Purchasing a new car in this current market is difficult, to say the least. Thanks to a host of factors, purchasing both a new and used car is more expensive than ever. This has caused many consumers to put their purchasing decision on hold, while others a forced to settle for a lesser model than their original plan permitted. This new pricing trend is causing a lot of worry for Stellantis CEO Carlos Tavares.
In the US the average transaction price of a new car recently topped $47,000 (approx. £35,500) and according to the KBB, Americans spend an average of $47,077 to purchase a new car. In 2021 the cost of an average new car rose by $6,220 (£4,700) when compared to pricing data from 2020. This trend of increased cost seems to only get worse and recent world events are not helping the situation.
Why are new car costs on the rise? Well, it all comes down to supply and demand. Currently, the supply of new cars is down while demand remains. Coupling that with record inflation, a global chip shortage, supply chain issues, the COVID-19 Pandemic, and a newly minted global military conflict and you have the perfect storm.
Stellantis CEO, Carlos Tavares went on to explain the situation to The Detroit Bureau, “I am very concerned about the effect of affordability becoming much more of an issue as inflationary pressures escalate.” Tavares understands that middle-class customers need to purchase cars and this increase in price places a huge amount of pressure on their financial situation.
To remedy this, Stellantis is working to build affordable BEVs following its new strategy for 2030 where they will unveil 25 new BEVs by 2030. The next 8 years will be a critical stage of transformation for Stellantis and we look forward to the possibility of more affordable electric vehicles.