Cars in Russia have risen in price by almost a third over the year. The average size of a car loan for new and used cars was also updated to a historical maximum – 1.28 million rubles. Why car prices soared, what will happen in the car market this year and how to save money when buying a car, Izvestia figured out.
Sharp acceleration
In 2021, passenger transport increased in price by an average of 31%, and in January of this year alone, the price increase was about 3%. The car market was hit at once by inflation, rising energy prices, and changes in the terms of the preferential car loan program. However, the main problem was the shortage of new cars, provoked by the semiconductor crisis. Disruptions in supplies amid restrictive measures led to a shortage of chips and other components. As a result, in 2021, cars have risen in price all over the world – their production volumes have decreased.
“Due to problems with logistics in the Russian Federation, the largest increase in prices was recorded for foreign-made cars. In second place in terms of price growth are new cars made in Russia, with an average growth of 10-15%. And a surge in demand at the beginning of 2021 and rising prices led to their shortage in the Russian market, in connection with which used cars began to rise in price (on average by 5-10%),” analysts of Freedom Finance point out.
The largest price increase was recorded in the segment of premium brands, as well as popular crossovers.
So, according to Gazprombank Autoleasing, by December 2021, the new Mercedes-Benz S-class, Hyundai Elantra and Porsche Cayenne have risen in price more than other cars. Over the year, their cost increased by 117, 82 and 74%, respectively, taking into account the installed additional equipment.
The list of leaders in price growth also includes Kia Rio X-line (51%), Hyundai Tucson (49%), Renault Arkana (46%), Lada Largus Cross (45%), Kia Sportage (43%), Lada Granta Cross ( 42%).
Prices have also risen in the secondary market. According to Avito Auto, at the end of 2021, the average cost of used cars in Russia increased by 20.8% compared to 2020, to 349,000 rubles. Most popular brands in Russia went up in price: VAZ (Lada) cars with mileage went up by 18.2%, Toyota – by 13.8%, Hyundai – by 24.4%, Kia – by 25.5%, Volkswagen – by 23, one%. Even more noticeable was the increase in prices for premium brand cars under the age of three years with mileage, on average they added 29.6% in price.
Service analysts state that the demand for cars exceeds supply, so dealers do not have to think about lowering prices. At the moment, when ordering the most popular models, you have to wait for delivery for about a year, and in some cases – up to four years.
well wound up
Taking advantage of the shortage of cars, car dealers impose additional equipment, including it in the price. So, according to the Avto.ru service, if the recommended retail prices for new cars from January 2021 increased by 11% by the end of the year, then the real ones grew two to three times faster. One of the main reasons for such dynamics is the installation of additional equipment.
This is confirmed by the study of Gazprombank Autoleasing. “Of the average premium of 31%, about half was due to an increase in recommended retail prices. The rest is a consequence of the shortage of cars in the showrooms of dealers, ”says the general director of the company Lilia Markova. And the additional equipment installed without alternative leads to a significant rise in price.
According to Sergey Pigalkin, head of the online auction of new cars CarClick.ru, The difficult situation regarding dealers’ margins remains with Kia, Hyundai, Toyota, Volkswagen, Skoda. In the premium segment – with Lexus, Jaguar, Land Rover, Porsche, Audi.
There are still not enough cars in warehouses, but the problem for the buyer now is not to find the right model, but to choose the most advantageous offer close to the manufacturer’s recommended price, Avto.ru also states.
According to the knurled
Analysts and market participants shrug their hands: the problem with the supply of chips is still not resolved, and this year the car market will not reach a plateau. New cars will become more and more expensive under the influence of the shortage of the cars themselves and components, the global increase in the cost of raw materials and logistics. If the dollar continues to grow, then we should expect an increase in the cost of imported cars by up to 20% during 2022, Andrey Olkhovsky, CEO of Avtodom Group of Companies, believes. But in general, growth will be more moderate than last year.
“Ongoing inflationary processes, rising exchange rates, as well as the threat of new coronavirus restrictions will push prices up. And at the end of the year, we can see a price increase of 10% or more. However, the increase in recommended producer prices is likely to be somewhat offset by a reduction in dealer margins,” suggests Alexei Mukhanov, head of research and client analytics at Avto.ru.
According to Sergey Pigalkin from CarClick.ru, in the absence of new shocks, demand for new cars will remain around the 2021 level of 1.7 million units, with prices rising by 10% to 15% over 2022. “On the one hand, for a number of brands and models, availability will increase and dealer margins will decrease, on the other hand, car prices are already extremely high and are becoming affordable for an ever smaller number of Russians,” the analyst notes.
Market participants and analysts expect that the problem with the lack of chips will be resolved by the summer of this year – this will allow to stabilize supply and demand. However, automakers will not be able to increase their capacity in the near future, and the shortage of new cars in showrooms will continue.
Drive away
SberAvto is waiting for the most tangible rise in prices for the most scarce models of the Russian car market. Analysts attribute this to the desire to acquire the most liquid cars for resale. Used cars will continue to rise in price due to a reduction in supply volumes. Therefore, experts recommend choosing alternatives to scarce and overvalued cars due to dealer markups.
It makes sense to take a car on credit if you can make an initial payment of at least 70% of its value. Otherwise, it is better to choose a less prestigious car or consider a used car. There are more and more “young” cars with low mileage on the secondary market. “Already now, the share of cars under the age of five years on the SberAvto platform is 46%. In the current realities, such a car, if it is in good technical condition, will retain liquidity for a long time, ”says Petros Mkrtychyan, general director of the service.
When buying a new car, experts recommend not entering into a purchase agreement with a dealer with a delivery time of more than a month. The geography of the search should also be expanded: in another region, the price may be lower. By choosing a dealer located 300-500 km from your place of residence, you can save 100-300 thousand rubles.
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