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Car prices drive away salaries: Working longer and longer for a new car

Car prices drive salaries off
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D This explains the decline in the number of private buyers of new cars for years, which according to the Federal Motor Transport Authority (KBA) fell to just 33 percent from January to April. Fifteen years ago, around half of all new car purchases were made by private customers.

Private customers are more likely to buy used ones

According to the auto-motor-und-sport analysis, new car prices have increased by 60 percent over the past 20 years, and operating costs have even increased by 130 percent in some cases. The average wage, on the other hand, only increased by 33 percent. An employee today has to work for a new car for around 16 months if he could save his entire income - in 1994 it was three months less. The result: more and more private customers are switching to used ones. According to DAT, brand dealers have lost around 800,000 customers to the used car market in the past five years alone.

No wonder: the price development there was extremely moderate and was based on the income development. The average used car prices paid rose by 32 percent in the past 20 years and thus correspond to the salary development. Back then, as now, an employee only has to work around six months for a used vehicle.

However, the manufacturers are not reacting to this permanent collapse in the private customer market with more moderate new car prices, but with high list prices on which even higher discounts are granted. The evaluation of the current discounts shows that the level has increased further. At the end of 2014 the average discount was 23 percent, in the first quarter of 2015 it rose to 25 percent.

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