The new cars beating price rises – and those hardest hit

High customer demand, the increased cost of production and shipping – and an acceleration in inflation – have seen new-car prices hit record highs. Here are the worst affected models, and those escaping price hikes.

The prices of new motor vehicles have risen sharply over the past three years – up to 50 per cent for some models – amid record customer demand and rising production and shipping costs amid the coronavirus pandemic, in-depth analysis by Drive has found.

New-car price rises have hit top gear since the start of COVID-19 as prices of materials, production and shipping (or ‘supply chain’ costs) hit new highs, and factories struggle to keep up with demand due to parts shortages.

The price rises have been amplified by updates to existing models, and launches of new models that have brought increased standard technology and safety features – and a higher cost.

In some cases, however, the prices of new-cars have risen despite some features being removed due to the chronic shortage of semiconductors – the tiny computer chips that operate technology and safety systems in modern motor vehicles.

Detailed analysis by Drive of the prices of more than 900 models has found list prices have risen by an average of 14 per cent between January 2019 and January 2023 – compared to 14.6 per cent inflation over the same period.

As exclusively reported by Drive last month, new-car transaction prices – how much buyers pay after stamp duty, registration and dealer delivery costs are included – have risen by 23 per cent over the same period.

The increases in new-car RRPs has been compounded by the reintroduction of separate dealer-delivery fees during the pandemic, and the lack of discounts or drive-away deals amid stock shortages.

While two-thirds of car makers have kept increases to RRPs below the rate of inflation, some brands have hiked prices by up to 32 per cent – and some models by up to 50 per cent in four years.

US off-road SUV giant Jeep tops the list of car makers pushing the biggest price rises, with an average increase of 32.33 per cent over the past four years.

Next on the list was Japanese small-car specialist Suzuki which, despite previously selling some of the cheapest new cars on the market, increased prices by an average of 32.29 per cent over the past four years.

They are followed by Honda (31.1 per cent) – amid a switch to non-negotiable fixed drive-away prices in 2021 – ahead of Skoda (22.9 per cent) and Mercedes-Benz (21.5 per cent).

Market leader – Japanese auto giant Toyota – has increased prices by 14.9 per cent over the past four years – while other top brands which have exceeded the 14 per cent average include Nissan (17.1 per cent), Volkswagen (16.7 per cent) and LDV (15.9 per cent).

Meanwhile, Drive has found the smallest price increases over the past four years have applied to brands at the top end of town – Lamborghini, McLaren, Maserati and Rolls-Royce (on applicable models which are comparable between 2019 and 2023).

They are followed by Alfa Romeo (4.8 per cent rise) and Hyundai’s luxury brand Genesis (4.9 per cent).

The best-performing among the Top 10 new-car brands – that is, the brand that posted the most modest price increases – was Ford, at 6.9 per cent, despite introducing a brand-new version of its top seller, the Ford Ranger ute.

The vehicle that has increased in price the most since January 2019 – in percentage terms – is the Skoda Fabia Monte Carlo city hatch, which has risen from $25,490 drive-away, to $38,990 drive-away.

However, it is worth noting the Skoda Fabia Monte Carlo in showrooms today is an all-new vehicle compared to the car offered four years ago, with new underpinnings, a larger body, bigger and more advanced engine, and far higher levels of infotainment, convenience and safety technology.

Many of the vehicles subject to the largest price hikes have undergone full model changes – adding new technology, safety, bodywork and underpinnings – or are updated models with additional standard features.

While most new cars today have more technology than four years ago, industry experts have speculated higher prices risk alienating buyers who cannot afford the increased costs – and could discourage customers from upgrading from an older model to a newer, safer vehicle.

Other new cars hit hardest by price rises include the Suzuki S-Cross Prestige ($29,990 to $44,490 plus on-road costs, up 48.3 per cent) and Mercedes-AMG G63 ($246,971 to $365,091 plus on-roads, up 47.8 per cent).

Also included in the Top 10 are some of Australia’s cheapest new cars – including the Suzuki Swift GL manual ($15,990 to $23,490 plus on-roads, up 46.9 per cent) and Toyota Yaris Ascent/Ascent Sport auto ($16,920 to $24,640 plus on-roads, up 45.6 per cent).

While most of the vehicles mentioned have been upgraded since 2019 – either significantly more features, a facelift, or an all-new model – the Mercedes-Benz AMG G63 is almost unchanged from the vehicle in showrooms four years ago.

At the other end of the spectrum, 19 model variants have decreased in price over the past four years – by up to 12.7 per cent – including six Porsches and four McLarens.

Third-best is the flagship two-wheel-drive petrol version of the LDV D90 seven-seat SUV from China, which costs $42,990 drive-away today (Executive 2WD), down from $45,990 drive-away for a Deluxe 2WD model in January 2019 (which is comparable on standard features).

Although some versions of the LDV D90 is cheaper than they were four years ago, prices across the LDV range have risen by about 16 per cent – and the LDV T60 ute is up by 30 per cent.

Other vehicles to note include the Chinese MG ZS Excite 1.5-litre petrol small SUV, which today is priced from the same $22,990 drive-away it cost four years ago – however it limboed to $21,990 drive-away in late 2020.

It is worth noting many MG models in showrooms today were not on sale four years ago – and in the past two years alone some MG models have become more than 10 per cent dearer.

Meanwhile, the Ford Ranger XLT dual-cab 2.0-litre bi-turbo 4×4 ute has risen in price by 3.7 per cent – or $2200 ($59,790 to $61,990 plus on-roads) – despite switching to a brand-new model mid last year, with more technology and safety. This is the best-performing Ranger variant in Drive’s analysis.

An excerpt of the data compiled by Drive is included below.

Is there one particular car you’d like to know about? Ask us in the comments below.

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Footnote: Methodology

This analysis covers 931 model variants from 44 brands, with prices captured in January 2019 and January 2023. Data has been sourced from third-party industry vehicle pricing website Redbook – which generally publishes data supplied by manufacturers – as well as each car maker’s website, and the third-party RJ Pound price guide.

Drive has endeavoured to include every new car on sale in January 2023 that has a direct equivalent in January 2019.

Where the structure of a vehicle’s model range has changed – through facelifts, new models or rebranding – variants with similar specification levels have been selected.

In other cases – such as when the level of standard features has increased significantly – vehicles have been matched on engine (for example, Mercedes-Benz GLS350d to GLS400d diesel), or position in the model range (such as Kia Sportage Si Premium to SX, both one up from the base model).

The type of price used – an RRP (before on-road costs), or drive-away prices (which includes all on-road costs) – has been kept consistent where possible, however in some cases an earlier drive-away price was not available.

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