FRANKFURT: Car buyers are being told to get ready to spend more money on new cars in the future, and new market research in Europe reports that manufacturers have been spotted using subtle ways to drive up prices.
An analysis led by Germany-based automotive analyst Ferdinand Dudenhöffer forecasts that anyone in the market for a new car during the current economic uncertainties should prepare themselves for unexpected costs.
That's because manufacturers are driving up prices with both hidden and clear measures, according to a research from Center Automotive Research (CAR).
Fiat and BMW, for example, have cancelled the low-priced entry-level variants of popular models, study lead Dudenhöffer said.
Mercedes' best-selling car, the GLS SUV, has meanwhile been announced with a 10% higher price.
At the same time, manufacturers in Europe are scrapping any discounts they had on new cars that can be freely configured online, while the prices for so-called car subscriptions have risen.
Many manufacturers have also been putting more resources into luxury cars, since the profit margins to be made on selling larger SUVs and fancy saloons are higher than those of compact cars.
During the chip crisis, this led to manufacturers putting their scarce resources into the luxury class where good money was to be made.
For the time being, manufacturers can still work off the many pre-orders on smaller, cheaper cars that have accumulated, says Dudenhöffer.
But the picture will soon change if, in addition to rising prices, credit interest rates also increase and the risk of default on consumer loans rises at the same time.
