Car manufacturers impose new year price hike

Figures revealed by car pricing experts CAP show that two out of three manufacturers increased basic list prices by more than the additional VAT figure, raising average prices by £142.74 during the first month of 2011.

The news is a kick in the teeth for motorists already paying through the nose to get from A-to-B.

It comes days after evidence that wheel misalignment, often caused by pot holes on the UK’s winter ravaged roads, are expected to lead to £100 million in unnecessary fuel bills this year.

CAP New Vehicle Data Manager, David Saville, said that he was not surprised to see manufacturer’s upping their new car prices.

He revealed: “Historically, tax-driven changes to car manufacturer price lists have often been used as an opportunity by manufacturers to realign their ranges and push through additional price increases.

“The latest change to 20% VAT in January was no exception.

“Manufacturers appear to have slipped in basic list price increases of an average of £142.74 alongside the VAT rise.

“Drilling down into the detail, European manufacturers have applied the heaviest increases, whereas Japanese and Korean manufacturers have made minimal adjustments averaging around £10.”