Median new-car prices have risen 58% in ten years, while household disposable income has grown by just 2%, according to new research from MG Motor UK.
The research combines an independent consumer survey by Opinion Matters with marketplace insights from Autotrader. One in three drivers (34%) say new cars are much less affordable than ten years ago.
The survey of 2,000 UK drivers, released ahead of the Autumn Budget, found that six in ten (62%) say new cars are less affordable than ten years ago. Almost half (46%) would love a new car but living costs or purchase prices make them think twice.
Purchase price (61%) and running costs (56%) lead buying priorities, compared with manufacturer (26%). Almost nine in ten drivers (88%) would rethink at least one aspect of their next car to bring it within budget, including 41% who would consider a different manufacturer.
More than two thirds (69%) of female drivers say new cars are less affordable, compared with just over half (56%) of men. More than seven in ten (72%) of drivers aged 55 and over say new cars are less affordable, the highest result of any age group.
More boot or storage space (31%) and family holidays or longer journeys (30%) lead the reasons for wanting a larger or seven-seat car, while 24% cite needing a vehicle big enough for travelling with extended family or friends.
Marketplace data shows 54% of new SUV stock is priced at £40,000 or above, while 92% of MG’s new SUV stock is below £40,000.
MG is using the findings to promote its MGS9 PHEV seven-seat SUV. The MGS9 PHEV Comfort starts at £34,210 on the road, £5,790 below the £40,000 mark. With prices less than £40,000 OTR, the MGS9 PHEV range also avoids the Vehicle Excise Duty (VED) Expensive Car Supplement, which MG says is equivalent to £2,200 over five years at current rates.
The MGS9 has seven full-sized seats, with luggage capacity of 332 litres with all seven seats in use, rising to 1,026 litres with the third row folded. Its plug-in hybrid system offers up to 62 miles of electric-only WLTP range when fully charged. Heated front seats, a panoramic roof, tri-zone climate control and a 360-degree reversing camera are standard on Comfort variants, and the car is backed by MG’s seven-year/80,000-mile warranty.
David Allison, Director of Product and Planning at MG Motor UK, said: “This is a wake-up call for the family-car market. At MG, we believe families should not need to pay a premium for a practical seven-seat SUV that works for daily life.”
He added: “Making that aspiration attainable means delivering the space, comfort and technology people really need, at an accessible price. The MGS9 does exactly that, with seven seats and plug-in hybrid driving from £34,210.”
Ian Plummer, Chief Customer Officer at Autotrader, said: “The research shows car buyers want space and efficiency without premium markup and with the MGS9 rapidly surging to become one of the most popular plug-in hybrids on Autotrader, MG seem to have delivered on that.”
MG’s UK registrations grew almost twice as fast as the overall new-car market in September, 23.7% against 12%. A record 18,026 registrations made MG the UK’s fourth best-selling brand that month.
