Car price inflation exceeding wage rises

Car prices have risen five times faster than wages over the past decade.

Research from Moneybarn has found that some models have more than doubled in price since 2011, while wages have risen only a fraction of that.

According to its Carflation study 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%.

Topping the charts, the Jeep Wrangler has risen 117.3% in a decade while the Peugeot 3008 has risen 117%. Nissan Leaf is at the opposite end of the scale, with its sales prices not moving at all in the past decade.