Car manufacturers have started to raise the prices of their vehicles in the UK as a response to the plunging value of the pound.
Peugeot and Citroen were the first two manufacturers to increase their prices back in August, bumping the list price of their vehicles by two per cent after the Brexit vote.
Ford raised its prices by 1.5 per cent last month, while at the start of October Vauxhall’s list prices increased by 2.5 per cent.
Ford Fiesta now £200 more expensive
As a result, some of the most popular cars in Britain are significantly more expensive than before, with the price of a Ford Fiesta now £200 more expensive, while a Vauxhall Astra is £470 pricier.
Other manufacturers planning to raise their prices include Honda and Nissan who will increase the cost of their cars by around 0.9 per cent, while Suzuki will raise prices by two per cent.
Prior to the Brexit vote, the UK’s automotive industry overwhelmingly came out in support of Britain remaining in the EU and since then many have reported substantial losses already.
Vauxhall’s parent company Opel stated that market instability caused by the Brexit vote has cost it £346 million so far, while Nissan warned that more problems were likely to follow.
'Consumers shouldn't be too worried'
However, some manufacturers like Jaguar Land Rover have announced that they have no planned cost increases, while BMW has also announced it wouldn’t raise prices.
As well as that, Professor Garel Rhys, director for automotive industry research at Cardiff Business School, said that consumers shouldn’t be too worried about the rising prices.
Speaking to the Daily Mail, he said: “List prices may have gone up, but it’ll be hard for manufacturers to make them stick. The ethos of discounting and haggling on the forecourt is ingrained.”
