More annual cars on the market
New car prices are falling again
04/02/2023, 08:50 am
If you are thinking about buying a car, you can expect better conditions again. Dealers and manufacturers are offering more discounts, which makes new cars more affordable, a study shows.
According to a study, new cars are becoming a little more affordable on the German car market. Manufacturers and dealers lured customers in March in view of the renewed increase in production with higher discounts on list prices, reports the Duisburg Center Automotive Research. In addition, the proportion of vehicles that dealers and manufacturers have registered on their own account and that come onto the market as special offers after a short time has increased.
The discounts offered on the Internet extended to cars with all types of drive. Due to the end of the subsidy premiums at the turn of the year, the proportion of plug-in hybrids with combined combustion engines and electric motors has fallen significantly to just under five percent of all new registrations. According to study leader Ferdinand Dudenhöffer, battery vehicles also achieved a lower market share of just under 13.1 percent. At the end of the year there was a rush of registrations because the subsidy was lower this year.
With a market share of 81.5 percent, combustion engines were by far the most popular models among the 60 most popular new cars in the first two months. Since they are significantly cheaper on average than their e-competitors, the average new car price fell by a good 2,300 euros compared to the second half of 2022 to 34,762 euros.
The trend reversal in car prices has been apparent since the end of 2022. A seller’s market will eventually become a buyer’s market again, Dudenhöffer explained at the time: “The era of discounts is coming back.” The declining willingness of customers to buy in view of the high inflation is causing problems for the manufacturers, it was said as the justification. Financing conditions also depressed demand, and have worsened as interest rates have risen. At the same time, the manufacturers’ production, which is running at full speed again, is leading to a larger offer.