Audi prices to rise again in the UK by 2% from this month
Audi prices are due to rise on 24th May by 2%. But we think that the figures add up to an increase this year of over 10%. Unless we’re wrong.
Audi has decreed that it’s time to bump up UK prices once again. Which seems a bit soon. If our reporting is accurate (it usually is) then Audi put up prices in December 2009 following an increase in February 2009 of 2-3%. Which will make this the third price rise in the UK by Audi in fifteen months. Plus of course the VAT rise in January all car makers had to implement.
Audi say that they will honour existing prices for all cars ordered by 24th May 2010, but will implement an average increase of 2% across the range from that date.
The usual excuses for the price rise are churned out, which may be accurate. We’ve got used to car makers telling us that the price rise is due to the weakness of Sterling, but this time Audi are saying it’s because of ‘Currency Exchange Rates’. Which we’re assuming means the same – but not necessarily.
When Audi last upped its prices on 1st December 2009 the Pound bought €1.10. Today the Pound buys €1.16. Which by our reckoning means the Pound has strengthened by almost 6% since the last Audi rise. So maybe Audi are saying the prices have risen again because the Euro has weakened. Seems we can’t win.
Audi have said on the price hike that…
“Recently announced prices for A1, RS 5, A8 and R8 Spyder will remain as originally advertised.
Among the core models in the Audi range, the three-door A3 and five-door A3 Sportback hatchbacks are subject to an increase of 1.9 per cent, the A4 Saloon and Avant rise by 2.4 per cent (in SE form) and the A6 Saloon and Avant by 2.0 per cent.
A5 Sportback, Coupe and Cabriolet models increase by 2.5 per cent, 2.4 per cent and 2.2 per cent, Q5 and Q7 by 2.0 per cent and 0.6 per cent, TT Coupe and Roadster by 0.9 per cent and R8 V8 and V10 by 3.0 per cent. Recently announced prices for the A1 hatchback, the R8 Spyder, the RS 5 Coupe and the A8 remain as before.”
But if we’re right, then an additional 2% this month, plus the vat rise plus the Pound’s increased value since the last rise means Audi prices have gone up by 10.5% this year alone.
Ouch.
Simon Norman says
I don’t get it! All the industry is supposed to be suffering from a decline in sales and manufacturers seem to be pushing prices up regularly?! 10.5% increase when inflation is around 2%, how is this viable?! Manufacturers are downsizing and saving costs but still increasing prices which seems totally irrational. It would be great if carsUK could interview some of their executives to try and understand how they can justify this.
CarsUK says
To be entirely fair to Audi 2.5% of the price increase we calculate is down to the return of vat at 17.5%. But that still leaves us with – by our reckoning – an 8% real price rise since the last price increase by Audi in December 2009.
We’ve had quite a bit of traffic on this story today and umpteen emails asking us how Audi justify this. Our sums may be wrong, so we’ve asked Audi for their take on our maths surrounding their price increase and we’ll update the story when we get it.