There is definitely a reoccurring theme here of prices going up dramatically & quality & materials grade going down ..... Audi (& possibly VW) could really shaft themselves if they do follow this path.
I think we’ve all been prepared to pay a premium for Audi up till now, but if standards (& styling) do drop in addition to further price hikes I can see many of us turning to other brands.
Regarding the pricing. Remember years ago. The UK always paid more for their cars then pretty much anywhere else on the planet.
There was a strong campaign mainly led by Quentin Wilson for car manufacturers to lower their prices. Car supermarkets popped up where they were buying UK spec cars from Europe at much cheaper prices, and selling them here undercutting main dealers, The car manufacturers brought UK car prices more in line with the rest of Europe.
But in the last say 5 years, car prices have rose very very quickly. Now, it'd be interesting to see if the same price rises have been across the board in other countries. I would guess not. I think with the UK, car manufacturers know we like to replace our cars every 2-3 years. They know that UK consumers are willing to pay top Dollar (Pound) to get their next shiny car.
I say it's a mixture of car manufactures trying to make the UK more profitable for them (like the good old days) and the UK's current obsession with PCP deals. With PCP people don't care what the sticker price is. All they care about is "How much a month mate" will their next car be. To extract an extra £25, £50, £100 a month out of the consumer, the initial sticker price of the car needs to rise to allow the monthly payments to rise.
Those (me) who hate the idea of PCP and prefer to buy cars outright, are getting priced out of the market, as how many people have £40-£60k sat in their bank account waiting to buy an S3 or RS3? Not many. So those who are being priced out of `buying outright` are being forced down the PCP route. The more people take out PCP deals, the more car prices will rise, so in 2 years, you can buy a newer car (maybe same car / same spec) as the one you have now. But as the Balloon payment is more than half the original car's value, you are forced back into another PCP deal. Manufactures know most people don't want to step backwards, so will either stick to the same car, or upgrade. Those sticking to the same car, manufacturers don't want you spending the same monthly as the current car. So by raising the RRP of the cars, your next S3, from your current S3 is `JUST` another £50 a month.
And so it'll continue until the next financial bubble bursts. UK car re-possession is at an all time high. People are defaulting on their PCP deals, as what initially looked affordable while being sat in the dealership, soon becomes a struggle once you start adding fuel, tax, insurance, tyres etc.
Same thing happened with mortgages. At some point it's going to go pop. Just a matter of when?
Without PCP car prices wouldn't be so high as they currently are. But with PCP average Joe can now be driving an S3 rather than a Focus.
That's my take on the price rises anyway.
