rubber up 72%, energy costs up 50%, nickel in EV's up 100% they the manufacturing cost rises on everything have been huge.
UK customers car buyers have done there bit shouldered the burden higher costs, when asked why new cars are getting so expensive why automakers not shouldering more of the burden, automakers say it is out of their control blame shortages of computer chips is the main cause of the huge increases in car prices. There are up to 3,000 to 4,000 semi conductor in a typical EV that is the No1 problem.

Geo-political situation
Taiwan makes most of the worlds chip, the position is going to get worse with China, and car companies will go to the back of the queue for chips as they are in massive demand in other electronic goods that are in higher demand, the car industry buys only 1 in every 9 semi-conductors produced, during the pandemic the car makers cancelled orders whilst other electronic goods were in high demand put in big long term orders.

So you cant buy new cars due to shortages you buy second hand?
Car dealers have a shortage new cars, so half the new car showroom if full of second hand cars.
Very old 15 year old cars are seeing 249% increase in prices, in general nearly new used cars have jumped 33% on average this year.

You are sometimes paying more for older second hand cars, due to long wait list times of newer models.

Old VW Golf ICE £20,400 ($24,730)

What use to average sized mass-produced new car VW ID-3 EV normally starts at £35,505($43,042).

Second hand used versions are £59,995 ($72,731) if you want it now instantly.

It's obvious average working class & middle classes are being priced out of the new car buying process, almost WEF like, you need certifying if you pay $72,731 EV that use to be a $24,730 Golf/Rabbit C segment car. Is this car dealers maying hay while the sun shines orating the pee out of the consumer? or is it covid that has caused this with money printed inflation & pent up demand, Ukraine war or just the chip shortages a combination of all combined?

Car makers are being accused of abandoning small cars for the masses, in favour of high profit SUV's?
Ford are abandoning ending production of Fiesta/Focus ICE cars in Europe it is true, sales have plummeted over the last few years that more to do with giving the more profitable SUV & Transit vans all the computer chips first over small cars sold at a loss, automakers are being accused of only interested now offering high profit SUV's. Every new automaker TV advert seems be SUV's.

Automakers have a limited supply of silicone chip, expensive SUV's are hugely profitable use a lot more chips than a small car, it's simply a commercial choice. So the masses working classes are priced out of the new car buying process.

Automakers say the only way can make EV's profitable pay is offer top of the range models go more up market, which sounds like the death nail for middle of the road mass producers brands like Ford & VW in Europe personally l feel they will end up getting wiped out by the Chinese in Europe, Ford's commercial vehicles like the Transit EV will probably be one of the survivors.

So what's the alternative for average Joe European the masses if they can't afford expensive SUV EV's in the future, maybe hire a car only when you really need it?
Dispatches investigation team looked into hiring a cheap hire car for 1 day. Hire car companies in the UK sold off most of their entire fleet of hire cars during the pandemic to stay afloat, as everybody got locked down in the stopped hiring/flying into airports. Hire companies themselves are now having problems same problems getting in new stock, cheapest small rental car to hire for 1 day was an old Ford Focus kept on during the pandemic cost £165 ($200) for 1 days car hire that's crazy, when the TV presenter phoned up to book up the Ford Focus she found the price at jumped to £261 ($316) for 1 days car hire. Car hire prices have trebled with an average prices around £800 ($970) a week. So if hiring a car is to expensive for a vacation and buying a new car is out reach, where does that leave the masses in the future, its almost looking WEF.

Car crime parts theft has gone through the roof
Spare parts for cars are extremely getting harder to source from your main car dealers parts departments as everything these days has computer chip in them, l waited 9 ages for Ford electric door mirror the Ford parts guy said you will be lucky originally promised two weeks delivery, nine months later l gave up waiting got a refund. Cars like the Ford Fiesta is just going out of production not being made anymore, insurance write off cars car swaps crime nothing new, but is massively on the increase as well.

Owners are finding it impossible to source spare parts with chip in on nearly new cars, the Fiesta now has become the UK's most stollen car by criminal gangs that strip them down are making a fortune on selling spare prices at above dealer price, the police filmed in the video said they had had 3 Land Rover police vehicles stolen by the car parts strippers.

Many British families budgets won't stretch EV's when ICE cars get banned in 2030
Worse of all the incentives to buy electric car have been removed for buying EV's by Westminster British Government, whilst Rishi Rich is giving billions of taxpayers money at COP as reparation money to counties in Asia that buy warmonger Putin's oil, which make buying new EV's totally impossible for working class people that relied on incentives discounts on EV's, that are struggling with big increases in electric gas utility bills from $2,000 in August 2022 to $8,000 a year next Apri, and crippling huge rises in income & stealth taxes due to sanctions on Warmonger Putin plugins into electric will bankrupt them.

Conclusion is British cash strapped families won't be able to afford to be able to afford EV's to be part of the electric car revolution. With high interest rates coming next year to dampen inflation those that have taken the big plunge buying expensive EV's might be part of a new big 2008 type sub-prime mortgages crash in car loans in 2023, and those with mortgages fear of losing jobs next year won't buy new cars in 2023 which will cause a total car sales crash in next year, which will force automakers into lowering prices, the masses are then told they will be ables to shoehorn their family of four into a Citroen Ami EV LOL, got a feeling the Chinese will fill the affordable cheap EV void for the masses after 2030.
 
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