For many Germans, great freedom begins on four wheels. No matter how often the automotive industry uses this image to advertise its vehicles, it cannot be dismissed entirely: life is easier when there is a car right in front of your front door for the journey to work, to the children’s soccer training or a spontaneous vacation in the mountains. It is often impossible to imagine everyday life without your own car, even if there are alternatives such as public transport or car sharing. But Germans’ relationship with cars is currently difficult. There is the stumbling automobile industry, which is questioning our self-confidence as a car nation. And there is the ever-increasing price that drivers have to pay for their mobility, be it for the vehicle itself, repairs or insurance. And it seems that there is no major improvement in sight. The VW Golf has become expensive First of all, the price: new cars have become 25 percent more expensive since 2019, i.e. before the pandemic. That’s slightly more than the general inflation rate. So it’s not all that bad after all? The problem lies in the details. Small cars in particular have become significantly more expensive over the past few years, as an analysis by the ADAC automobile club shows. Small cars with combustion engines cost on average 76 percent more than in 2019. The increase is significantly lower for electric cars, but the range is still very limited. Higher material and personnel costs are the reasons for the price increases, says Jochen Hauck from ADAC. In addition, there are fewer and fewer small cars. Manufacturers are eliminating the model range in this segment because the profit margin is smaller here. Examples of this are the Opel Karl, the VW Up or the Citroën C1. This also means that the available range is becoming more scarce. Other models, which were once cheap entry-level models, now cost a small fortune. An example of this is the VW Golf. Converted into euros, the first Golf from 1974 cost less than 5,000 euros. Of course, salaries and the general price level were lower back then. But even in today’s prices, drivers now have to spend almost twice as much for a Golf as they did back then, more than 29,000 euros. “The equipment and safety are of course better,” says Hauck. Five decades ago, drivers could only dream of electric windows, air conditioning or navigation systems.More on the topicIf you can’t or don’t want to afford a new car, buy used. But here too, prices have risen excessively since 2019. The reasons for this include delivery bottlenecks for new cars during the pandemic, but also the high demand for used cars. First interim conclusion: Drivers who are looking for a small and cheap car have a particularly difficult time. Car insurance costs a lot. Let’s move on to the running costs. There’s some good news there. Fuel costs are no longer as high as they were at their peak three years ago. A liter of Super E10 currently costs around 1.67 euros on a national average and diesel costs 1.58 euros. Parking for residents is still comparatively cheap in some cities. In Munich, for example, which otherwise ranks at the top of almost all price rankings, the parking permit costs 30 euros per year. However, there are also some municipalities that raise prices significantly. In Potsdam, for example, until recently it was only 30 euros per year, but now it is 145 euros. The biggest worry for many drivers is likely to be vehicle insurance. According to data from the Federal Statistical Office, costs have increased by 50 percent in the past five years. The reason for this is that both repairs and spare parts for cars have become much more expensive and insurers are passing this on to their customers. Some providers have even slipped into the red with this part of their business. The situation is no longer that bad. However, those insured do not need to hope for falling prices. Only recently did the news from the General Association of the German Insurance Industry make the rounds that hourly rates for car repairs average 200 euros. Spare parts have also become more expensive.
So if you’re looking for cheaper car insurance, you shouldn’t rely on your own insurer, you have to take action yourself. For example, the costs can be reduced by changing the provider, foregoing fully comprehensive insurance, reducing the number of drivers, adjusting the deductible – or by reducing the mileage and adjusting the insurance accordingly. All in all, the monthly costs for a car are several hundred euros, especially if you take the loss in value into account. Will Germans lose their desire to drive as a result? If you look back at the past few years, the number of new registrations has fallen slightly. However, there was positive news for the industry again in September, with car sales increasing again. The increases were particularly large at Volkswagen. That also means: the Golf remains a classic. Even if the price tag has changed.
Go to Source