The rising cost of new vehicles exposed: Why your Toyota Camry, Toyota C-HR, Honda Civic, Hyundai i30, Mazda3 and Nissan X-Trail are more expensive

No, you’re not imagining it, cars are getting more expensive — a lot more expensive.

Some popular models in the Australian market have increased nearly 60 per cent in the past five years.

A study of prices from September 2019 to September 2024 highlights some key models have risen sharply, but with strong sales continuing it appears customers have accepted the new pricing reality.

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Much of the blame was originally attributed to the pandemic and the strain on the global supply chain, as the world economy has recovered prices show no sign of reducing. In reality there are a variety of factors contributing to you paying more at the dealership.

Car markers are being required to add more and more safety equipment in order to meet ANCAP’s five-star bar and that has been a major factor. As has the strong demand post-pandemic, which has allowed for the car companies to increase prices without any major backlash. 

This week’s launch of the Toyota Camry is a prime example of how car prices have leapt up in recent years, with the popular mid-sizer jumping up more than 32 per cent over this time five years ago. That’s just for the like-for-like comparison between the Ascent Hybrid models. When you factor in the loss of the petrol-only model the price for the most affordable Camry is now 43.9 per cent more than it was pre-pandemic.

This is just one example of the modern trend for more advanced powertrains, as well as increased safety and convenience items that are driving up prices. Toyota’s compact SUV, the C-HR, has increased a whopping 59.2 per cent for its entry-grade model in the past five years as it moved to an all-hybrid and more premium line-up. 

2024 Toyota C-HR

But it’s not a Toyota-only problem. The popular Mazda3 small car has increased dramatically, with its entry-level model up 21.9 per cent, while the Nissan X-Trail 2.5 ST model has leaped up 19.8 per cent in the past five years. 

Across the board cars are getting more expensive with very few exceptions.

Sub-$30k models are a shrinking market with inflation joining the other factors in potentially pricing people out of a new car.

Models like the Ford Focus and Holden Astra have been dropped, reducing the competition at the lower end of the market.

2024 Mazda3

As a result the cars remaining have steeply increased in some instances, with the Honda Civic leaping up enormously under the brand’s direct-to-consumer strategy.

The price of the Civic VTi-LX has leaped up 40.5 per cent in the past five years, but with the massively slimmed down line-up, the most affordable Civic is actually 110.8 per cent more expensive - rising from $22,390 to $47,200.

Hyundai, once known for its affordability, has spent the last five years pushing a more premium range of cars and this has resulted in a dramatic price change. Five years ago the entry-level i30 Go cost $19,990 but the base model will now set you back $24,000, which is a 20 per cent jump.

There is one group of cars that have seen multiple price drops in recent times though: electric vehicles.

2024 Tesla Model 3

The entry Tesla Model 3 is now 16 per cent cheaper than it was five years ago, while we’ve seen several models, including the Ford Mustang Mach-E, Jeep Avenger, Lotus Eletre and others, receive major price reductions either before or immediately after hitting the market.

However, for petrol and diesel powered vehicles, don’t expect any similar price reductions unless there is a dramatic change in market conditions.

History shows that once prices increase they rarely return to previous levels. So as car companies add more fuel efficient engines, more safety technology and more luxury items expect this upwards trend to continue.