The prices of new cars have been a hot topic in recent years, causing significant concerns among both customers and sellers.
Experts from CARET have compiled an annual report that includes a detailed comparison of prices for several hundred car models with the same engines and similar equipment versions. Based on this, short reports have been prepared, revealing insights such as the actual increase in prices for top models from August 2022 to 2023 and whether the type of engine plays a role in these hikes. The article also provides advice on how to navigate these challenging times and sell profitably.
How have the prices of new cars in Poland changed over the year?
According to data prepared by experts from CARET, the increase in prices of cars of popular brands in Poland amounted to an average of approximately 10% on an annual basis from August 2022 to the same month in the following year.
Let’s check the detailed differences in prices of specific models. The year-to-year comparison involves identical car models in equivalent equipment versions.
As we can see in the table, the price increase depends on the car model, its engine and equipment.
Fiat 500 takes the leading position in all rankings. The highest price increase was recorded in the SPORT version with a 1.0-liter 120 HP petrol engine, almost 35%. For comparison, this model with a 1.0 hybrid engine with a power of 70 HP l in the DOLCEVITA version achieved an increase of 19%.
The significant price hikes for Fiat may be attributed to the past popularity of models like the Fiat Seicento or Fiat Punto. The Fiat 500, costing at least 67,000 PLN, now occupies a similar position as the previous Punto model, the 500X, priced at almost 100,000 PLN.
Another example of a huge increase in prices of smaller, compact cars is the Hyundai i10, which appears as many as 5 times on the list of the TOP 15 highest price increases by model. This smallest model from the Korean brand’s offer was for a long time one of the cheapest cars on the Polish automotive market. In August last year, this model with a 1.0-liter petrol engine in the basic PURE version cost PLN 52,000. However, a year later, the price of the model was as much as PLN 15,000 more.
The year-on-year increase in car prices is also noticeable in the case of electric and hybrid vehicles. Restrictive CO2 emission standards force manufacturers to install expensive technological solutions in their vehicles.
For example, the popular Citroen e-C4 model with an electric engine in the LIVE PACK version, popular in Poland, increased in price by approximately 18.5%, and the hybrid version of Fiat Panda by as much as 25%.
Interestingly, hybrid Toyota C-HR models with such an engine, in various versions and with different power, have gone up in price by just over 1% on average.
How to trade cars effectively in the face of high prices?
Increases in the prices of new cars in recent years have created many challenges for vehicle trading companies. One of them is maintaining higher stocks resulting from, among others, from waiting longer for cars to be sold. This creates additional costs that must be borne by the importer or car dealer.
Can we then conclude that the prices of new cars have already reached their maximum level?
I am convinced that the dynamic price growth will eventually stop. We can already observe significant pressure to offer discounts for specific brands. At present, we see increased availability of new cars on the market and a gradual reduction in interest rates, indicating growing demand. A solution to this challenging situation is undoubtedly cooperation with the CARET platform, which makes it easy to sell cars across Europesays Adam Orzechowski, General Sales Director at CARET.
Creating an account on the CARET platform not only allows you to liquidate your car stock, but also brings benefits in the form of increasing the margin obtained on car sales. Thanks to this, you can quickly and easily improve your cash flow while increasing your turnover. Cooperation with professional contractors from all over the European Union also allows you to gain new markets, build fruitful business relationships, and reduce costs related to, among others, with acquiring new contractors.
I definitely recommend CARET as an opportunity to enter new markets, which increases the chance of profit in these unusual times for the industry. This is an intelligent solution for professionals in the automotive industry that provides a database of buyer inquiries on the European market. Additionally, we can safely establish business contacts with recipients throughout the European Union. Offers are added to the system in a simple and quick way. It’s a really very intuitive and B2B business-supporting solution that we offer to our partners for free.– sums up Adam Orzechowski.