WORLD NEWS FOR MONTENEGRO DIASPORA
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AUTHOR:M.J. GDNUS
Buying a new car has become less affordable for German consumers in recent years.
Between 2019 and last year, the average net annual income in Germany increased by 24 percent, while the average price of a new car jumped by about 40 percent, according to a recently published study, SEEbiz reports.
The average net annual income in Germany rose from around EUR 26.1 thousand to almost EUR 32.4 thousand between 2019 and last year, while the average price of a new car jumped from around EUR 30.2 thousand to EUR 41.8 thousand.
In 2019, buyers needed 1.16 years of income to buy a new car, and last year that figure increased to 1.29 years, according to a study by Oliver Wyman and market research company Jato Dynamics.
Almost half of the price increase was caused by the shift from internal combustion vehicles to electric and hybrid vehicles. Inflation and other economic factors also played a role, according to a study by the German news agency.
At the same time, cheaper entry-level vehicle models have become less common on the market, which is why more and more consumers are resorting to financing, leasing or buying used vehicles. According to the study, new car sales in Germany fell by 22 percent in the period under review.
The main factor when buying a car remains price, but a recent study by the German Fraunhofer Institute showed that the total cost of ownership of the vehicle must be taken into account. The institute estimated that owners who can charge their electric vehicle at home or at work will recoup the higher cost of buying an electric car within three years due to lower operating and maintenance costs.
