Are car prices in the UK about to go up?

I'd normally be looking to trade in my car for a new one in about a year's time when it's three years old. I've heard that UK car prices could rise by as much as 20 per cent this year due to Sterling/Euro exchange rates. If that's right I might consider trading in now to beat these price rises. Does this sound right to you? I'd be looking to buy a BMW 3 Series/Mercedes-Benz C-Class or similar.

Asked on 8 September 2010 by forest59

Answered by Dan Harrison

Although easing slightly now, Sterling as been at record levels against the Euro for the past 18 months or so and it has pushed car prices up - significantly in some cases (like Ford's): www.honestjohn.co.uk/news/buying-and-selling/2009-...e, www.honestjohn.co.uk/news/buying-and-selling/2010-...s

As for the future - who knows? Car prices have been falling slowly, but a change in the economic situation could force them back the other way. One factor that may push prices up is VAT, which rises to 20 per cent on 1 January. Many people buying now will face that increase, as some waiting lists are in excess of six months. www.honestjohn.co.uk/news/buying-and-selling/2010-...e

Tags: car prices

Similar questions

When will secondhand car prices go back to normal?

When do you think second hand prices of petrol and diesel cars will get back to the historical norm when a car lost 50% of its value in the first three years?

Will the price of used cars drop this year?

Will second hand cars drop in price this year?