Car prices in 2021: forecast

USAне planning to purchase a car, interested in the price projections for 2021. Based on the trends of the prices many people take the important decision to postpone the deal until next year or to purchase a vehicle in the near future. Analysts on the basis of past experience already figured out that he expects the auto industry in the next two years.

Factors affecting the value of the car

Car market in USA is very sensitive to General economic factors. Subject to significant fluctuations as demand and supply and the pricing of leading manufacturers and dealers of the industry. Thus to the greatest degree from the changes of the General economic situation determines the market for new cars, not used. Among the factors that influence the pricing process are of particular importance:

  • Financial and credit system of the state. We are talking about the financial policy of the current government and the impact of the global economy. For example, the size of the key rate, which depends on the availability of loans for the population or the interest of the banks to issue loans.
  • Competitive environment. The more proposals on the market, the lower the price. The sellers are fighting for customers through discounts, installments, or other tempting offers.
  • State regulation. Various kinds of targeted programs, quotas, subsidies, grants, tax breaks, government contracts and other methods of direct and indirect state involvement are of great importance for the automotive industry.
  • The ability of consumers. Purchasing power and preferences of citizens affect the market and prices.

Car prices in 2021: forecast

In addition, the pricing for the vehicle depends on the currency fluctuations and the General trend of rising prices for goods and services.

Background to the price increase

According to leading manufacturers, the main factor in the increase in prices for vehicles in 2021 – an increase of VAT rates by 2%. Hardly anyone of the participants of the market agree to pay this amount from its own profits, experts say. Under assumptions of analysts, as a result of changes to VAT vans will rise by 6-7 %. With the peak growth will be in 2021. This is because by the beginning of 2021 will be sold out inventory in 2018 and runs out the supply of components purchased for the old prices.

Increasing more than 2% analysts explain the fact that the production of such complex products as cars, due to the purchase of a large number of components and raw materials. Increased VAT is paid repeatedly at every stage of production. Besides, as practice shows, the producers to increase the margin, will take the opportunity to increase the value by more than 2%. In the end, the final price tag for the buyer increases significantly. Experts believe that the cost of transport, due to changes in VAT rates will change regardless of the country of origin.

No less important in the pricing mechanism are still fluctuations of the ruble. As practice shows, the weakening of the national currency immediately leads to higher prices in the showrooms. That’s exactly what happened in 2015. However, the leaders of most auto companies are inclined to believe that if the ruble will not go beyond 75 rubles per Euro, the increase will not exceed 5-7 %.

Car prices in 2021: forecast

That the growth of prices for cars is inevitable, says the head of Volkswagen Group Rus Marcus osegowitsch. According to him, the Russian market cars are still cheaper compared to the main European markets, so the potential for further growth is still there. Also, the head explained that a slow but steady rise of the dollar greatly increases the cost of production.

For information. For the first quarter of 2020 the cost of cars increased on average by 5%. Less added to the price tag Haval, Chevrolet and domestic UAZ — at 1.6 — 1.9 percent.

Factors constraining the growth of prices

The main reason why all major manufacturers of vehicles of the last forces constrain prices – reduced demand. The economic situation in the country is that inflation is ahead of wage growth. Therefore, the purchase of a personal car for many families is a luxury. Competition between brands paying citizens very hard. Although the statistics and shows the sales growth, but the majority of them is buying low-end segment. That is why the fight for customers, manufacturers will keep the rise in price of economy class in the range of 1-2%, so according to most analysts.

A small hope that car prices will remain unchanged, giving a stable key rate and measures of state support. The running state program "First car" and "Family car" extended to 2021. From the state budget will be allocated 3 billion rubles in preferential loans. Buyers will receive a discount of 10% from car cost to pay down payment.

Car prices in 2021: forecast

For information. Programme of state support for 2018 was purchased more than 130 thousand vehicles.

Forecasts of experts and manufacturers

According to forecasts of the Methodist independent Agency prices in the automobile market in January 2021 will increase by 4%. The second wave of increases could take place in anticipation of the summer season. As a result, the average cost increase of about 4%. In the future, the trend of rising cost continues, in increments of one percent per month. But by the end of the year when demand is reduced significantly as a result of discounts and promotions the car will lose in value 3-4%.

That rising prices in 2021 will not be possible to avoid, said the head of Skoda brand. According to Jan Prochazka, all of the resources to contain the price surge has long been exhausted. A similar opinion is expressed by the General Director of consulting company "Walter construction" Eugene Walter. Assuming a stable exchange rate vehicles will rise not less than 10%, said the head.

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