New research by Moneybarn reveals how new cars have become increasingly unaffordable, with prices rocketing up to five times faster than wages over the past decade.
The finance company’s Carflation study has found that some car prices have more than doubled since 2011, whereas earnings have risen by one fifth over the same period.
The increase in the cost of owning a new car is outpacing earnings at a rapid rate.
Between 2011 and 2021, the average earnings in Britain increased by 22%, from £21,100 to £25,780, but the average cost of buying a new car increased by 39%, from £27,675 to £38,585.
In 2011, a new car cost 131% of the UK’s average annual salary, whereas today, this has increased to 150%.
To put it simply, the cost of buying a new car has increased at almost twice the rate of our earnings.
You can view the full research for 80+ popular models of car here: